What Exactly is the House Edge?
If you’re a fan of casino games you’ve most likely heard of the house edge. If you’re a novice player, however, who is brand new to the exciting world of casino games (particularly those played online) you might be scratching your head wondering when the topic turned from gambling to the corners of domestic buildings. Whose house are they talking about? Is the edge sharp? And what exactly is a house edge, anyway!
Don’t worry, it’s okay if you’re feeling a little confused! We’ve got you covered with a simple and clear definition of what exactly a house edge is below. We even give you examples of how the house edge works in some of the most popular casino games such as blackjack and roulette.
A Detailed Definition of House Edge
A house edge can be defined as the ‘built-in’ or statistical advantage that a casino has in all the games it hosts. This simply means that for a casino to have an advantage, players will always lose more money than they end up winning. Money makes the world go round and casinos are no different when it comes to the bottom line, regardless whether they operate online or are based on land. A house advantage ensures the steady flow of profits to the casino which covers its overheads and keeps it in business.
It is usually expressed as a percentage and is a statistical calculation based on the difference between the odds of the player winning and the odds of the house winning.
The house edge in casinos are set up in such a way that the more time a player spends playing a game, the more they will eventually lose. However, this does not mean that there are not a host of appealing mobile casino bonuses NZ available to players.
Understanding the House Edge in Blackjack
In blackjack, the house edge is created as a result of the double-bust rule. Players are required to draw first and if they bust, they will automatically lose even if the dealer busts in the same round. For casinos and online casino websites, this is the sole advantage they have in blackjack. With rule variations aside, blackjack generally has a 0.28% house edge. By understanding the house edge you can develop your strategy accordingly. By calculating the odds of you going bust against losing on value, you’ll be able to decide when to hit and when to stay and in this manner try and reduce the house edge.
Understanding the House Edge in Roulette
In European roulette, for example, the wheel has a single green zero plus 36 numbers. This means that once the roulette wheel has stopped spinning the ball can land in one of 37 possible pockets. Therefore the statistical odds of you choosing one of the possible pockets is 1:37. The house edge comes in to play when the casino pay-outs are set at 35 to 1. This means that over time the casino will never lose and has a house edge of 2.7%.
Return To Player & Payback Percentages
Return To Player or RTP’s is a term used to describe the long-term expected payback percentage to its players from all the wagers of a particular casino game with a set house edge. This set amount that the casino game pays back to its players is referred to as a payback percentage.