Understanding The House Edge


House Edge 101: Understanding The Casino Advantage

Have you been inside a casino? Casinos are described by different people in various ways. Some would say it’s a place of fun and excitement, while others would describe it as an adult Disneyland. There are a lot of possible distinctions, but one thing is certainly true—it is a business, real business compared to the normal online gambling games such as togel online and others.

The goal of every casino is to obtain as much cash as possible from the client, and see them go home happy and satisfied.

I’m sure at this point you’re already very curious. How can a casino business get money from you? Is cheating part of their business strategy? Definitely not!

Casino professionals don’t need to cheat. Why? Because casinos have built-in profits on each bet. This is called Casino Advantage or House Edge.

Each bet customers make gains a certain probability of losing and winning. For instance, if you bet on a coin flip, the probability of tails or heads is 50-50. Good bet, right? If you want to bet $1 and was paid $1 upon winning, then, you would be given or paid true odds.

If the local casino only gave you 93 cents for every win instead of $1, then we can say that 2.5% is the house edge. Basically, house edge is the difference between the odds the casino pays you upon winning, and true odds.

Casino Advantages are fixed, except for Video Poker and Blackjack. Blackjack and Video Poker have positive paybacks. It highly depends on the player’s skill, and the payback table’s rules.

Let’s look at the Roulette table. 5.26% is the house edge for the double zero. How do we figure out the edge? In a casino roulette game, aside from the 00 and 0, there are also 36 numbers. What are your odds of winning? 37 or 38 to 1. In case of a win, you will get a payment of 35 for your bet. If you keep your dollar, the casino will pay you an additional $35.

Let’s do the math. $2 is the difference (subtract 36 from 38). Divide $2 by 38 (true odds), then it will result a 5.26% house edge. Therefore, even if you cover all numbers in the layout, you will still lose cash.

These are obviously good odds, but for the casino, not you. Do you love paying Big Six, Craps or Roulette? Then, you should know that their results will never change. They all have fixed percentages—one spin or roll can never modify the outcome. There will always be 12 numbers in one dice, and 38 on a roulette.


Blackjack, however, belongs to a different category. Why? Because each time a card comes out, it changes the remaining cards. The advantage can thus change from you, as a player, to the house.



So, it becomes clear now that casinos don’t really cheat to obtain money from their customers. You don’t need to worry, though. You will not lose all the time because if you do, of course, you will not come back.