The Mathematical Advantage of the Casino
The idea that the casino always comes out on top is common knowledge. But what is this "edge" exactly? These two concepts are the most important numbers in gambling.
The House Advantage
The house edge is the percentage of a player's original bet that the casino expects to win, casino on average, over the long term. If the house edge is 2%, the casino's theoretical average earning from $100 in bets is $2. It's important to remember this is a long-term average. In the short term, anything can happen – you can win big or casino lose fast.
The Player's Perspective
It's the same concept but viewed from the player's side. It's the theoretical percentage of wagers that a game will pay out. If a slot's RTP is 96%, it means for every $100 wagered, it will theoretically return $96 to the player pool over its lifetime.
RTP is most commonly used for slot machines, and you can often find this information within the game's help or information screen.
A Comparative Look
It's crucial to know which games offer the best value. Choosing games with a lower house edge (and higher RTP) gives you a better chance of winning in the short term and casino makes your bankroll last longer.
Game Average Edge Notes
Blackjack ~0.5% - 2% Requires optimal strategy to get this low edge.
Baccarat ~1.06% (on Banker bet) The Banker bet has one of the lowest house edges in the casino. The Tie bet has a very high edge (~14%).
European Roulette 2.7% Always choose European over American if available.
American Roulette Over 5% The '0' and '00' pockets give the house a much larger advantage.
Slots Varies widely Always check the RTP of a slot before playing.
Playing Smarter
You can use these numbers to your advantage. While you can't eliminate the house edge, you can choose games and strategies that minimize it. It's the smartest way to manage your gambling bankroll and enjoyment.