House Edge

What is House Edge?

Picture this: You walk into a casino with $1,000. You plan to play slots for a few hours, maybe try some blackjack, and hopefully walk out with more money than you came in with.

Here's the uncomfortable truth: The moment you placed your first bet, the casino already knew — with mathematical certainty — how much of your money they would keep.

Not which hands you'd win. Not when you'd hit a jackpot. But over time, on average, exactly what percentage flows to them.

That percentage is called the house edge — and understanding it is the difference between informed gambling and lighting money on fire.

In simple terms: House edge is the average percentage of each bet the casino keeps over time. A 5% house edge means you lose $5 for every$100 wagered, on average.

After reading this, you'll know exactly what you're paying to play — and which games give you the best (and worst) odds.

TL;DR - Quick Reference

The formula: House Edge = 100% − RTP (Return to Player)

Understanding House Edge for Beginners

House edge is the casino's built-in profit margin on every game. It's why casinos are profitable businesses, not charities.

The Coin Flip Analogy

Imagine a fair coin flip game:

• Heads: You win $1
• Tails: You lose $1
• House edge: 0% (fair game)

Now imagine the casino version:

• Heads: You win $0.95
• Tails: You lose $1
• House edge: 2.5%

That tiny difference is why casinos build marble floors and golden chandeliers. Over millions of bets, that 2.5% adds up to billions.

House Edge vs RTP: Two Sides of One Coin

RTP (Return to Player) = percentage returned to players House Edge = percentage kept by casino

$House\ Edge = 100\% - RTP$

Higher RTP = Lower house edge = Better for you.

The Mathematics of House Edge

How House Edge Is Calculated

House edge comes from the difference between:

• True odds (fair probability)
• Payout odds (what the casino pays)

Roulette Example (European):

• 37 numbers (0-36)
• Bet on a single number: Pays 35:1
• True odds of winning: 1/37 = 2.7%
• Fair payout would be: 36:1

$House\ Edge = \frac{1}{37} \times 36 - \frac{36}{37} = \frac{36 - 36.97}{37} = 2.7\%$

The casino pays 35:1 instead of fair 36:1. That difference is the house edge.

American Roulette:

• 38 numbers (0, 00, 1-36)
• Still pays 35:1

$House\ Edge = \frac{38 - 36}{38} = 5.26\%$

The extra zero doubles the house edge. Always play European if available.

House Edge by Game: Complete Rankings

Tier 1: Best Odds (Under 2%)

Strategy matters. Blackjack has 0.5% edge with perfect strategy, but 2-5% with "gut feeling" play.

Tier 2: Reasonable Odds (2-5%)

Tier 3: Poor Odds (5-10%)

Tier 4: Money Pits (10%+)

Why House Edge Matters

1. The Compounding Effect

House edge applies to every bet, not just your initial bankroll. The more you play, the more you lose.

Example: $100/hour slots with 8% house edge

You walked in with $1,000 and expected to lose$800. The casino knew this before you placed your first bet.

2. Wagering Requirements Multiply It

This is where house edge becomes brutal for bonus hunters.

Bonus Example:

• $100 bonus with 40× wagering requirement
• Total wagering required: $4,000
• If playing 6% house edge slots:

$Expected\ Loss = \$4,000 \times 6\% = \$240$

Your "$100 bonus" actually costs you$140. The bonus EV is negative.

Use our Wagering Calculator to calculate if bonuses are worth claiming.

3. Time at the Table = Money Lost

House edge is per bet, not per hour. But more time = more bets = more losses.

Slots' speed kills. 600 spins/hour at 8% edge destroys bankrolls faster than any table game.

How to Minimize House Edge

1. Choose Low-Edge Games

Simple: play blackjack, baccarat, or craps instead of slots and keno.

$1,000 wagered:

• Blackjack (0.5%): $5 expected loss
• European Roulette (2.7%): $27 expected loss
• Slots (8%): $80 expected loss

16× difference between best and worst common games.

2. Learn Basic Strategy

In blackjack, the difference between perfect strategy and "gut feeling" is massive:

Memorizing basic strategy is essentially free money — it drops house edge by 4-5%.

3. Avoid Sucker Bets

Every table game has "trap" bets with horrible odds:

Rule: If a bet pays much more than others, it's usually a trap.

4. Shop for RTP (Slots)

Slot RTP varies wildly between machines and casinos:

Always check RTP before playing. The difference between 92% and 97% RTP is enormous over time.

5. Slow Down Your Play

Fewer bets = less exposure to house edge.

Strategies to slow down:

• Play table games instead of slots
• Chat with dealers and other players
• Take breaks every 30-60 minutes
• Set a loss limit and stick to it

Common House Edge Mistakes

Mistake #1: Believing in "Due" Outcomes

❌ Wrong: "Red has hit 10 times in a row. Black is due!"

✅ Right: "Each spin is independent. House edge is 2.7% whether red hit 10 times or 0 times."

Why it's wrong: This is the gambler's fallacy. The wheel has no memory. House edge doesn't change based on history.

Mistake #2: Thinking Betting Systems Beat House Edge

❌ Wrong: "Martingale doubles my bet after losses. I can't lose!"

✅ Right: "Martingale doesn't change expected value. It just reshapes variance — more small wins, occasional catastrophic losses."

Why it's wrong: No betting system changes house edge. You're still losing the same percentage long-term, just with different short-term patterns.

Mistake #3: Ignoring Bet Size Impact

❌ Wrong: "House edge is 5%, so I'll lose $5 on my$100 bet."

