House Edge Explained: Understanding The Odds Of Different Casino Games
By having house edge explained concisely, you’ll be able to understand the payout probability of different casino games. In addition to learning what the house edge is and how it’s calculated, it’s important to distinguish it from return to player (RTP) percentages.
As you read through this casino house edge explained guide, you’ll find practical examples of different games, such as blackjack and roulette. We’ve also included handy tips that explain concepts or terms in further detail to ensure that you learn everything there is to know about the casino’s margin.
What Is The House Edge?
The house edge is a core element of casino gaming, both online and land-based. It represents the mathematical advantage that an operator holds over players in a particular game. This advantage ensures that, in the long run, the casino makes a profit even if some players win from time to time.
A game’s house edge is expressed as a percentage of a player’s wager. It indicates how much of their bet the casino expects to retain over time. For example, if a game has a house edge of 5%, the operator is expected to keep, on average, £5 out of every £100 wagered.
Over the shorter term, the house edge is less meaningful. To increase the probability of turning a profit, a casino operator spreads its risk across thousands of players. Some of these will likely win profitable payouts that cause the platform to lose money. However, the rest will likely lose more money than they win, allowing the operator to recover lost money and turn a profit.
House Edges Across Different Casino Games
Casino games feature a wide range of house edges and most have different values for different bets. Understanding these differences can help you make more informed choices about which games to play at the top online casinos in the UK.
Roulette House Edge Explained
The difference between American and European versions of this casino table game highlights the impact that game variations can have. Roulette odds vary primarily due to the 00 in the American version. However, they are also different due to the La Partage or En Prison rule found in French versions.
European Roulette’s single zero gives it a lower house edge of 2.7%. American Roulette, by comparison, has a house edge of 5.26% even if you use roulette strategy to determine your bets. French Roulette, meanwhile, can have an edge of just 1.35% owing to the special rules that come into effect if the winning number is zero.
Handy Tip: The best online roulette casinos in the UK offer several variants of the game with bonus payouts. These games may have different house edges, so it’s important that you check the paytable and rules before playing.
Blackjack House Edge Explained
Blackjack is a popular casino card game that’s easy to learn, but challenging to master. Using the perfect blackjack strategy, the house edge in blackjack can be as low as 0.5%. This makes it one of the most player-friendly games available at online and land-based casinos. However, poor decisions by players can raise the edge significantly, so using a chart is always recommended.
Just like with roulette, blackjack variants feature differing house edges. Single Deck Blackjack, for example, can have an edge as low as 0.15%, whereas the edge of Perfect Pairs Blackjack can be over 13% if optional side bets are factored in.
Handy Tip: Using blackjack strategy to lower the casino’s advantage is simpler than on most games thanks to the availability of free charts or tables. These explain the best possible actions based on your hole cards and the dealer’s up card. Moreover, the best blackjack casinos let you practice playing for free using demo mode before you’re comfortable playing with real money.
Baccarat House Edge Explained
Like blackjack, baccarat has one of the lowest house edges of any casino game. This popular card game lets you place three main bets. The Banker bet has the lowest house edge at 1.06%. The Player bet, meanwhile, has an edge of 1.24%. Tie bets have the highest edge at 14.36% and are not recommended due to their poor player odds.
Deciding how to bet is complicated slightly since winning Banker bets are normally subject to a 5% commission. Some top baccarat casinos offer variants that don’t charge commission, but these games have alternative setups that actually raise the house edge of the Banker bet to 1.46%.
Craps House Edge Explained
Craps is a dice game that offers numerous betting options and each one has a different edge. This variety is daunting for new players, but generally, most can learn how to play craps in a few minutes. One of the most player-friendly bets in the game is the Pass Line Bet which carries a house edge of 1.41%.
The Don’t Pass Bet, a wager that the shooter will lose, has an every lower house edge at 1.36%. Harways, Any 7, and other exotic bets, however, give the casino a higher advantage which sometimes exceeds 10%. Like side bets in blackjack or roulette, these bets are popular amongst players willing to take higher risks for the chance to win greater payouts.
Poker House Edge Explained
It is trickier to calculate the house edge in poker given the sheer number of variants and formats available. Texas Hold’em and similar multiplayer games don’t have a house edge since the house is not competing in the game. Casino-style and electronic games, including video poker, do have an operator edge, which, in some cases, is very close to 0%.
Three-Card Poker, a popular casino-style game that is similar to blackjack, gives the casino an advantage of 3.37%. In Caribbean Stud the edge is closer to 5.22% while in certain Casino Hold’em games, it can go as low as 0.82%. Surprisingly, with some video poker titles, such as Double Double Bonus, the house edge is actually a negative, but these games are harder to find.
Handy Tip: To cover their overheads and make a profit, poker sites offering Hold’em, Omaha, and similar variants charge poker rake. This can be charged in different ways but is typically a percentage of the total pot or part of a buy-in.
Slots House Edge Explained
Top online slots are the most popular casino games in the UK but have some of the highest house edges. With tens of thousands of titles available, house edges vary significantly but typically range between 2% and 10%. A few titles are outliers and can have edges below 1% or above 11%.
