Definition of House Edge

What does the term "house edge" mean in the world of online casinos? What is meant by the term "house edge"?

The "house edge" is the mathematical advantage that a casino holds over the player on any given game or bet. It is the built-in percentage that ensures the casino will always make money over the long run, regardless of the results of any individual session.

For instance, let's say you are playing European roulette and you place a $10 bet on red. There are 18 red numbers, 18 black numbers and one green zero on the wheel. The zero is what creates the house edge - because if the ball lands on zero, everybody loses. This gives the casino a house edge of 2.7% on every single spin of that wheel.

What this means in practical terms is that for every $100 you wager at a European roulette table, the casino expects to keep $2.70 over the long run. The remaining $97.30 is expected to be returned to you. That $2.70 is the house edge at work.

Now here is the important thing to understand. The house edge is not something that can be beaten over the long run. It is baked into the mathematics of every casino game. The longer you play, the more the house edge will grind your bankroll down. This is simply how casinos stay in business.

That said, the house edge varies enormously from game to game, and knowing the difference can have a significant impact on how long your money lasts.

For instance, let's say that you sit down at an American roulette table instead of a European one. The American wheel has an extra double-zero pocket, which pushes the house edge up to 5.26%. That is nearly double the European wheel. Over a long session, that difference is enormous.

Blackjack played with correct basic strategy has one of the lowest house edges of any casino game - often as low as 0.5%. Slot machines, on the other hand, can carry a house edge anywhere from 2% all the way up to 15% depending on the game and the casino.

Here is a rough guide to house edges across common casino games. European roulette sits at 2.7%. American roulette is 5.26%. Baccarat on the banker bet is around 1.06%. Craps on the pass line is 1.41%. Blackjack with basic strategy can be as low as 0.5%. Slots vary widely but commonly fall between 3% and 10%.

As a general rule, the more skill involved in a game, the lower the house edge tends to be. Games of pure chance like slots and roulette carry a fixed house edge that no amount of strategy can change. Games like blackjack reward players who take the time to learn proper strategy with a significantly lower edge.

As mentioned, you cannot eliminate the house edge, but you can choose games where it is as small as possible. That is one of the smartest things any casino player can do.