The house edge is a percentage reflecting the advantage that
a particular casino game has over the player. It is not,
however, the ratio of money lost to the total wager. Instead, it
indicates the average loss to the original bet, making it
simpler for the customer to estimate their expected losses
during a single hand or gaming session.
The higher the percentage, the larger the advantage for the
house. If a player were to place an initial wager of $100 on a
game with a 0.28% house edge, then they could expect to lose 28
cents. On a game with a house edge of 4%, that same wager would
That may not sound like much of a profit for the casino, but
consider that the doors to these establishments are open 24/7.
Every minute of the day, the casino is raking in 0.50% here and
12% there. All these figures add up over time, which is why the
gambling mecca of Macau brought in $45.27 billion in gross
revenue in 2013.
Why Casinos Don’t Cheat
Assuming that you understand the house edge and what it
represents, this mathematical percentage should also serve as
the most compelling piece of evidence against casino fraud.
Legions of bitter gamblers swear that casinos resort to
underhanded means to take their money. In reality, this is
nothing more than a defense mechanism meant to compensate for
bad luck and poor strategy.
Simply put, casinos don’t need to cheat to get your cash.
They have an inherent advantage thanks to the rules of the game
and payout odds (which always differ from the true odds). While
some players might experience short-term success or even walk
away as instant millionaires, most gamblers are going to wind up
losing more than they win. This is why gaming establishments
continue to flourish, despite the efforts of advantage players
and an increasingly savvy betting public.
The House Edge for Casino Games
Casino games come in a wide variety, but you can be certain
that all of them have been carefully designed to give the house
an overall advantage over the players. The edge for some games
is fixed, while others vary depending on factors such as deck
size and rules. This section includes the house advantage for
some of the most popular casino games currently being offered
around the globe.
The edge is 1.06% when betting on the banker, and
it’s 1.24% when wagering on the player. If the tie option is
chosen, the edge increases to 14.36%.
When playing with liberal Vegas rules, the house
edge 0.28%. This includes the dealer standing on soft 17, late
surrender, resplitting aces, doubling after splitting, and
doubling down on any two cards.
Caribbean Stud Poker
The house edge on this card game is
The edge is 2.88% when you go to war on a tie.
If you choose to surrender on a tie, the edge is 3.70%. When you
bet on a tie, the edge increases to 18.65%.
This popular dice game has a wide array of bets,
often with a different house edge for each. The worst bets are
any seven (16.67%) and two, twelve, and all hard hops (13.89%).
Pass/come has an edge of 1.41%, while don’t pass/don’t come is
slightly better at 1.36%. Taking odds on four or ten, five or
nine, or six or eight all carry a house edge of 0.00%, which
makes these some of the best wagering opportunities from any
casino game (although the player must also pair this with a
negative expectation wager).
Game of Keno
This lottery-style game has a terrible house edge that
usually ranges from 25% to 29%, making it one of the worst
casino wagers. However, the potentially large payout ensures
that bettors still flock to it.
The popular Asian domino game has a house advantage
Pai Gow Poker
The card game version of the Chinese classic
carries a 1.46% edge.
The European version with the single zero has a
casino advantage of 2.70%. When the 00 is added for the American
version, this advantage increases to 5.26%.
Depending on which bets you’re placing, Sic Bo has a
house edge of 2.78% to 33.33%.
The house edge on slot machines ranges from
2% to 25%, but it’s almost impossible to gauge what the house
edge is on the specific machine you’re playing.
The edge is 0.76% when the dealer hits on a soft
17, and this lowers to 0.40% when the dealer stands on a soft
Three Card Poker
The PairPlus option carries a 7.28% edge
for the casino, while choosing to ante and play results in a
The traditional Jacks of Better version of the
game with full pay has a house advantage of 0.36%. In a few rare
cases, some video poker machines played with perfect strategy
actually give the player a slight edge over the casino.
Hourly Expected Loss
One way a gambler can use the house edge is to calculate the
cost of their entertainment. And that’s exactly how a gambler
should view casino games, too—as a form of entertainment with a
cost. It’s not enough to know the house edge on a game, though.
You also need to know your average bet size and the average
number of bets you’re going to make per hour.
Once you have that information, you can just multiply all
those factors together in order to get the average amount of
money you can expect to lose per hour. This won’t resemble your
actual losses until you start getting a lot of hours under your
belt, because anything can happen in the short term. But it’s
still not a bad idea to have some idea of how this works.
Here are some examples.
If you stick with the banker bet, you’re looking
at a 1.06% house edge multiplied by an average bet of $100 and
an average number of bets per hour of 80, you’re looking at an
expected loss per hour of 1.06% X $100 X 80, or $84.80.