✅ Right: "House edge applies to total wagered, not bankroll. If I bet $100 fifty times, I'll wager$5,000 and lose ~$250."

Why it's wrong: House edge applies to every bet, not just initial bankroll.

Mistake #4: Not Checking RTP on Slots

❌ Wrong: "All slots are basically the same."

✅ Right: "This slot has 88% RTP (12% edge). I'll look for one with 96%+ RTP (4% edge)."

Why it's wrong: Slot RTPs vary by 10+ percentage points. Always check before playing.

Can You Beat the House Edge?

Short Answer: Usually No

House edge is mathematically baked into every game. You cannot "overcome" it through skill on most games.

Exceptions (Limited):

1. Card Counting (Blackjack)

• Can flip edge to player (~0.5-1.5%)
• Casinos ban counters
• Requires significant skill and practice

2. Video Poker (Select Machines)

• Some "full-pay" machines are +EV with perfect strategy
• Extremely rare and getting rarer
• Requires memorizing complex strategy

3. Progressive Jackpots (At Extreme Levels)

• Very high jackpot levels can make EV positive
• Still involves massive variance
• Not a reliable strategy

4. Promotional Offers

• Loss rebates, free play, deposit bonuses
• Can offset house edge temporarily
• Read terms carefully

5. Poker

• You play against other players, not the house
• House takes rake (typically 2.5-10% of pot)
• Skill determines long-term results

For 99% of Casino Visits

Accept house edge as the cost of entertainment. Set a budget, enjoy yourself, and don't expect to win long-term.

Related Concepts

Understanding house edge connects to several critical casino concepts:

• RTP (Return to Player): The flip side of house edge. RTP = 100% − House Edge.
• Volatility/Variance: Determines how "swingy" results are. High volatility = bigger wins and losses, but same house edge.
• Wagering Requirements: Multiply house edge impact. High wagering × high house edge = negative EV bonuses.
• Expected Value (EV): House edge is negative EV from the player's perspective.
• Vig/Juice: The sports betting equivalent of house edge.

Practical Tools

Calculators for House Edge Analysis

Use these tools to understand and minimize house edge impact:

1. House Edge Calculator — Calculate edge for any game/bet
2. RTP Calculator — Convert between RTP and house edge
3. Session Simulator — Simulate gambling sessions
4. Wagering Calculator — Calculate bonus expected value
5. Bankroll Calculator — How long will your bankroll last?

House Edge-Aware Strategy

For recreational gamblers:

• Set a strict budget you can afford to lose
• Choose lower house edge games (table games > slots)
• Learn basic strategy for blackjack
• Think of losses as entertainment cost

For advantage players:

• Focus on lowest edge games with skill elements
• Hunt for +EV promotions and bonuses
• Consider video poker with optimal strategy
• Track every session to verify expectations

Key Takeaways

• ✅ House edge is casino profit margin — Built into every game
• ✅ Lower edge = better odds — Choose wisely
• ✅ Blackjack is best — 0.5% with basic strategy
• ✅ Slots are worst — 4-12% typical, check RTP
• ✅ Strategy matters — Bad play increases house edge
• ✅ Avoid sucker bets — Props, ties, insurance
• ✅ Speed kills — Slower play = less exposure

Remember: House edge doesn't mean you can't win tonight. It means the casino will profit long-term. Short sessions can go either way — that's variance. But if you play long enough, mathematics guarantees the house wins.

FAQ

If the house always wins, why do people gamble?

Variance. In the short term, anything can happen. Someone wins the jackpot. Someone goes on a heater. House edge only guarantees casino profit over millions of bets — your individual session can go either way.

Plus, gambling is entertainment. People pay for movies, concerts, and sports events. Some people pay for the thrill of gambling.

Does "due" logic work? (If red hit 10 times, is black due?)

No. This is the gambler's fallacy. Each spin, roll, or deal is independent. The roulette wheel doesn't remember previous results. House edge doesn't change based on history.

If anything, a ball landing on red 10 times suggests the wheel might be biased toward red (not that black is "due").

Are online casino edges different from live casinos?

Often lower online. Online slots typically have 95-97% RTP vs 88-92% for many Vegas slots. Lower overhead = potentially better odds for players.

However, online play is faster (more bets/hour), which can offset the better RTP. Check RTP in the game info before playing.

Do betting systems beat house edge?

No. Martingale, Fibonacci, d'Alembert, and every other system don't change expected value. They just reshape variance.

• Martingale: More small wins, occasional catastrophic loss
• Flat betting: Steady losses at house edge rate
• Both have identical expected loss long-term

Systems can be fun to use, but don't believe they overcome mathematics.

What's the best game for entertainment value?

Depends on what you enjoy:

• Longest play time: Blackjack (low edge, slow pace)
• Simplest to play: Baccarat or roulette
• Best mathematical odds: Video poker (with study)
• Most exciting: Craps (social, lots of action)
• Worst value: Keno, lottery, slot side bets

Can I become a professional casino gambler?

Extremely difficult. Unlike poker or sports betting (where skill creates edge), most casino games have fixed house edge. The few exceptions:

• Card counting in blackjack (casinos ban you)
• Advantage play in video poker (requires specific machines + perfect strategy)
• Promotional abuse (time-limited)

Most "professional" casino players are either playing poker or exploiting promotions — not beating the games themselves.

Bottom Line: House edge is the price of admission to casino gambling. Some games charge 0.5% (blackjack with strategy). Others charge 25%+ (keno). Know what you're paying, choose wisely, set limits, and treat it as entertainment. The math is not in your favor long-term — accept that, and you can enjoy the experience without delusion.