House Edge: Meaning and Definition
House edge is the mathematical advantage casinos and online casinos have over players. It’s often expressed in percentages and the larger the percentage, the less chance you have of walking out victorious.
Summary
House edge is a useful data point for casino games, telling players more about the advantage casinos have over them. House edge shouldn’t be confused with RTP, which are two sides of the coin. Although house edge can be reduced in some card games through advanced strategies, casinos always have an advantage long-term.
What is House Edge?
House edge is the advantage casinos have over players. Both online casinos and land-based establishments ensure they remain profitable in the long run, which is why they’ll always have an advantage, regardless of the casino game you’re playing.
House edge varies by the game. Blackjack has the lowest house edge, which means that you have the best chance of winning. Still, even with the perfect blackjack strategy, the casino will win long-term. On the other hand, Keno has one of the highest house edges.
For online slots, the house edge can be determined through RTP. Return-to-player is the percentage of the total wagers that are returned to the player, but the house of edge is the opposite of that. So, if some online slot has the RTP of 96%, the house edge is 4%.
Why It’s Important
The term ‘house edge’ is important to understand so that you know which games to select. Also, players must be aware that online casinos will have some sort of advantage regardless of what you do.
How It’s Used
House edge has informational intent. Players must be informed what the house edge is for each game before they deposit money. If you’re playing online, you can find house edge (or RTP for slots) in game settings or information tab.
House edge also tells you how much casinos are winning long-term. Still, house edge can be reduced by applying the perfect strategy, but even so, casinos will always have even the slightest advantage.