Depending on how many players are at the table,
blackjack plays at a similar pace to baccarat. If you’re the
only player at the table, you might see as many as 200 hands per
hour. But with a couple of other players at the table, you’re
looking at more like 80 hands per hour. For this example, we’ll
assume 80 hands per hour at $100 per hand and a 0.28% house
edge. Your expected hourly loss is $22.40. Keep in mind that you
need to use perfect basic strategy to achieve this expectation.
Caribbean Stud Poker
Caribbean Stud is a slower game than
blackjack. You might see 50 hands per hour. Assuming $100 bets
at a 5.22% house edge, you’re looking at an hourly loss of $261,
even with the slower pace of the action.
You can estimate 65 hands per hour at Casino
War. Given a 2.88% edge and an average bet size of $100, you’re
looking at an average hourly loss of $187.20.
With craps you can expect to see around 50 rolls per
hour. The calculations for the hourly loss are a bit more
complicated with this game though, because most of the commonly
placed bets are not decided in a single roll. If you were
playing the pass bet on every roll, for example, you’d expect
that bet to be settled around once every 3.4 rolls. So at 50
rolls per hour, it would be settled about 15 times per hour. The
house edge of this bet is 1.41%, so you’d expect to lose $1.41
per settlement over a $100 wager. With 15 settlements an hour,
that equates to an expected hourly loss of $21.15.
Game of Keno
Keno’s huge house edge of between 25% and 29% makes it
look like one of the worst bets in the casino, and in a sense,
it is. But in terms of hourly expected loss, it’s probably
better than you think. That’s because most people don’t bet $100
on keno at a time—they usually only bet a dollar. And they might
only make between 6 and 12 bets per hour. Call it 12 bets an
hour at $1 each, and your expected loss is only $3 or $4.
This game has a relatively low house edge of 1.50%,
but what’s really attractive about it, from an expected loss per
hour perspective, is how slowly it plays. Even at $100 per bet,
you’re only making 40 bets per hour, which is $4000 in action
per hour. 1.5% of that is $60.
Pai Gow Poker
Like the original tile based version, we’re
looking at a relatively low house edge and a slow placed game.
The 1.46% edge is slightly better, but the game plays just a
tiny bit faster with cards instead of tiles. You’re still
looking at about $60 per hour if you’re playing for $100 per
The European version has a 2.70%. You shouldn’t
play any other version, because you can almost always find a
single zero wheel if you’re just willing to do a little bit of
looking around. Like the Pai Gow games, you’re only looking at
40 hands per hour or so. At $100 per bet, that’s $4000 in action
and $108 per hour in expected losses.
Sic Bo is a little bit faster than Pai Gow or
roulette, but only just. You’re talking about 45 bets per hour.
If you stick with the best bets, which have a house edge of
2.78%, you’re looking at an expected hourly loss of $125.
We’ll assume a 10% house edge, although you
might find looser games than this. But slots is a fast paced
game. You’re talking about 600 spins per hour. Most slots
players don’t bet $100 per spin, but if you did, you’d be
looking at a massive hourly expected loss of $6000. Even if you
only play for $10 per spin, you’re looking at $600 per hour.
Like blackjack, you’re looking at 80 hands per
hour. Assuming $100 per bet, that’s $8000 in action per hour.
0.40% of that is $32.
Three Card Poker
This game plays faster than you might
think. You can assume 70 hands per hour at $100 per hand. With a
3.37% edge, you’re looking at an expected loss per hour of $235.
The house edge for full pay Jacks or Better is
0.36%, but you’re looking at 600 hands per hour. Chances are you
won’t be putting $100 into action on each hand; $5 per hand is
more likely. That’s $3000 in action per hour, and 0.36% of that
is only $10.80, making this one of the most affordable types of
casino entertainment you’ll find.
The house edge has existed for as long as land-based casinos
have been around, and it’s been refined over the centuries to be
as efficient as possible. Its sole purpose is to ensure that
gaming establishments have a long-term advantage over their
customers, something which is necessary for the continued
operation of any casino.
Games such as slot machines and keno provide a larger
advantage for the house, although their potentially sizable
payouts ensure that customers keep coming back for more. This is
especially notable in the case of slots, as their 2% to 15% edge
hasn’t prevented them from being the largest revenue generator
at casinos around the globe.
Under the right set of circumstances, the house edge can be
marginalized or even turned to the player’s favor. This is
possible in video poker or certain wagers in craps, although the
random nature of such games still doesn’t guarantee a long-term
The best tactic for a gambler is to accept that the odds are
stacked against them. Once this realization sets in, you can
concentrate on enjoying yourself, which should be the main
reason for visiting a casino in the first place.
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