Casino House Edge Explained
Ever wondered how casinos make a profit? It's all down to players losing bets right? Actually no. Casino games all have a built-in advantage that works to the casino's favor. It's called the House Edge and in this guide we're going to tell you all about it - and how you can beat it.
What Is House Edge?
The house edge is also known as the casino advantage. And it's something that exists on every table game, lotto, or slot in a casino online or on land.
House edge tells you:
This casino advantage is the product of the games themselves and not set by individual casinos. So no matter where you choose to invest your dollar, if you're betting on casino games, the fact is you can't escape the house edge.
Using Your House Edge Knowledge
The great thing about the house edge (from a player's point of view) is that it can be used as a guide to tell you which games are the most profitable.
Games with a high house edge will obviously pay out less on average over time compared to those that have a house edge that's lower. So using this information - which is readily available - you can avoid getting stung by games that give the casino a massive advantage over the player.
Game Comparison & Recommendations
This casino advantage is the product of the games themselves and not set by individual casinos. So no matter where you choose to invest your dollar, if you're betting on casino games, the fact is you can't escape the house edge.
| Type Of Casino Game | House Edge |
|---|---|
| American Roulette | 5.26% |
| Baccarat | 1.01% - 15.75% |
| Blackjack | 0.5% |
| Craps | 0 - 16.67% |
| Keno | 20 - 40% |
| Slots | 2 - 15% |
| Video Poker | 0.46% |
| Caribbean Stud | 5.22% |
| Hold'em | 2.36% |
| Sic Bo | 2.78 - 33.33% |
You'll notice that in some cases the house edge is variable. This isn't down to the casino, but certain conditions within the game itself.
The edge is for classic blackjack played with a single 52-card deck, where face cards count as 10s and aces as 11 (or 1 if the ace would cause the player to naturally bust).
The edge differs depending on whether you're betting on the banker, player or a tie result to win.
A player's own strategy and the number of checks, raises and folds, across a series of hands, is incremental to Hold'em's house edge.
How much the house stands to gain is dependent on the individual action of each player taking part in a hand.
- Blackjack
- Baccarat
- Hold'em Poker
- Caribbean Stud
Edge is affected by the number of reels and paylines a slot machine has, and how many of those paylines a player chooses to play.
The house edge is affected by the inclusion of a double 00 pocket on the wheel that doesn't exist in European and French roulette.
The edge varies depending on the house rules and how many numbers a player marks on their Keno card out of the total available.
The edge is dictated by the individual betting possibilities in Craps, such as pass/don't pass, come/don't come, odds, place, and field bets.
Paytables and side bets affect the edge the house has over players on each individual video poker machine.
The edge you'll play against in Sic Bo is determined by the odds and table layout you're playing with as well as the bets you make.
- Slots
- American Roulette
- Keno
- Craps
- Video Poker
- Sic Bo
Slots
Unlike some casino games, where skill and expertise can improve your chances of winning, with online slots every player is equal and there's no way to better your odds. All you can do is select the number of paylines you want to play, hit go, and hope for the best result.
Paylines & House Edge
Ever wondered why online and offline casinos have so many slots games? It's because slots offer players a relatively low RTP, so this is where the casino stands to make more profit - or in other words its biggest house edge.
In slots players win coins by matching reels across a winning payline. And while today's modern video slots, that offer anything between 20-100 paylines, seem great because they offer more chances for players to win. The fact is the more paylines a game has, the bigger the impact on house edge.
Let's take the example of a machine with 20 paylines. Play all 20 each time and your chances of landing a win are maximized. But, play just 10 paylines, and you've effectively just cut your odds by half. And by increasing your chances of losing you're incrementally increasing the casino's chances of winning.
Our Recommendations
If you're dead set on playing casino slots, here are a couple of tips to keep in mind:
Progressive Jackpot Slots
Progressive jackpot slots play out just like a regular slot game for the most part. The key difference is that, as well as the regular small wins you can make by matching symbols across the reels, you're also competing against a network of other players to land a huge jackpot payout.
At the top progressive games online this can be upwards of millions of dollars, so we're talking truly life-changing sums. Just be careful as, to qualify, some progressives require players to play the max bet across the max number of paylines each spin.
