We often talk about the return to player, or RTP, on the site, as well as payback percentage, here on Flip The Switch. But sometimes you might encounter a term such as “house edge.” This is effectively the other side of the coin to those first terms – the house edge is what the casino is expected to make, over time, on a casino game based on its design.
Each game in the casino is designed with a house edge – it’s how the casino makes money and is able to offer the games to begin with. The house edge can vary widely – live keno and the big wheel games tend to be among those with the biggest house advantages, whereas blackjack and Baccarat (not counting side bets) tend to be among those with lower house edges.
The house edge is the mathematical calculation of how much a casino is expected to win as a percentage of wagers over the long term. The actual amount held can vary. This is how a player can win big one visit and lose big the next – it’s not a linear, collect X% at all times, sort of scenario.
This is why you’ll sometimes here the adjacent term “house hold,” which speaks to the percentage the casino actually kept, in reporting on data that is posted to various gaming commission websites. There will always be some sort of small variance between the actual and the theoretical amount as there’s always swings in both directions that can occur in the short term.
The more bets, and the longer a game is going on a casino floor, the closer it will tend to get to its expected result, that house edge.
Understanding the house edge of various games can help players make decisions on what they want to play. The house edge can vary based on differing rules. For instance, the house edge on Blackjack increases when they change a Blackjack payout from 3:2 to 6:5. Adding a third green 0 space to roulette has raised the house edge on that game.
Many times different video poker machines in a casino will have different pay tables, each with their own house edge assigned to them. Knowing how to look for better pay tables can be part of helping a player maximize their return to get paid the best they can for their wins.
So house edge is one of those things that can be important for players to understand, both for its relevance in how the casinos win against players, but also at times knowing what the best gamble for your dollar will be.
