Casino House Edge Explained – Understanding Gambling Odds
Whether you’re playing online or at a physical casino, you’ll likely hear the term House Edge. It’s a prevalent term in the gaming world and knowing what it is as well as how it operates can affect your strategy. We’ll examine what the edge is and its significance. Additionally, we’ll demonstrate how to use this useful tool to your advantage.
What is House Edge in Gambling?
House edge shows the advantage that the casino has. Represented as a percentage, it gives you an indication of how much the casino, or house, expects to win in the long run. The edge does not influence individual results as these are random and unpredictable. It is calculated over an extended period of time and cannot guarantee any short-term profits.
For instance, if you’re playing a game with an edge of 3%, over the long term the casino would profit £3 for every £100 wagered. The remaining £97 shows how much the game is expected to return to the players.
House Edge in Different Casino Games Compared
The house edge between different casino games varies significantly. Additionally, many games have a variable one. This is generally due to the type of bet you place and whether you’re using an optimal strategy. Knowing the casino’s advantage can help you make more knowledgeable decisions about what games to play.
In the table below, we’ve gathered the house edge of the most popular casino games.
| Casino Game | Average Casino Game House Edge |
| Blackjack | 0.5 – 2% |
| American Roulette | 5.26% |
| European Roulette | 2.7% |
| Baccarat | 1.06%, 1.24%, or 14.4% |
| Video Poker | 0.5 – 3% |
| Craps | 1.36 – 11.11% |
| Slots | 2 – 8% |
| Sic bo | 2.78 – 33.33% |
| Casino Hold’em | 2 – 2.5% |
| Caribbean Stud Poker | 5.22% |
| Keno | 20 – 40% |
Blackjack House Edge
Blackjack is one of the most popular games as it offers the best odds of all the casino games. The house advantage can vary depending on your experience, how many decks are used, the rules of the game, and the variant you’re playing.
Using a basic blackjack strategy can reduce the edge by 0.5%. This helps you understand when to hit, stand, or double down. By following simple rules, you can make more informed decisions and boost your odds of winning.
| Blackjack Version | Blackjack Highest Payout | Average Casino House Edge |
| Single Deck Blackjack | 3:2 | 0.5 – 2% |
| Double Deck Blackjack | 3:2 | 0.84 – 2.34% |
| Single Deck Blackjack | 6:5 | 1.9 – 3.9% |
| European Blackjack | 3:2 | 0.5 – 2% |
Helpful Tip: With an optimal strategy, the blackjack house edge is about 0.5%, however, this can go up to 2%. If you’re learning how to play blackjack, you can test your strategy in demo mode at the top UK blackjack casino sites.
Roulette House Edge
Roulette is another well-known table game that has a variable edge depending on the kind of variant being played. With one zero on the roulette wheel, the edge of European Roulette with an optimal roulette strategy is 2.7%.
Meanwhile, it rises to 5.26% in American roulette as a double zero is added. Although it offers a larger payout, the edge is highest when betting on a single number as it provides a larger advantage for the casino.
| Roulette Version | Average Casino House Edge |
| European Roulette | 2.70% |
| American Roulette | 5.26% |
| French Roulette with La Partage rule | 1.35% |
| Single Number Bets (35:1 win) | 5.26% |
Helpful Tip: Even-money bets in a French roulette game with the La Partage rule offer the best roulette odds. Bets such as red/black and odd/even are safer options as they almost provide a 50/50 chance of winning.
Baccarat House Edge
Just like blackjack, the edge of baccarat can vary depending on what you wager – the Banker, Player, or Tie. If you’re learning how to play baccarat, it’s useful to understand this variation. Here’s the baccarat house edge explained for each of these outcomes.
| Baccarat Bet Type | Average Casino House Edge |
| Banker | 1.06% |
| Player | 1.24% |
| Tie | 14.4% |
Helpful Tip: Betting on the Banker in Baccarat gives you the best odds because it has the lowest house edge. On the other hand, wagering on a Tie is the riskiest option as it comes with a high edge.
Poker & Video Poker House Edge
As most versions of poker are multiplayer, they do not have a house edge. Instead, the casino takes a portion of the tournament entry fees or of the rake. A player’s skill and poker strategy mostly impact the casino’s edge in these types of games.
