Casino House Edge Explained
The Roulette House Edge Explained & Why The House Can’t Stop You From Winning Casino games, like Roulette, Blackjack, or Poker, are often considered as games of “unequal chance.” The reason is that its nature and structure generally leans towards the advantage of the House or the casino establishment. Casino slots house edge explained Return of the two identical reel s drive customers to things are man, again, the established. American psychiatric association. However, some casino games are different to Roulette when it comes to house edge. As you can see above, the house edge for Blackjack is set at a default of 0.5%. Although, this can be even higher if you are playing without knowledge of the game or a specific strategy, something that catches out novice gamblers.
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Introduction
The house edge is defined as the ratio of the average loss to the initial bet. In some games the beginning wager is not necessarily the ending wager. For example in blackjack, let it ride, and Caribbean stud poker, the player may increase their bet when the odds favor doing so. In these cases the additional money wagered is not figured into the denominator for the purpose of determining the house edge, thus increasing the measure of risk. For games like Ultimate Texas Hold 'Em and Crazy 4 Poker, where there are two required initial wagers, the house edge is based on one of them only. House edge figures are based on optimal or near-optimal player strategy.
The table below shows the house edge of most popular casino games and bets.
Casino Game House Edge
| Game | Bet/Rules | House Edge | Standard Deviation |
|---|---|---|---|
| Baccarat | Banker | 1.06% | 0.93 |
| Player | 1.24% | 0.95 | |
| Tie | 14.36% | 2.64 | |
| Big Six | $1 | 11.11% | 0.99 |
| $2 | 16.67% | 1.34 | |
| $5 | 22.22% | 2.02 | |
| $10 | 18.52% | 2.88 | |
| $20 | 22.22% | 3.97 | |
| Joker/Logo | 24.07% | 5.35 | |
| Bonus Six | No insurance | 10.42% | 5.79 |
| With insurance | 23.83% | 6.51 | |
| Blackjacka | Liberal Vegas rules | 0.28% | 1.15 |
| Caribbean Stud Poker | 5.22% | 2.24 | |
| Casino War | Go to war on ties | 2.88% | 1.05 |
| Surrender on ties | 3.70% | 0.94 | |
| Bet on tie | 18.65% | 8.32 | |
| Catch a Wave | 0.50% | d | |
| Craps | Pass/Come | 1.41% | 1.00 |
| Don't pass/don't come | 1.36% | 0.99 | |
| Odds — 4 or 10 | 0.00% | 1.41 | |
| Odds — 5 or 9 | 0.00% | 1.22 | |
| Odds — 6 or 8 | 0.00% | 1.10 | |
| Field (2:1 on 12) | 5.56% | 1.08 | |
| Field (3:1 on 12) | 2.78% | 1.14 | |
| Any craps | 11.11% | 2.51 | |
| Big 6,8 | 9.09% | 1.00 | |
| Hard 4,10 | 11.11% | 2.51 | |
| Hard 6,8 | 9.09% | 2.87 | |
| Place 6,8 | 1.52% | 1.08 | |
| Place 5,9 | 4.00% | 1.18 | |
| Place 4,10 | 6.67% | 1.32 | |
| Place (to lose) 4,10 | 3.03% | 0.69 | |
| 2, 12, & all hard hops | 13.89% | 5.09 | |
| 3, 11, & all easy hops | 11.11% | 3.66 | |
| Any seven | 16.67% | 1.86 | |
| Crazy 4 Poker | Ante | 3.42%* | 3.13* |
| Double Down Stud | 2.67% | 2.97 | |
| Heads Up Hold 'Em | Blind pay table #1 (500-50-10-8-5) | 2.36% | 4.56 |
| Keno | 25%-29% | 1.30-46.04 | |
| Let it Ride | 3.51% | 5.17 | |
| Pai Gowc | 1.50% | 0.75 | |
| Pai Gow Pokerc | 1.46% | 0.75 | |
| Pick ’em Poker | 0% - 10% | 3.87 | |
| Red Dog | Six decks | 2.80% | 1.60 |
| Roulette | Single Zero | 2.70% | e |
| Double Zero | 5.26% | e | |
| Sic-Bo | 2.78%-33.33% | e | |
| Slot Machines | 2%-15%f | 8.74g | |
| Spanish 21 | Dealer hits soft 17 | 0.76% | d |
| Dealer stands on soft 17 | 0.40% | d | |
| Super Fun 21 | 0.94% | d | |
| Three Card Poker | Pairplus | 7.28% | 2.85 |
| Ante & play | 3.37% | 1.64 | |
| Ultimate Texas Hold 'Em | Ante | 2.19% | 4.94 |
| Video Poker | Jacks or Better (Full Pay) | 0.46% | 4.42 |
| Wild Hold ’em Fold ’em | 6.86% | d |
Notes
| a | Liberal Vegas Strip rules: Dealer stands on soft 17, player may double on any two cards, player may double after splitting, resplit aces, late surrender. |