Our Recommendations
Again, with progressive jackpot slots it pays to seek out the titles with the best RTP, which in 2023 include: Mega Fortune by NetEnt (96.6%), Gold Rally by Playtech (97.01%), and Hall of Gods by NetEnt (95.5%).
Whether the jackpot is local to the casino, or across a network, can also affect a progressive slot game's RTP. In the case of Arabian Nights by NetEnt, the RTP is 95.60% if local, versus 95.2% if shared. It's also worth avoiding progressive slots if you don't intend to play for the jackpot, as this can bring the RTP down dramatically - 90.6% in Arabian Night's case.
Blackjack
You can now find several variations of traditional Blackjack, both online and at offline casinos in the U.S. How many decks you play with, as well as any rule differences, all have a knock-on effect to blackjack's house edge.
Standard House Edge
Blackjack is a game that relies (in part) on a player's knowledge of what it takes to win, as much as the luck of the cards drawn. For that reason, the 0.5% house edge is considered a general indication - based on playing blackjack perfectly using the standard rules and basic strategy.
If you have no clue about blackjack whatsoever, then it would be fair to say that the house edge would increase a little. As your inexperience is more likely to lead you to poor decisions that see you go bust or lose.
Using Strategy
Like poker, blackjack is a game where knowledge and judgment yield power. To that end, several strategies have surfaced which promise players a way to protect their bankroll and minimize the house's edge.
Card Counting
Card counting in blackjack involves assigning a numerical value to each card in the deck and keeping a running count of the cards as they're dealt. The most common card counting strategy is the hi-lo system, whereby 2-6 cards are given a value of +1, 7-9 cards count as 0 and 10, Ace and faces are -1. If the running count goes up than players know they're at an advantage, but when it's down the advantage is in the casino's favor.
Roulette
With roulette the house edge goes up or down depending on the style of game you're playing. American roulette typically offers players the worst returns over time, while a lower house edge can be found if you play roulette the French or European way. There are even a number of roulette strategies that players have employed in an attempt to beat the casinos at this popular game.
American Roulette
In American roulette the wheel has 38 pockets, including a 0 and 00 pocket. The below table shows the house edge, and the payout, on all possible bets players can place on an American roulette table.
| Your Bet | The Payout | House Edge |
|---|---|---|
| Red or Black | 1:1 | 5.26% |
| Odd or Even | 1:1 | 5.26% |
| 1-18 | 1:1 | 5.26% |
| 19-36 | 1:1 | 5.26% |
| 1-12 | 2:1 | 5.26% |
| 13-24 | 2:1 | 5.26% |
| 25-36 | 2:1 | 5.26% |
| 6 line | 5:1 | 5.26% |
| 1st 5 (0-00-1-2-3) | 6:1 | 7.89% |
| 4 numbers | 8:1 | 5.26% |
| 3 numbers | 11:1 | 5.26% |
| 2 numbers | 17:1 | 5.26% |
| Single number | 35:1 | 5.26% |
Calculating the House Edge
If you want to work out how the house gets its edge you only need look at true odds of an outcome occurring versus what the house will pay out for it.
Let's take the example of correcting predicting a single number bet:
- An American roulette has 38 pockets in total: pockets 1-36 + 0 + 00 =38.
- So the true odds of guessing one single number correctly are 38:1 but the house only pays out odds of 35:1.
- So on a $1 bet the player wins back $36. $2 less than the true odds would pay back.
- That $2 represents the house edge. Which in this case would be calculated as: 2 x (1/38) = 0.0526 - or 5.26%.
You can use this basic principle to work out the house edge on all bets in American roulette.
The difference comes with the first five number bet (only possible on the American wheel). This bet incidentally is known in gambling circles as the "sucker" bet because the house odds jump up to 7.89%. So it's never recommended to take this bet.
European Roulette
European roulette follows the same principles of American roulette but with one key exception - the wheel has no 00 pocket. The absence of this one pocket might not seem significant, but it has a huge affect on the edge that the house has over players.