In the table below, we’ve gathered the most popular variants of casino-style poker games and examined their edges.
| Craps Bet Type | Average Casino House Edge |
| Three-Card Poker | Ante & Play 3.37%
Pair Plus 7.28% Six-Card Bonus 8.56% |
| Casino Hold’em | 2 – 2.5% |
| Video Poker – Jacks or Better | 0.46% |
| Video Poker – Deuces Wild | 1 – 3% |
| Video Poker – Bonus Poker | 0.83% |
| Video Poker – Joker Poker | 1.06 – 1.74% |
Craps House Edge
Craps is a dice game where players wager on the result of a pair of dice rolls. This leads to several possibilities that affect the house’s edge. Besides this, the type of bet you make also impacts the casino’s advantage. In the table below, we’ve highlighted the casino’s advantage for the most common bets in this popular dice game.
| Craps Bet Type | Average Casino House Edge |
| Pass Line Bet (Come) | 1.41% |
| Don’t Pass Bet (Don’t Come) | 1.36% |
| Proposition Bet | 11.11% |
Slots House Edge
Instead of a house edge, slots typically use a Return to Player (or RTP) percentage. The RTP is based on millions of spins and gives players a way to know how much they can expect to win back over an extended period.
Unlike other casino games, slots do not require any strategies as they are purely based on chance. Slots use Random Number Generator (RNG) software to determine the result of every spin. This ensures that each spin is random, fair, and independent of previous outcomes. The RTP is based on millions of spins and gives players a way to know how much they can expect to win back.
The RTP for slot machines generally varies according to the type of slot. For instance, progressive jackpot slots usually have a lower RTP because of the jackpot winnings.
| Type of Slot | Average RTP of Slots Games | Average House Edge of Slots Games |
| Classic Slots | 90 – 98% | 2 – 10% |
| Video Slots | 92 – 99% | 1 – 8% |
| Megaways Slots | 92 – 98% | 2 – 8% |
| Progressive Jackpots | 88 – 95% | 5 – 12% |
Helpful Tip: The slots with the lowest house edge are typically the best slots to play. These include Book of 99 (RTP 99% by Relax Gaming), Mega Joker (RTP 99% by NetEnt), and 1429 Uncharted Seas (RTP 98.6% by Thunderkick). Besides RTP, players should also keep the volatility of the game in mind as this determines how frequently the payouts occur.
How to Calculate the House Edge
To determine the edge, you subtract the total winnings from total bets, divide this by the total bets, and then multiply the result by a hundred. This provides the percentage of wagers that the house, sportsbook, or casino, keeps as a profit.
In some casino games, such as slots, the edge is written into the game’s software by the gaming studio. Using a top strategy can reduce it in others, like blackjack and roulette. The house edge varies across games and is often small, but it ensures that the house gets a cut in the long run. To ensure fairness, the edge in games is tested by third-party independent labs, such as eCogra.
House Edge and RTP
Another popular term used in gaming is the Return to Player percentage(RTP). This indicates how much the game should pay back to players in the long run. It is the inverse of the edge. So, if for instance, the house edge is 3%, the RTP is 97%. To calculate the RTP, you simply subtract the edge from 100%.
Helpful Tip: Games with a higher RTP will have a lower house edge. When deciding what game to play, find ones with a high RTP to increase your odds of winning in the long term.
House Edge on Sports Betting
Just like in casinos, the sports betting house edge is encoded into the odds by sportsbooks to see that they profit over time. This advantage can change according to the sport or whether you’re betting on a certain event.
Typically, more popular sports and events have more competitive odds. On the other hand, niche sports typically have higher edges to ensure that the sportsbook has an overall advantage. You can calculate the sportsbook’s advantage using a sports betting house edge calculator to see which one features the best odds.
Our Top Five Tips
Although the house advantage is inherent in all online casino games, there are ways to improve your chances of winning. These include:
- Learn the best strategies: Using an effective strategy in games like blackjack, baccarat, and video poker can reduce the house edge. For instance, betting on the Banker in baccarat lowers the casino’s advantage to 1.06%, instead of 1.24% (Player bet) or 14.4% (Tie bet). Once you understand the strategy, you can then test it by playing in demo mode at the best UK casino sites without risking any real money.
- Go for games with a low edge: You can increase your odds by choosing games with lower edges, such as blackjack and baccarat. This can be further improved by up to 0.5% when using an optimal strategy.
- Choose games by leading developers: Top software developers have their games inspected regularly to guarantee fairness. Such providers are also licensed and audited by reputable and credible authorities, like the UK Gambling Commission.
- Steer clear of high-edge wagers: Despite the tempting potential winnings, high-edge bets come with high edges. For instance, a tie in baccarat pays out 8:1 but the chances of it happening are much lower as the edge stands at 14.36%
- Set a budget: Before you start playing, set a time as well as a financial budget, and do not exceed them. Since the edge is worked out over the long term, it does not guarantee short-term payouts. Therefore, practising responsible gambling is essential.
Final Thoughts
Understanding and using the house edge is a useful tool no matter which casino game you’re playing. It shows you the advantage the casino has on a particular game in the long run.
The lower the house edge, the better your chances of a payout over time. In certain games, using optimal strategies can reduce the casino’s advantage even more. However, the house is calculated over extended gameplay, so it cannot guarantee short-term bets. Therefore, gambling safely is important so set a budget and play for fun.
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