What Is the Casino's Advantage?
The Built-In Advantage of the Casino
The old adage "the house always wins" is well-known for a reason. It's a direct reference to the house edge, the mathematical advantage that ensures casino profitability. It represents the average percentage of a player's bet that the casino expects to keep over the long run. Grasping this concept is essential for anyone who wants to gamble intelligently.
The Math Behind the Advantage
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 casino that win. Roulette provides a very clear illustration.
The wheel has 37 numbers in total.
There is one chance in 37 that you will win.
However, if you do win, the casino pays you out at 35 to 1, not 36 to 1.
This discrepancy between true odds (36:1) and payout odds (35:1) is the house edge.
This results in a 2.7% house edge, meaning the casino will, on average, retain $2.70 of every $100 wagered.
A Comparison of Popular Games
Not all games are created equal; the house advantage can be very different depending on what you play.
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) |
~1.41% |
The basic bets in Craps offer excellent odds. The "sucker bets" in the middle of the table have a much higher edge. |
European Roulette |
Exactly 2.70% |
This is a constant, unchangeable edge. |
American Roulette |
5.26% |
The addition of the double zero ('00') pocket almost doubles the house edge, making it a much worse game for casino the player. |
Slots |
Usually 4% to 8% |
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
You can absolutely win in the short term; the house edge is a long-term mathematical expectation. Short-term results are all about variance. Anything can happen. However, knowing about the house edge allows you to make smarter choices. By choosing games with a lower house edge, you are mathematically giving yourself a better chance of having a winning session and making your bankroll last longer.
