Understanding the House Edge

Understanding the House Edge Everyone knows that casinos make their money through the 'House Edge' but many are confused by what this actually means. Well, Online Casino Reports is about to demystify the term.

By Sharona B | Oct 28, 2009

House Edge, Casino, Odds

Junior High

Lessons: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12

In This Lesson

What is it?How much is it?How do I find out what the House Edge is?How do I Use the House Edge?

What is it?
Basically, the House Edge is simply the built in profit that casinos expects to make on every bet, over the long term. It is also referred to as the Casino Advantage.

How much is it?
It depends on the bet. Individual wagers have different probabilities of winning (and losing). The House Edge is expressed as a percentage and it is the difference between the True Odds and your winnings.

True Odds would mean that you got 100% of your bet; i.e. a dollar back for every dollar wagered. In casinos however, this is not the case. Roulette tends to have a House Edge of around 5%. This means that the casino keeps 5¢ of every dollar bet. Conversely, the player receives 95¢ for every dollar bet.

How do I find out what the House Edge is?
The House Edge is displayed with the betting odds for all to see. It varies for different casino games and different bets.

House Edge Charts provide a summary of all their games. All except for Blackjack and Video Poker have set odds. These two are exceptions because the advantage can shift from player to house depending on the number of decks used, the draw of cards and the skill of the player.

How do I Use the House Edge?
The House Edge is the casino being transparent. It allows players to make informed choices, such as comparing games and selecting those with a lower house edge.

The House Edge shows the average profit made by the casino on all bets by all players.

Junior High