Understanding House Edge in Casino Gambling

house edge casino gameThe casino gambling basics are quite simple and straightforward. Although the rules of one casino game are different from the others, the fundamental principle is more or less the same.

Whether you are playing a hand of Blackjack or spinning the Roulette wheel or rolling the dice at the Craps table or spinning on a Slot machine, you set up a betting amount and play against the casino which is also known as the house.

When you lose the game, the casino takes the stake and all your money. When you win, the casino has to pay you the winning amount, and it continues like that.

Literally, it is pretty much all you require to learn before starting to play any casino game. Of course, the gameplay rules are important, and you must have a basic understanding of how the game is played so that you don’t end up making silly mistakes.

However, in our opinion, it is advantageous when you know how casino gambling works. At the same time, you should see how the casinos make money from the players. At the same time, you should be familiar with the casino term “House Edge” and a payout percentage of every single casino game.

You should also learn how sure gamblers are able to take away large winning amounts even when the odds are against their favour. We have tried to explain everything about house edge and casino winning in this post below. So, if you are eager to learn new things and want to have a productive gambling session, you are recommended to continue reading below.

What is House Edge?

It comes as a little surprise that every single casino site whether it is land-based or online has a built-in advantage for all its games. The casino doesn’t beat players just because they get lucky but because the odds are in their favour on most of the occasions. This in-built advantage is known as “House Edge”, and it is the average profit that casinos make from the wagers placed by the gambler.

Like for instance, the house edge in a game of Roulette is 5% which means for every single bet, the house keeps 5% profits and returns the remain 95% to the players. If you have won $100 playing, then the casino would retain $5, and you will get the remaining $95 in your game account.

Of course, you would not be betting $100 once and expect to get $95 back because luck favours a lot in casino gambling. Besides, the main point of house edge is to understand what the average loss is. If all the players have placed a bet of $1 million, then the casino has to pay back $950,000 to the winner and retains $50,000 as profit.

The longer you are playing the games, the closer your loss will approach the house edge. You should know that the casino house always wins in the long run. The house edge tells how much casino is able to pocket the profit on an average. The casino doesn’t destroy players with terrible odds but offer a decent game and takes home a few percents from the overall winning amount.

And this is the biggest reason the casinos don’t cheat on the players. Every game you play is random, and there is no foul play involved in it. The house edge gives the casino house a mathematical advantage, so there is no point in cheating. The casino just wants you to play for a long time, and they will cash out a decent sum of money from your winnings.

Payline and House Edge Explained

Have you ever wondered why brick and mortar casinos and online gambling sites offer so many slot games to its players? It is so because the slot games provide you with a relatively low RTP. This is where the casinos make a lot of money, or in other words, it is the most significant house edge.

If you don’t know what RTP is, it stands for Return to Player. It shows how much the slot machine has paid put to players in its lifespan as compared to the money spent by the players. If you are thinking RTP regarding percentage, if the slot game offers 95% RTP, then 5% is the house edge.

In a game of slot, you have to match the reels across the winning payline to win coins in return. Most of the video slots offer 20-100 paylines to players, and it offers a greater chance of winning. But you should know that slot games with larger paylines mean they have a significant impact on the overall house edge.

Take for instance a slot game with 20 paylines. The chances of winning are maximised when you play the 20 paylines at the same time. But when you play at 10 of them, your winning probability is cut by 50%. So when you increase your chances of losing, you are significantly improving the chances of the casino for winning.

House Edge of Popular Casino Games

The house edge varies for different games, and no two games have the same house edge. You should check out below for more info.

  • Blackjack: 0.5%
  • Baccarat: 1.06%
  • Roulette: 5.5%
  • Video Poker: Up to 5%
  • Slot Machine: Up to 17%
  • Keno: More than 25%
  • Craps: 0.8%

It is imperative that if you are playing with a poor strategy and making bad decisions, the house edge will become higher. It goes true for games like Blackjack, Video Poker and Craps. There is no predefined game strategy for slot machines and roulette because the odds will always be against your favour no matter whichever strategy you implement.

