The Built-In Advantage of the Casino
Ever heard the phrase "the house always wins"? This saying describes the house edge, the core principle upon which all casinos operate. It is the casino's built-in mathematical advantage over the player in any given game. Understanding it is crucial for casino any smart gambler.
A Simple Explanation
The house edge is derived from the difference between the true odds of winning a bet and the odds that the casino pays out for that win. Consider an example from the game of Roulette:
On a European wheel, there are 37 possible outcomes.
If you place a bet on a single number, your true odds of winning are 1 in 37.
A winning bet is rewarded with a 35-to-1 payout.
This discrepancy between true odds (36:1) and payout odds (35:1) is the house edge.
The mathematical result is a house advantage of 2.7%.
House Edge in Different Casino Games
The house edge varies significantly from one game to another, and even between different bets within the same game.
Game Typical House Edge Notes
Blackjack Less than 1% This low edge is only achievable when playing with perfect basic strategy. Poor play can increase it significantly.
Baccarat (Banker Bet) ~1.06% Betting on the Banker offers one of the lowest house advantages available in any casino game.
Craps (Pass/Don't Pass) Around 1.4% Stick to the fundamental bets for a low house edge. Avoid the proposition bets.
European Roulette Exactly 2.70% A fixed edge that applies to almost every bet on the table. Consistent and casino predictable.
American Roulette 5.26% This is a clear example of how a small rule change can dramatically affect the odds.
Slots Varies widely The house edge is programmed into the game and is often expressed as the Return to Player (RTP). An RTP of 96% means a 4% house edge.
Playing Smart
The house edge does not mean you can't win. It's an average calculated over millions of events. Luck is the determining factor in any one visit to the casino. Playing games with a better statistical return is the smartest way to manage your gambling funds.