House Edge: What Is It and How Does It Work in Casino Games?

This short guide will teach everything you need to know about house edge in casino games.

The fact is that the casino gambling basics are very simple and easy to understand. However, every casino game has different rules, but the fundamental principle is similar for all casinos to increase the house edge. No matter which games you choose to play. It would be best if you put a stake.

When you lose, the house takes its stake. The most interesting aspect of every casino game is the built-in advantage. So, it is very difficult to beat you if your luck is with you. The only way casinos beat you is if the odds stack in their favor. In addition, a built-in advantage of this casino game is called the house edge. In this short guide, you will learn everything you need about the house advantage of casino games.

House Edge:

It is a gambling term that is commonly used in casinos. The house edge is a percentage that shows a specific casino game’s advantage over the player. However, it is not the ratio of money you lose to the total wager. Instead, it is the average loss to the original bet. It makes it simpler for you to estimate your expected losses with a single hand.

Moreover, it is also the direct opposite of the RTP. For instance, if a casino game has 96% RTP, the house advantage would be 4%. Casinos use house advantage to make money. It can also change depending on the casino game you choose to play. 

House advantage can vary in various versions of the same casino game. Always remember that house advantage is different from a fee. In addition, you need to pay a fee every single time.

On the other hand, the house edge is theoretical. A 4% house advantage means a casino can make $4 on every $100 bet. However, it is overall calculated and becomes true after several playing hands, along with the possibility that you can beat the odds. In addition, you need to play two hands and win both times, which precisely makes casino games exciting. 

How House Edge Works in Casino Games?

Typically, the term that describes the mathematical advantage of various casino games is called house edge. So, the casinos can beat you as you play over time, resulting in a guaranteed percentage return to the casino. It also provides help to turn the casino into a profitable business. In addition, any profit the casino makes from gambling comes from the money the players pay into the game. For instance, the house edge built into the poker machine provides a house advantage on average of around 10% of your every bet.

Similarly, every casino game comes with a different house advantage percentage. This example will help you to understand how it works in casino games. Consider that you are playing Roulette and betting $1 on one particular number for every spin. A Roulette wheel has either numbers 37 or 38. In this way, your chances of winning your bet are either a 1 in 37 or a 1 in 38. Theoretically, you can win your wager once every 37 spins. In practice, it doesn’t work like that due to standard deviation and variance, but in the long run, every single number should spin roughly once every 37 spins. In addition to the $1 is a percentage of $37, which is 2.7%. It means that 2.7% is the house advantage of this particular casino game.

To determine the payout percentage, subtract the edge from 100%, which is 97.3%. However, the house advantage percentage or payout percentage is the same regardless of what bet you make at the game. Your each $100 bet at Roulette, theoretically, the house win is $2.70. The fact is that a casino would only make $2.70 for some $100 bets. One important thing to remember is that the house edge vary in various casino game.

In addition, there is an obvious advantage to playing low-house advantage casino games. It is because, with low house advantage games, there is less chance to lose over time. That’s why it is very important to consider the size of the house advantage when deciding which casino games you want to play. 


All the laws of probability are in favor of casinos. However, the house edge varies significantly among various casino games. Various games like slot machines and keno provide a higher house advantage. On the other hand, slots, and blackjack provide the lowest house advantage. Under the right set of circumstances, it can marginalize and turn in your favor.

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