Have you ever played casino games and wondered how the casino makes a profit? You’d assume it is because of players losing bets, but that’s not completely the case. In fact, most casino games have a type of built-in advantage, called the house edge. So, what exactly is the house edge, how does it impact your odds of winning, and can gamblers outsmart casinos to win?
The house edge, also called the “casino advantage” is a factor that exists for every slot, lottery, or table game. It details how much each game pays out over its life, as well as what the returns are on a player’s bet. The house edge is used by the casino to cover the costs of hosting the game, as well as staff salaries and maintenance.
The house edge is not something that is set by the casino, instead, it is a factor of the game being played. There is a positive side though: the house edge can indicate to players which games can offer the most profit.
Games that have a higher house edge will pay out less on average when compared to games that have a lower house edge. The game’s house edge information should be readily available, meaning players can make educated choices and avoid games that will give the casino a major advantage.
The house edge is commonly expressed as a percentage. This percentage indicates the return to the casino over time, as well as the assured loss of a player’s bet. Here are some examples of popular casino games and their average house edge:
- Slots: 2% – 15%
- American roulette: 5.3%
- Blackjack: 0.5%
- Baccarat: 1% – 14%
- Craps: 0% – 16.7%
- Video poker: 0.5%
- Texas Hold’Em: 2.4%
Those games with variable house edges are due to the game’s conditions determining the house edge.
To put the percentages above into more context, if a game has a house edge of 5%, that means that for every $100 bet placed the player will lose $5 on average.
When it comes to slots, the return to player (RTP) and house edge are combined. For example, if a slot machine offers an RTP of 95%, then the house edge is 5%. The slots RTP is determined during the testing phase of the game, where thousands of spins eventually set the RTP.
Players looking for a higher RTP should consider playing online at crypto casinos. These casinos often offer better RTPs than fiat currency casinos – rarely offering an RTP below 90% – and they also offer other benefits like lower transaction fees, quicker payouts, and increased player anonymity.
It is essential for players who play slots online or at casinos to understand both the RTP and house edge numbers. For example, it will be a good idea to choose a slot with a higher RTP and lower house edge. Knowing which games offer you the best odds can make for a much more enjoyable gambling experience.
Now, you might be wondering which games offer the lowest house edge (and therefore the most potential profit). As indicated by the percentages provided above, blackjack offers the best odds. Of course, these percentages are averages and do not take into account any side bets made, like House Money in blackjack, or a player’s individual experiences.
It is possible to use the casino advantage to your advantage. This is called “casino advantage play”, and a player can turn the game odds in their favor. One way to do this is through exploiting bonuses and promotions, like free spins or deposit match bonuses. Players can take advantage of these offers by selecting games that offer the most favorable promos with low wagering requirements or higher value, and then temporarily turn the house edge in their favor.
Casinos also often offer loyal players complimentary rewards (called “comps”), like free meals, spins, tickets for entertainment, or even free accommodation. Players who use advantage play can exploit this system by playing games with a lower house edge (like baccarat or blackjack) and maximizing their time spent at the table. This can result in them earning significant rewards from the casino, while limiting their potential losses.
It is important to note that although these strategies can maximize rewards or improve odds, this is only temporary and the house generally has a long-term edge. No strategy will result in a guaranteed profit.
