To better know your odds of winning and losing, it’s essential to know what a house edge is and how it works. This is a mathematical advantage in casino games that help you determine your loss over time.
And this can vary depending on the casino game, so before playing, know the house edge of your desired game. This is no secret and is widely available information that online casinos have on their website to let players know what the house edge is for every game.
A simpler way to grasp what house edge means is by understanding its name that refers to the house’s or the casino’s edge. This means that the higher the edge percentage, the higher the cut the casino gets from your bets and vice versa.
Why does it vary per casino game?
As stated earlier, each casino game has its own house edge that can help you determine the percentage of your wager you will potentially lose each round. This is because games have different gameplays, bets and payouts the casino and game developers need to factor in when deciding the house edge.
The more random the game is and the more varied its results are, the higher the house edge. A great example is slots. Its average house edge is usually around 15% and 25% since the results are all up to luck.
However, in blackjack or any card game in casinos, the results and odds are more direct since the players play against the dealer. This is why the house edge of card games is lower than other varieties of casino games, having around less than 1% depending on the game.
House edge vs RTP
An RTP measures how much a game pays back players over time. The higher the RTP, the more the game gives back to the player. On the other hand, the higher the house edge, the bigger the percentage the casino gets from your wager.
The house edge and RTP are two sides of the same coin in the sense that the latter reveals the player’s chances of winning while the former reveals how much the casino wins. To assure players of the games’ fairness and accuracy, both the house edge and RTP are measured by a computer program so there’s no way to cheat and predict the programming.
House Edge calculation
A house edge is calculated quite straightforwardly. The percentage they put out of each game is the exact percentage a player loses on their wager. For instance, if the house edge of a specific game is 2.16%, the player loses 2.16% of their initial wager.
RTP calculation
Compared to the house edge, the RTP is calculated in reverse. The RTP is calculated differently depending on the casino game. For table and card games, it is derived by subtracting the house edge from a hundred. For example, a game with a 2.7% house edge has an RTP of 97.3%. The RTP in slot games, on the other hand, is determined by the game developers after running multiple test spins.
House edge of major casino games
Each casino game has its house edge percentage but can vary depending on the casino. Three factors can influence house edge estimation and these are software, variant (the type of game) and bets. So when playing in different casinos, you can expect different percentages of the house edge.
However, there are generally accepted averages used in most online and physical casinos. You can find listed below the general house edge percentage for major casino games:
Blackjack
Blackjack has one of the lowest house edge percentages in casino games that largely depend on the number of decks used in the game. A single deck holds an average house edge of 0.17% while an eight-deck can increase it up to 0.65%.
Roulette
When it comes to luck and chance, roulette is one of the most favoured casino games whether it’s online or physical casinos since it’s simple and has one of the lowest house edge percentages.
Roulette has tons of variations and each may vary in terms of casino advantage. The two most popular variations of roulette are European and American. The European variation has an average of 2.7% and the American Variation has about 5.26%. The new addition, the triple zero variants has about 7.69%. This is why most players prefer European roulette.
Poker
Poker is one of the most played casino games both on online or physical casinos. And just like roulette, poker has a wide variety of variants, all with their own house edge percentages. The two most popular poker variations are The Caribbean Stud that has about 5.22% house edge and Hold’em with 2.16%. So if you’re a beginner who’s interested in poker, try the Hold’em variant first since it’s simpler, more fun to play and has a lower house edge.
Baccarat
Baccarat is an easy game that offers only two main bets, giving you an almost 50% chance of winning every round. This guarantees a low house edge and is the reason why it’s a favourite among high-rollers.
However, the house edge for baccarat changes depending on the deck and bet. An eight-deck variant has about a 1.06% house edge for Banco win and a 1.24% house edge for Punto win. Also, there’s a 14% house edge when it comes to the tie bet. For side bets such as insurance, this can go lower or higher than standard betting depending on the casino.
Slots
When it comes to slots, there is simply no standard house edge. And with tons of slot variations, its house edge can range from 2% to 15%! The only way to know the game’s house edge and how much of your bet goes to the casino is to check the slot’s rules which you should do first before playing.