To illustrate, let's take a look at the house edge offered on different bets in European Roulette:
| Your Bet | The Payout | House Edge |
|---|---|---|
| Red or Black | 1:1 | 2.7% |
| Odd or Even | 1:1 | 2.7% |
| 1-18 | 1:1 | 2.7% |
| 19-36 | 1:1 | 2.7% |
| 1-12 | 2:1 | 2.7% |
| 13-24 | 2:1 | 2.7% |
| 25-36 | 2:1 | 2.7% |
| 6 line | 5:1 | 2.7% |
| 1st 5 (0-00-1-2-3) | N/A | N/A |
| 4 numbers | 8:1 | 2.7% |
| 3 numbers | 11:1 | 2.7% |
| 2 numbers | 17:1 | 2.7% |
| Single number | 35:1 | 2.7% |
As you can see, the same bets in European roulette only have a 2.7% house edge. Meaning, if you play the European way, you'll actually make more money back over time, compared to playing American roulette.
If we look at the house edge as a percentage shaved off of every dollar invested into a casino then in European roulette for every dollar you spend you're losing 0.027 cents versus American roulette where you're down 0.0526 cents on every dollar.
This decrease of almost half in the house edge rests entirely on the absence of the American 00 pocket from the European wheel. By taking away this pocket the true odd possibilities reduce to 37:1 for single number bets, which in European roulette still pay out 35:1. This reduces the difference between the true odds and casino odds to just 1 unit. So, using our house edge math we can calculate the edge as 1 x (1/37) = 0.027 or 2.7%.
French Roulette
French Roulette by comparison is very similar to its European cousin. The wheel follows suit with 1-36 red and black pockets, and just one 0 pocket, but there are two rules within the game that reduce the house edge even further.
| Your Bet | The Payout | House Edge |
|---|---|---|
| Red or Black | 1:1 | 1.35% |
| Odd or Even | 1:1 | 1.35% |
| 1-18 | 1:1 | 1.35% |
| 19-36 | 1:1 | 1.35% |
| 1-12 | 2:1 | 2.7% |
| 13-24 | 2:1 | 2.7% |
| 25-36 | 2:1 | 2.7% |
| 6 line | 5:1 | 2.7% |
| 1st 5 (0-00-1-2-3) | N/A | N/A |
| 4 numbers | 8:1 | 2.7% |
| 3 numbers | 11:1 | 2.7% |
| 2 numbers | 17:1 | 2.7% |
| Single number | 35:1 | 2.7% |
In French roulette, the house edge is reduced to just 1.35% for all bets that payout even money. Making French roulette the best one for players to seek out online and at land based casinos.
The reason the edge is so low on even money bets in French roulette boils down to two things:
It's the inclusion of these two unique rules, and the absence of a 00 pocket on the roulette wheel, that makes it the most attractive roulette style for those gamblers looking to beat the house at their own game.
Video Poker
Video poker is played on consoles at land casinos, or virtually online. Instead of going up against other players around a table, it's just you versus the machine. Today there are hundreds of different video poker variations to choose from, including progressive and multi-hand games - all offering unique paytables and different house edges.
Playing Perfect Strategy
Just like with regular poker, knowledge of poker play can help you make better calls and judgments in video poker games - improving your player edge over the house. Played perfectly, here are the expected returns you stand to yield on the main video poker variations:
As you can see, played well Video Poker offers players the chance to net some high returns, and in some cases the perfect strategy will even see you snatch the advantage over the house.
As you can see, played well, Video Poker offers players the chance to net some high returns, and in some cases the perfect strategy will even see you snatch the advantage over the house.
Our Recommendations
Perfect strategy will help you win at Video Poker, but you can also maximize the amount you take home by sticking to these simple rules:
Video poker can be one of the most profitable games at a casino, if you know how to play and you seek out the machines offering the best RTP.
Baccarat
Baccarat may not be as popular as some casino games, and its higher stakes may put some low-limit players off. But, the game is actually very simple, and played well the house edge can be as low as just 1.01%. So it offers players a good chance of seeing almost 100% RTP on their wagers.
