The Role of House Edge in Casino Games

No matter if you play slots, blackjack, roulette, or other games, the house edge affects your chances of winning. Some games give you better odds, while others make it harder to walk away with a win.

In simple terms, the house edge is the online casino’s advantage in each game. It’s a percentage that decides how much the casino expects to keep from the total bet over time.

We’ll explore how the house edge works in different games and how you can use this knowledge to your advantage.

What Is House Edge?

House edge is the casino’s advantage over you. It’s the built-in profit margin for the online casino, and it’s what over time ensures that the casino will make money.

This doesn’t mean you can’t win, but it does mean that the odds are always slightly in the casino’s favour.

For example, if a game has a house edge of 5%, the casino will keep $5 for every $100 wagered. This doesn’t happen every game round or session, but on average, long term and accumulated for all players, this number will be correct.

For example, if you bet on a single number in European Roulette, the payout is 35 to 1. However, there are 37 pockets on the wheel (1-36 plus a single zero), so the real odds of winning are 36 to 1.

This difference between the payout odds and the true odds is the house edge. In European roulette, the house edge is about 2.7%.

In blackjack, the house edge depends on how you play. If you follow the basic blackjack strategy (making the mathematically best decisions), the house edge can be as low as 0.5%. However, if you don’t play optimally, the house edge will be higher.

House Edge in Different Games

The house edge varies across casino games, and knowing this can help you make better choices. Let’s look at the house edge in some of the most popular online casino games.

• Slots: The house edge in pokie machines can vary widely depending on the game. Typically, it’s around 5-6%, but it can be as low as 1% or as high as 15%. In slots, instead of listing a house edge, the games will list a return to player (RTP) percentage. A house edge of 5% will be listed as an RTP of 95%.
• Blackjack: Blackjack has one of the lowest house edges, typically around 0.5% when you play with basic strategy. This makes it one of the most player-friendly games in the casino. However, if you don’t follow the right strategy, the house edge will increase.
• Roulette: In European Roulette, the house edge is 2.7%, while in American Roulette, which has an extra “00” pocket, the house edge jumps to 5.26%. The extra pocket in American Roulette increases the casino’s advantage, so playing European Roulette is always a better bet.
• Baccarat: Baccarat has a low house edge, especially if you’re betting on the banker bet, which is about 1.06%. The player bet has a higher edge at around 1.24%. If you bet on a tie, the house edge increases to about 14.4%, making it risky.
• Craps: Craps offers some bets with low house edge. For instance, the pass line bet has a house edge of only 1.41%, while the don’t pass bet has an edge of around 1.36%. However, other bets in craps can have much higher edges, so it’s important to know the applicable edge for each wager.

Importance for Players

The house edge has a direct impact on your outcomes as a player, because it represents the theoretical advantage the casino has over you in the long run.

While you can still win in the short term, the house edge means that, on average, the casino will always win if you play long enough.

For example, in games with a high house edge, like some slot machines or American Roulette, the odds of winning are less favourable.

Over time, you’re likely to lose more money compared to playing games with a lower house edge. It doesn’t mean you can’t win a big payout, but it means that the more you play, the more likely you are to lose your winnings.

On the other hand, in games with a lower house edge the long-term advantage the casino has is smaller. This means you might get longer playing sessions for your money, and your losses may be smaller compared to games with a higher house edge.

The house edge also affects the volatility of your wins. In games with a high house edge, like slot machines, your results can swing wildly between big wins and losses.

In games with a low house edge, like blackjack or baccarat, your bankroll tends to stay more stable.

The Strategies and Games You Should Choose

When it comes to game strategies, the house edge plays a key role. Consider it when deciding which approach to take, which games to play, and how you manage your bankroll.

By knowing the house edge and understanding the type of game you’re playing, you can tailor your strategy to your specific game.

Game selection

A big part of your strategy should be based on the house edge of different games. Games like blackjack and baccarat, with low house edges, are better choices if you want to maximise your chances of winning over time.

Slot machines or games with side bets that come with a higher house edge offer bigger payouts, but they also increase your risk of losing in the long run.

If you’re looking for entertainment and are comfortable with higher risk, you might enjoy games with a higher house edge. If you’re more focused on making the most of your bankroll and playing to win, you should stick to games with a lower edge.

Adjusting your strategy

In games where the house edge depends on how you play, such as in blackjack, your strategy is crucial. If you play blackjack without following the basic strategy, the house edge increases, and your chances of winning decrease.

However, if you use a basic strategy, you can keep the house edge around 0.5%, giving yourself the best chance to win the most hands.

Similarly, in craps, some bets have a much lower house edge than others, so knowing which bets to make (like pass line or don’t pass) will improve your long term odds.

Betting approach

The house edge also affects how you should manage your betting. In games like roulette, the house edge doesn’t change with your strategy, but you can adjust your betting strategy.

For example, placing smaller, even-money bets (like red/black, odd/even or high/low) can help you stay in the game longer. Higher-risk bets, like betting on single numbers, can gve a large payout, but it can also quickly deplete your bankroll.

In contrast, slots are only about luck, and no strategy can lower the house edge. In these games, it’s important to manage your bankroll wisely. Set limits on your spending, and know when to walk away.

Understanding volatility

The house edge gives you the long-term odds, but it doesn’t decide how often you’ll win. This is decided by the built-in volatility of the game.

Some games have high volatility, meaning they’ll pay out seldom, but when they do, you can win big. Lower volatility means you’ll get many small wins.

When deciding which game to play, look at the house edge in combination with volatility to understand what your winning chances are both in the short and long run.

Conclusion

The house edge is a crucial factor in every casino game, as it defines the casino’s built-in advantage. Games with a lower house edge give you better chances to potentially walk away with winnings, while games with a higher house edge are riskier in the long run.

When choosing which games to play, always consider the house edge.

Opt for games where you can apply strategies, like blackjack, where following basic strategy can keep the house edge as low as 0.5%. In games like craps, stick to bets with the lowest house edge, like pass line or don’t pass.

For slots or roulette, manage your bankroll carefully, as only luck can help you beat the house edge.

Lastly, always remember that the odds are against you when playing any casino game. Therefore, focus on having fun and enjoying your casino experience.

If you win, that’s great, but understand that the likelihood of winning are always smaller than the likelihood of losing.