You should know that the odds of winning will always be in your favour if you can master a challenging game. Games like Blackjack, Video Poker and Craps are challenging to master, but if you do, they offer the lowest house edge and have the most significant jackpot money.

The house edge is critical because the smaller house edge gives an excellent chance to win money. The higher house edge will grind away all your money and running out of money even if you want to play no fun at all. The longer your money is able to last, the longer you will stay playing the games because you will get many opportunities to make money.

Maximise Your Chances of Winning a Casino Game

By now you have realised that playing games will low house edge will fetch you more money. But you should know that house edge alone does not affect the final outcome of any game. It is also affected by how fast you are gambling and for how long and for how much amount. The formula for the average loss at gaming is:

Amt wagered per round x Rounds per hour x Hours played x House Edge

There are different ways you can curtail your losses, and some of them are discussed below:

1. You should always play the casinos games that are known for low house edges. Go for games like baccarat, blackjack and craps. If you want an immersive gambling experience, try out their different variants.

2. Always make a smaller number of bets because when you place high stakes, the house edge increases. Always play at full tables and avoid playing at slots because the gameplay is pretty fast.

3. Always take advantage of the comp points because you can cash it later on for free meals, movie tickets or other perks. Even if you don’t win, you can enjoy these freebies.

4. Always quit the game when you are ahead. The odds will still be against you, and more you play, the more you are exposing yourself for losses. Quitting at the right time means you are walking away as a winner with money in your pockets.

Jackpot versus House Edge

An essential piece of gambling advice we want to give to all our readers is to avoid slot games. It offers a higher house edge that sucks away all your money. Instead, we recommend you to play the table games because your money would last longer.

Many players are of the opinion that the slot games are betting paying as compared to table games. A win at a slot game will give you hundreds of thousands of dollars as winning money. When you place a $20 bet on a Blackjack game, and if you lose, your $20 goes down. But if you lose a slot game, you are missing a maximum of $1.

Although it is true, there are two things you need to look out for. You are paying a hefty price to hit the jackpot money. Slots have a high house edge, and it depletes all your money in a short time, and it means less playing session. The more money you can win at once, higher is the house edge.

You can win the same jackpot money by playing the table games like Roulette and Blackjack. All you have to do is to double the bet for several occasions in a row when you are on a winning streak.

How Do Players win at the Casinos?

As we have discussed earlier, it is the casino that benefits a lot as compared to the players in the long run. Now you would think it is pointless to play games when the chances of winning are so slim. But it is now possible to win casino games in spite of the existence of the house edge.

It is so because it requires several million bets for the house edge to even out and you always have the opportunity to beat the house edge in the short term. Take for example; you have placed $1 on a single number at a game of Roulette. With this method, there are several ways you can make money even with the existence of the house edge.

(1) Winning on the first spin of the roulette wheel is a pretty likely outcome, and you would be able to make a profit of $35 immediately. If you stop playing, you can pocket the winning amount and go back home. Even if you continue playing, you will still walk in profit.

(2) If you have played a hundred rounds of spin and say, your number came up 5 times. Then also, you will be in profit even though you have lost on 95 different occasions. Even though you have lost $95, but those 5 wins will give you $35 each making the total to $175. So the overall profit you make from the game is ($175-95) $80 which is pretty impressive.

There is always a chance you can make money, and it does not matter which game you are playing. Like for instance when you are playing a game of Blackjack, there is always the likelihood that you win several hands at a row.

And there are the slot games available that are known for fantastic winning payouts. You can spend a few dollars and take home hundreds of thousands of dollars as jackpot money. But it is quite common and to achieve this feat, you need to have good fortune and a big slice of luck your way. But it can happen, and all it requires is a try and a leap of faith.


The casino games are designed in such a manner by the operators and software developers that the odds are always going to be in favour of the house. But the ways as mentioned earlier can certainly help minimise the house edge, and you can make a decent winning playing your favourite casino games.

In the end, we want to reiterate that you should not overindulge yourself in the game because it leads to problem gambling. Don’t think about winning all the time but see how much fun and enjoyment you get from playing the games. If you lose, don’t complain, and if you win just thank God for earning money.

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