What Is the Casino House Edge? How Does It Work?

house edge in online casino games

Casinos should be able to pay out the gamblers who win, give bonuses to keep them engaged, cover the payments of employees, and still remain profitable. This means that gamblers have a great chance to win, but the cumulative income for the casino is lower than its expenses. It’s how all businesses work.

That’s why the gambling venue has to have a casino house edge over its players. It’s calculated on an average, as it differs.

For example, in Casino Hold’em Poker, you’re required to make two initial wagers, but the game is taking only one of them into consideration. After the mathematical calculation, the casino’s edge is 2.16 %.

The American Roulette bets house edge, on the other hand, is much higher if you place a bet on a single number. You have a 1/38 probability to win, and 37/38 probability to lose. The croupier’s advantage is 5.26% in that game.

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What’s the Online House Advantage

The website’s lead is not set by individual casinos. It’s a mathematical calculation that results from the game’s rules. The players have the same chances to win roulette, whether they play online or in a “land” casino.

This is why it’s important to play games by reputable and licensed game providers. They program the games to give you the same odds as the ones that you’d play with an actual dealer. Instead of being focused on delivering the biggest casino house edge, they focus on fair play.

How Is the Casino House Edge Calculated

The calculation is not simple, and it depends on the game’s rule.

For roulette, it’s easy to calculate the edge. But it’s much harder to calculate the casino Texas Holdem house edge, since your chances change with the cards you get and the moves you make. The gamblers should understand that a welcome bonus does not lower the site’s chances to earn money. Even though the casino gives you free money to play with, it also gives you playthrough requirements, so it can stay profitable on the long term.

Let’s see an example of how the house advantage is calculated in a game that uses a single dice. In this game, you’re supposed to guess the number that you’re going to throw.

  • The dice has six sides, so you have ⅙ chance to get the number right. 
  • The casino will pay you 5 to 1, which means that you’ll get $25 if you bet $5.

This is how the casino’s edge will be calculated:

1 – ⅚ = 0,16(6)

0,16(6) x 100 = 16.67

In conclusion, the gambling venue would have a lead of 16.67%.

Difference Between a Casino’s Payout Percentage and the House Advantage

The casino’s edge means that on every $100 the casino gets from a particular game, it keeps a percentage. From the example from the dice game above, it would profit with approximately $16.67 out of $100 that the gamblers deposit and bet. The payout percentage is the amount that the casino pays out. In this case, this would be the calculation:

100% – 16.67% = 83.33%

Gambling sites will rarely share the exact casino house edge. However, they will share the percentage that each game pays out. If, for example, the payout for a particular online slot is 97%, it means that the site’s earning is 3% of the total amount paid by gamblers on that pokie.

The Ultimate List: Casino Games by House Edge

We’ll list the percentages for some of the most popular games in online casinos.

Keep this to mind: the edge is calculated for an extended period of time. If the edge on a slot is 3%, it doesn’t mean that the player will win 97% of what they bet. That’s ridiculous. It means that once a player wins a jackpot slot game, they will get 97% of all bets that were placed towards the cumulative jackpot amount.                                 

House Edge in Poker

Here’s a table that gives you the average percentage that the casino gets to keep in different poker games:

Poker Game House Edge
3 Card Poker house edge 7.28%
Casino Hold’em 2.16%
Wild Hold’em Fold’em 6.86%
Caribbean Stud Poker 5.22%
Pai Gow Poker house edge 1.46%
Crazy 4 Poker 3.42%

Why Does the House Have an Edge in Blackjack

Blackjack is a game based on skill. If you play the perfect cards, then why does the dealer still have better chances than you?

In essence, you have to beat the dealer if you want to win money. The dealer does not have to beat you, since you can’t take your bets back. The casino will often lose individual hands. However, it has a statistical advantage in the long run, since you can’t always win.

Game developers program the games by the same rules that are valid in “land” casinos. This means that the edge in Blackjack is the same.

Blackjack Game Casino Advantage
Spanish Blackjack house edge 0.40% (when dealer stands on soft 17) 0.76% (when dealer hits soft 17)
Blackjack (Liberal Vegas rules) 0.28%
Atlantic City Blackjack 0.35%
Vegas Strip Blackjack 0.34%

There is a Roulette House Edge?

Absolutely!

When you play Roulette, you have a chance to win a massive amount of money. However, not all players win, and they don’t win big.

When compared to most other casino games, the house edge Roulette is pretty high.

Roulette Game House Advantage
European Roulette 2.70% on all bets
French Roulette 1.35% for even money bets 2.70% for non-even money bets
House edge American Roulette 5.26% on all bets 7.89% for the 0-00-1-2-3 combo

About the Baccarat House Edge?

Baccarat is a strategy game with simple rules and great chances to win money.

The house edge Baccarat starts very low, from 1.04% when you play on Player and 1.06% when you play on Banker. But if you bet on Tie, the croupier gets a much higher lead of 14.36%.

Mini Baccarat is a similar game, but it has lower limits. The Mini Baccarat house edge is 1.02% if you bet on Banker, 1.24% if you bet on Player, and 14.4% when you bet on Tie.

Craps House Edge Beneficial to Players

Yes; gamblers get really great chances to win money on Craps, since the website has minor superiority, depending on the bet. 

If you don’t pass odds, there’s a Craps Zero house edge. But if you pass/come, the advantage of the casino is 1.41%. The website has the highest chances to earn money for Any 7 (16.67%).

Do Slots Have a House Advantage?

Slots are really attractive for players who don’t want to bother with strategies. They like getting promo offers with free spins, with the intention to win money with minimal bets.

It’s important to know that slots are profitable for the site. The advantage different on each pokie, and it all depends on the way the software was programmed. The casino’s advantage may go from 2% to 15%.

Games where Your Biggest Chance to Win

 These are the casino games with lowest house advantage:

  • Blackjack
  • Pai Gow Poker
  • Craps
  • French Roulette

FAQ

Do I get the same chances to win in an online casino?

Yes. Online casino games are based on the same principles when compared to traditional casino games.

The only thing that’s different is the playing environment. You can play on mobile or desktop. You will choose the withdrawal and payment method, and you’ll get your winnings when you want them. The banking process takes a bit more time when compared to a land casino. Other than that, there’s no difference in the play.

What’s the lowest house advantage casino game?

If you’re looking for the game that gives the player the biggest chance to win, it’s classic Blackjack.