Casino House Edge Explained

What is House Edge?

The house edge gives casinos an advantage over you and other players. It represents the theoretical profit margin that the casino expects to make from every game.

For example, a slot machine with a 4% house advantage would theoretically pay casinos $4 out of every $100 wagered.

The casino house edge differs for each game. It ranges from as little as 0.3% with certain blackjack variations to 40% with the worst versions of keno.

Rule differences within the same game also impact the house advantage. Single-deck baccarat features a 1.01% house edge, for example, while the six-deck version has a 1.06% advantage.

Calculating House Edge

You can see the house edge of different casino games later on this page. However, you may be interested in knowing the math behind house advantages.

To calculate the house edge for casino games, you’ll need to know the relevant payouts and probabilities of winning and losing. Let’s look at how this plays out with a European roulette single number bet:

• This wager requires picking one of the available 37 pockets to win.
• 1 outcome wins / 36 outcomes lose (36:1).
• Payout is 35:1.

Now that we know the probabilities and payout, let’s find the casino house edge for the single number bet:

• 1 win = $35 payout on a $1 bet
• 36 losses = $36 in losses on $1 bets
• 35 – 36 = -$1 net
• (1 / 37 total dollars wagered) / 100 = 2.7
• This bet has a 2.70% house advantage.

We’ll save you the trouble by letting you know that all other European roulette wagers have a 2.70% casino advantage.

Let’s go over a slightly more complicated example of calculating the house edge using a craps Place 6 wager:

• Place 6 wins when any combination of 6 is rolled.
• There are 5 possible dice outcomes that produce a 6.
• It loses if any combination of 7 comes up before 6.
• There are 6 possible dice outcomes that produce a 7.
• 5 outcomes win / 6 outcomes lose (6:5).
• The payout is 7:6, which breaks down to 1.16(6 repeating).

Here’s the math behind the Place 6 house advantage. I mention repeating numbers below because you won’t get the true house edge when rounding up:

• 5 wins x 1.16(6 repeating) = $5.83(3 repeating) won on $1 bets.
• 6 losses = $6 in losses on $1 bets.
• 6 – 5.83(3 repeating) = -0.16(6 repeating)
• (0.166repeating / 11 total dollars wagered) / 100 = 1.515
• This bet has a 1.52% house edge.

Can You Calculate the House Edge of All Casino Games?

You need all necessary information to determine the house advantage for a particular game/bet. This info is readily available for classic games like baccarat, blackjack, craps, and roulette, where the odds are fixed.

However, slots and certain other games don’t supply everything needed to calculate the house edge. Slots developers provide the payouts for different outcomes/winning combinations but not the probabilities.

When playing at online casinos, you’ll notice that most developers show return to player (RTP) in the info screen. You can simply subtract the RTP from 100 to get the house advantage. For example, a slot with 95.5% RTP would have a 4.5% house edge (100 – 4.5 = 95.5).

Of course, this scenario requires you to have faith in slots providers to display real payout percentages. It’s easier to muster up this faith when dealing with reputable software developers who use certified RNGs. 

Even better is when providers get their games tested by third parties, like GLI and iTech Labs. This way, you know that an independent game lab is ensuring RTP figures are correct.

How Gamblers Can Use House Edge to Their Advantage

Outside of becoming a professional gambler, you can’t make the house advantage disappear. However, you can exercise some control over your long-term winnings by choosing the right games.

If winning is your primary goal, then go for games like baccarat, blackjack, craps, French roulette, and video poker. All of them feature under a 2% house advantage with the right bets and strategy.

This doesn’t mean you have to completely stay away from other game types. We’ve found slots and crash games with a 1% house edge. You’ll need to do some research, though, before finding the most favorable games/variations in certain categories.

When you consistently play games with low house advantages, you have a better chance at winning in the long run. Of course, you’ll still need a little luck to come out on top.

Let’s discuss other tips for closing the gap between you and the casino.

1. Some Games Have Lower House Edges than Their Figures Suggest

You might take one look at Caribbean stud (5.22% house advantage) and immediately dismiss it. But with a game like this, the casino house edge only accounts for the first betting round—it doesn’t consider subsequent rounds.

By following the perfect Caribbean stud strategy, you can actually lower the overall house edge to 2.56%. The latter figure accounts for times when you make a “raise’ or “call” bet with a favorable hand.

2. Always Consider the Base House Advantage of Progressive Games

Progressive slots and table games (e.g., Mississippi stud) can theoretically offer low house edges if the jackpot grows enough. In some cases, you may even have a theoretical advantage when a jackpot hits a certain threshold.

It’s exciting to think that you could hold the edge over casinos without being a pro gambler. However, we suggest only considering a progressive game’s base house edge and not figures that include the jackpot.

For example, let’s say a progressive slot with a 10% house advantage now has a 0% edge due to the rising jackpot. You’re unlikely to win the top prize, so we suggest viewing this slot as still having a 10% house edge. When you play such games, do so for fun and not with the “lower” house advantage in mind.

3. Volatility Matters

While a low house edge is important, you also need to consider volatility. Volatility refers to the short-term accuracy of a game’s house edge.

Highly volatile games like scratchcards and slots can offer explosive payouts or put you through long droughts. By contrast, less volatile games like baccarat and blackjack deliver wins at a more even pace.

You should consider what type of short-term winnings you’re looking for in addition to the house edge. For example, a slot with a 2% house edge looks attractive, but its immediate results may be quite wild.

Casino Games House Edge Chart

You can use the following chart for a quick reference on the house edge of common casino games. Some of these figures are ranges that account for different rule sets like in blackjack. 

Play Around House Edge for Success

You don’t have to settle for a high casino house edge because there are plenty of opportunities to lower these figures. 

Everything starts with choosing games that have low house advantages. We prefer games with under a 3% house advantage, while 1–2% is even better.

You also need to learn the strategy and bets that will help you achieve the lowest house edges. For example, you can find a strategy chart online to master blackjack and boost your odds.If you’re ready to take on the gaming world, check out our favorite real money online casinos.  We’ve reviewed all of these casinos and found plenty of games with low house advantages at them.