Here you can compare the house edge in different deck games, based on the bet you make.
| No of Decks | Player Wins | Banker Wins | Tie |
|---|---|---|---|
| 1 | 1.29% | 1.01% | 15.75% |
| 6 | 1.24% | 1.06% | 14.44% |
| 8 | 1.24% | 1.06% | 14.36% |
As the statistics demonstrate, the tie bet is consistently the one where the house has a huge advantage over the player regardless of the number of decks in play. Whereas the bet with the lowest house edge is banker to win.
Side Bets
One of the ways casinos have sought to make baccarat more interesting is by offering the option of side bets on hands. Which can be made instead of, or on top of, standard baccarat bets. These include:
Reducing House Edge
In baccarat you're essentially betting blind on whose hand you think will add up to a total closest to nine. So whether you win or lose depends on the luck of the draw. But, there are a couple of things you can do to help your chances and minimize too many hits to your bankroll.
One other thing to note about baccarat is that players typically pay a commission on banker bets that come good, but this is because the odds are stacked in the player's favor. So even factoring this in, backing the banker to win is still the most advisable course of action for any baccarat bettor.
Craps
The craps table is usually the hive of excitement at a casino. As players and spectators eagerly anticipate the roll of the dice. But multiple betting options mean this classic game has a wider house edge than any other.
Bets & Their House Edge
The house edge in craps varies considerably, from nothing at all, to a whopping 13.9% and how much you'll forfeit to the house over time all boils down to the bets you place.
Here's a look at the most popular Craps bets and their respective HE.
| Bet | Payout | House Edge |
|---|---|---|
| Pass | 1:1 | 1.41% |
| Don't Pass | 1:1 | 1.36% |
| Pass Odds | Varies | 0% |
| Don't Pass Odds | Varies | 0% |
| Come | 1:1 | 1.41% |
| Don't Come | 1:1 | 1.36% |
| Come Odds | Varies | 0% |
| Don't Come Odds | Varies | 0% |
| Buy Bets | Varies | 4.76% |
| Hardways | 7:1 or 9:1 | 11.1 or 9.09% |
| Big 6 or 8 | 1:1 | 9.09% |
| Any 7 | 4:1 | 16.9% |
| Craps | 7:1 | 11.1% |
While the odds bets at 0% HE obviously seem the most attractive, they can only be made following a Pass/Don't Pass or Come/Don't Come bet. So the actual edge is influenced by the odds offered on these combined bets.
Multi Roll Bets
In craps betting takes place across a process that begins with a come out roll and evolves from there. Some craps games might take place over several rolls, while others can be quickly stitched up after just one.
Multi-roll bets are craps bets that can't be settled on just one roll only. These bets include:
With multi-roll bets it's worth bearing in mind that while the lure of higher payouts might make the bet seem more attractive on the surface. In reality the house edge is an indication you'll make less money on these bets over time. Than you would do those that payout even money with a lower house edge.
Downloadable Craps Chart
Responsible Gambling
Gambling responsibly in America (whether online or offline) isn't just a case of abiding by local laws - although making sure you stay within the remit of the law in your state is a top priority.
Responsible gambling is also about making sure that you manage your bankroll carefully, never betting beyond your financial means. In addition to keeping a clear head when you gamble, and showing respect for your fellow players and casino personnel.
No one should have to feel intimidated while doing their job, or while indulging in a pastime they enjoy. So please, be sensible, respectful and responsible while taking part in casino gaming for real money. Read our guide to problem gambling for more information.
Gamblers Fallacy
Even the most levelheaded of gamblers isn't immune from gamblers fallacy. Try as you may to keep logic and reason front of mind, when you're on a hot streak, it can be easy to get caught up in the moment. Thinking that luck is on your side and losing is somehow out of the question.
That way of thinking is the definition of gamblers fallacy. It's the belief that higher forces are at work, and that winning, or losing, is down to something other than skill or randomness. The fact is casino odds are what they are. No amount of lucky rabbit's feet will swing them in your favor.
So be wary of thinking you can't lose. In gambling, there always has to be winners and losers. No one is immune. No matter how 'lucky' they might seem. Never forget, that so-called luck can change at any given second.
Discover More
Like this guide? We've got plenty more expertise and advice where this came from. Take a look at some of our other online gambling resources below. Or, try out some of our free casino games to get a sense of different casino game odds.