Unlike blackjack, poker, and similar table games, you don’t need any skill to learn how to play slots. Game outcomes are entirely based on luck and powered by random number generators (RNGs). It’s thanks to their simplicity and range of bonus features that slots are so popular despite their high house edges.
Comparing Table Game House Edges And Payouts
This table compares the bets with the lowest casino advantages across the most popular casino table games and lists their corresponding payouts.
| Table Game | Bet | House Edge | Payout |
| European Roulette | All bets | 2.7% | 1:1 – 35:1 |
| American Roulette | All bets | 5.26% | 1:1 – 35:1 |
| French Roulette | All bets | 1.35% | 1:1 – 35:1 |
| Blackjack | Ante | 0.5% | 1:1 |
| Baccarat | Banker | 1.06% | 0.95:1 |
| Craps | Don’t Pass | 1.36% | 1:1 |
Handy Tip: The house edges in the table above are based on classic rules but can vary from one game or developer to another. You should always be able to find the exact house edge or RTP by launching the game and browsing through its options menu for a pay table or list of odds and payouts.
How To Calculate The House Edge
In this next part of our house edge explained guide, you’ll find a brief explanation of how this mathematical advantage is calculated. This task typically falls to software providers and is audited by independent labs, such as iTech Labs or eCogra.
- Identify the bet’s potential outcomes – For each bet, list the possible winning outcomes and their associated payouts.
- Calculate the expected value for each outcome – Multiply the probability of each outcome by its payout.
- Determine the total expected value – Add up the expected values of all possible outcomes.
- Calculate the margin – Subtract the total expected value from 1 (or 100%) to find the house edge.
The best way to understand how to calculate a casino game’s house edge is with an example. To keep things simple, we’re using European Roulette. The roulette wheel has 37 pockets and if you win a straight-up or single-number bet, the payout is 35:1. The probability of winning this bet is 1 in 37, or 1/37, and the probability of losing is 36/37.
- Expected value of winning: (1/37) x 35 = 0.9459
- Expected value of losing: (36/37) x -1 = -0.9729
- Total expected value: 0.9459 – 0.9729 = -0.027
- Roulette house edge: 0.027 x 100% = 2.7%
Handy Tip: The roulette house edge does not change by bet because payouts vary according to their probabilities. For a straight-up bet, while the payout is higher, the chances of winning are lower. The opposite is true for all even-money bets, such as red. The only exception is the five-number bet in American Roulette. This covers 0, 00, 1, 2, and 3 and has an edge of 7.89%.
House Edge vs RTP
A casino game’s house edge and return to player (RTP) percentage are closely related as they refer to opposite sides of the same coin. While the casino’s margin represents the operator’s built-in advantage, RTP is the percentage of wagers expected to be returned to the player over time.
Let’s consider a casino game with an RTP of 97% as an example. Over the long term, players wagering £100 on this game should get an average of £97 back. The remaining £3 becomes the casino’s profit, which means that this game has a house edge of 3%.
Handy Tip: Simply deducting a game’s RTP from 100 will give you the house edge. Most casino games, including Megaways slots, don’t normally list the edge but all feature the return to the player.
Why Does The House Edge Matter?
Knowing the house edge of a game helps you understand how much players lose over time. You can use this information to make informed decisions about which games to play and how to manage your bankroll.
For example, games with a higher edge, such as slot machines, might offer thrilling gameplay and payouts of 5,000x or higher. However, these appealing characteristics are balanced by a higher cost in the long run.
Handy Tip: Practicing responsible bankroll management whilst playing casino games is very important to stay in control of your activity. Since the house edge is statistically likely to take over the longer you play, you should set loss limits and a reasonable profit target. You should stop playing if you surpass either of these thresholds to foster safer gambling practices.
However, games like blackjack and baccarat give UK players a better chance to stay in the game for longer. This is possible even though their payouts are fairly low. Deciding which games to play is a personal choice, but being aware of key elements, including the house edge, ensures that it’s based on factual data.
Top Tips To Minimise The Casino’s Advantage
While the house edge is a fixed feature of almost every casino game, there are strategies that you can implement to minimise its impact.
Learn Optimal Strategy
Games like blackjack and video poker reward players who take time to learn and implement the best possible strategies. These strategies are more likely to work since they are based on a finite number of possibilities.
Stick to Low-Edge Bets
If you’re playing games with different bets and corresponding house edges, such as craps or baccarat, you should choose the bets with the lowest edges. In craps, this would mean betting on Pass Line or Don’t Pass, while in baccarat, you’d be best off betting on the Banker.
Avoid High-Edge Bets
Be wary of bets with high house edges even though their potential payouts may be alluring. A baccarat tie bet, for example, might have a payout of 8:1 but the edge is 14.36%. Similarly, in American Roulette, the five-number bet pays 6:1 but the edge is 7.89%.
Handy Tip: There is no way to eliminate the house edge so you should understand that you can lose money while gambling online. Practice responsible gambling by only wagering funds you can afford to lose and never try to chase losses since, over time, the house edge becomes increasingly pronounced.
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Resources
- https://itechlabs.com/compliance-testing/rng-testing/
- https://www.gamcare.org.uk/understanding-your-gambling/safer-gambling/
