In the dazzling world of casinos, every game is designed with an invisible advantage known as the “house edge.” Whether you’re a seasoned gambler or a curious newcomer, understanding the concept of the house edge is essential to making informed decisions and potentially walking away with a smile on your face.
On this page, we’ll delve into the intricacies of the casino house edge, demystify its significance, and unveil the best casino games with the lowest house edge.
What Is a House Edge In a Casino?
The house edge, also known as the casino advantage, is a term used to describe the mathematical advantage that the casino has over the player in any given game. It’s expressed as a percentage, indicating the average gross profit the casino expects to make from each bet.
In more practical terms, the house edge is a measure of how much the casino expects to win, on average, from each bet placed by the player.
It’s a concept universally acknowledged and accepted in international casino gaming. The house edge is not a cheat or a trick; it’s simply the way casinos ensure their survival and profitability.
How Do Casinos Have a House Edge?
Every casino game, from slot machines to table games like blackjack and roulette, has a built-in house edge. This advantage is embedded in the rules of the game and the payouts for each bet. The house edge influences the odds, payouts, and, ultimately, the profitability of the game for the casino.
For example, in European roulette, the wheel has 37 pockets (0 to 36). If you place a bet on a single number, the true odds should be 36 to 1. However, the casino only pays out 35 to 1. The difference between the true odds and the payout odds is the house edge.
House Edge Example: 2% House Edge
To illustrate how the house edge works, let’s consider a hypothetical game with a 2% house edge.
If a player bets £100, the casino expects to pay back £98 on average, keeping £2 as profit.
It’s important to note that this is an average figure. In the short term, a player could win big or lose everything; however, in the long run, the house edge ensures the casino will always make a profit.
What Game Has The Lowest House Edge?
Different games have different house edges, and some games offer better odds for the player. For instance, blackjack is renowned for having one of the lowest house edges of any casino game, especially when played with perfect strategy. A well-informed blackjack player can reduce the house edge to as low as 0.5%.
Baccarat is another game that offers a favourable house edge. When betting on the banker, the house edge is around 1.06%, making it one of the best bets in the casino.
What Is The House Edge of a Slot Machine?
Slot machines are incredibly popular in casinos; however, they have a significantly higher house edge compared to table games. The house edge for slot machines can range from 2% to 15% or even more, depending on the specific machine.
Despite the high house edge, slot machines are attractive to players due to their simplicity and the possibility of winning a large jackpot with a small initial bet.
When it comes to slot machines, however, the house edge is more commonly referred to as RTP, which stands for Return To Player.
So, on a slot machine, if you were to see an RTP figure of 95%, this means that, on average, 95% is returned to the player & 5% is kept by the casino.
Naturally, players tend to seek out the highest RTP slots as, in theory, these machines should return more to them over a period of time than a lower RTP machine.
But remember, slot machines are random & therefore, over the short term, the true RTP figures achieved can vary dramatically due to potential jackpot wins, etc.
The Bottom Line
The house edge is a crucial concept to understand if you’re planning to visit a casino. It’s the mathematical advantage that ensures the casino will always make a profit in the long run.
By understanding the house edge and choosing games with the lowest house edge, you can increase your chances of walking away a winner.
However, remember that gambling should primarily be a source of entertainment, and it’s important to gamble responsibly.