The term house edge might be misleading, but in the simplest terms, it’s how much of an advantage the casino has over the player. This relates to both payouts and how often you’ll win - which also relates to Return to Player (RTP) rates, but more on that later!
The bigger the house edge, the more likely the casino is to win each round of the game. Don’t be mistaken by the low numbers, either. If a slot machine has a house edge of 15%, that doesn’t mean that it’s going to win 15% of the time. Instead…
The house edge is the amount of the wager the casino expects to take from the player each time.
House edge will almost always be displayed as a percentage, for example, the house edge of baccarat is 1%. This is because the game is very close to 50/50 odds, albeit with a small advantage to the casino in the case of tie bets.
This means that in a perfect game and perfect world, the casino will take 1% of the player's wagers. Not only that, but by using percentages, the house edge always looks so small and manageable - smart, right?
However, slot machines can have a house edge of up to 15%, meaning that from a mathematical perspective, you’re less likely to win at slots than you are at baccarat. Over a set period of time, the casino will expect to take 15% of the player’s wagers. If you start with $100, you’ll likely walk away with $85. Not $85 in winnings, or $185; just $85 in total.
House edge of casino games
The house edge of particular casino games will always vary, after all, it would be strange if they were all the same! While some are very low, such as baccarat, some are much higher and deep into the double digits.
If you enjoy a particular game though, don’t let a high house edge put you off. Casino games aren’t there to fund your retirement, they exist for entertainment, so this guide is meant for education and knowledge more than a deterrent. The house edge will only apply to long-term play on average, and most people won’t play long enough for these kinds of statistics to apply.
Casino game | House edge |
Baccarat | 1.06% - 15.75% |
Blackjack | 0.46% |
Casino War | 2.90% |
Craps | 1.36% - 16.7% |
Let It Ride | 3.51% |
Keno | 40% |
Pai Gow Poker | 2.66% |
Roulette | 1.35% - 5.25% |
Sic bo | 2.8% - 33.33% |
Three Card Poker | 3.37% |
Video Poker | 0.46% |
You might have noticed that some of these vary and that’s because each of these games have different bets or variants available. For example, French Roulette has a house edge of 1.35% because of its en-prison rules, while American Roulette has extra pockets, which raises the house edge to 5.25%.
How to beat the house edge
Going up against the house edge can be scary because it’s mathematically impossible to avoid it. That being said, there are ways to give you a fair fight against it.
Learn the game you want to play
House edge is calculated based on the customer playing the perfect game. While Craps might have a house edge of 1.41%, if you’re new to the game then the actual house edge will be something in the double digits.
If you want the lowest house edge possible, then you need to put the time into learning your casino game of choice and how it works. The particular strategy or bets you choose can have drastic implications for your odds.
Sticking with Craps, if you pick Don’t Pass or Don’t Come it’ll be 1.36%, but Any 7 is 16.9%. This means that not only does the game alter the house edge, but also the bets themselves! It’s always worth researching the game you want to play first, even if you don’t understand everything, it can give you a suggestion for which bets to try out first.
Don’t overthink it
House edge is all about maths and probability, yes, but if that’s the only way you approach the games then you could be making a mistake. Casino games by nature, and the very existence of house edge, are not there to win you money. They are there to entertain players and provide a modest thrill for people who don’t know if they’re about to lose a little bit of money or win a lot of money.
That being said, the house edge only applies to very specific situations. While RTP is calculated on a person playing with perfect strategy, house edge applies to the game over a very long period of time on average. Unless you play a lot of casino games, it’s unlikely that you’ll actually notice it in your time playing. If you’re enjoying a few games of blackjack with your friends in a casino, you probably won’t be noting down that you’ve won a certain amount of games over an hour - it’s more likely that you’ll mainly remember laughing and joking around, and maybe a win, too!
Get a grasp of modern casino hacks
It can be difficult to beat mathematical probabilities, but you can learn how to avoid those silly mistakes. We don’t mean the same ones from being able to read up about the games either, these are related more to casino rules.
For example, most casino dealers will stop drawing cards during Blackjack once they hit 17. This means that if you hit 18, it might not be worth risking another card to get closer 21 if you know the dealer is going to stand on 17 anyway. You have to balance the odds of you busting from 18 against the dealer getting a 19, 20 or 21.
Another thing to consider is how many decks are used. The more decks a croupier uses, then the higher the house edge will be. This is especially useful if there are a few different casinos in a small area and one of them uses fewer decks than the others, for example.
Overall...
The house edge is there to indicate how much you should expect to lose to the casino over time. If the house edge is 10%, then in a mathematically perfect world, the casino would take 10% of your wagers over time. Don't let that put you off your favorite game though, you're there to have fun!