House Edge

Patrick Brown

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The house edge is a term in gambling that describes the mathematical advantage casinos have over players. It represents the casino’s average profit from players’ bets and is built into every game at both online and land-based casinos. Expressed as a percentage, the house edge varies from one game to another and is a critical factor determining the potential return on player bets over time.

This advantage ensures that, while players might win in the short term, the casino is statistically guaranteed to make a profit over a large number of bets and over a long period. It’s not a measure of outcomes on a day-to-day basis but rather a long-term expectation of the casino’s earnings. The house edge is also the ratio of the average loss to the initial bet, which means that it quantifies the expected loss per bet in the long run.

Games with a lower house edge are more favorable to the player because they will, on average, lose less money to the casino over time. Understanding the house edge helps players make informed decisions about which games to play based on the potential long-term profitability for the casino. It’s a key concept for any gambler looking to manage their bankroll effectively and maximize their chances of winning.

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