| b | Las Vegas single deck rules are dealer hits on soft 17, player may double on any two cards, player may not double after splitting, one card to split aces, no surrender. |
| c | Assuming player plays the house way, playing one on one against dealer, and half of bets made are as banker. |
| d | Yet to be determined. |
| e | Standard deviation depends on bet made. |
| f | Slot machine range is based on available returns from a major manufacturer |
| g | Slot machine standard deviation based on just one machine. While this can vary, the standard deviation on slot machines are very high. |
Guide to House Edge
The reason that the house edge is relative to the original wager, not the average wager, is that it makes it easier for the player to estimate how much they will lose. For example if a player knows the house edge in blackjack is 0.6% he can assume that for every $10 wager original wager he makes he will lose 6 cents on the average. Most players are not going to know how much their average wager will be in games like blackjack relative to the original wager, thus any statistic based on the average wager would be difficult to apply to real life questions.
The conventional definition can be helpful for players determine how much it will cost them to play, given the information they already know. However the statistic is very biased as a measure of risk. In Caribbean stud poker, for example, the house edge is 5.22%, which is close to that of double zero roulette at 5.26%. However the ratio of average money lost to average money wagered in Caribbean stud is only 2.56%. The player only looking at the house edge may be indifferent between roulette and Caribbean stud poker, based only the house edge. If one wants to compare one game against another I believe it is better to look at the ratio of money lost to money wagered, which would show Caribbean stud poker to be a much better gamble than roulette.
Many other sources do not count ties in the house edge calculation, especially for the Don’t Pass bet in craps and the banker and player bets in baccarat. The rationale is that if a bet isn’t resolved then it should be ignored. I personally opt to include ties although I respect the other definition.
Element of Risk
For purposes of comparing one game to another I would like to propose a different measurement of risk, which I call the 'element of risk.' This measurement is defined as the average loss divided by total money bet. For bets in which the initial bet is always the final bet there would be no difference between this statistic and the house edge. Bets in which there is a difference are listed below.
Element of Risk
| Game | Bet | House Edge | Element of Risk |
|---|---|---|---|
| Blackjack | Atlantic City rules | 0.43% | 0.38% |
| Bonus 6 | No insurance | 10.42% | 5.41% |
| Bonus 6 | With insurance | 23.83% | 6.42% |
| Caribbean Stud Poker | 5.22% | 2.56% | |
| Casino War | Go to war on ties | 2.88% | 2.68% |
| Crazy 4 Poker | Standard rules | 3.42%* | 1.09% |
| Heads Up Hold 'Em | Pay Table #1 (500-50-10-8-5) | 2.36% | 0.64% |
| Double Down Stud | 2.67% | 2.13% | |
| Let it Ride | 3.51% | 2.85% | |
| Spanish 21 | Dealer hits soft 17 | 0.76% | 0.65% |
| Spanish 21 | Dealer stands on soft 17 | 0.40% | 0.30% |
| Three Card Poker | Ante & play | 3.37% | 2.01% |
| Ultimate Texas Hold 'Em | 2.19%* | 0.53% | |
| Wild Hold ’em Fold ’em | 6.86% | 3.23% |
Standard Deviation
The standard deviation is a measure of how volatile your bankroll will be playing a given game. This statistic is commonly used to calculate the probability that the end result of a session of a defined number of bets will be within certain bounds.
The standard deviation of the final result over n bets is the product of the standard deviation for one bet (see table) and the square root of the number of initial bets made in the session. This assumes that all bets made are of equal size. The probability that the session outcome will be within one standard deviation is 68.26%. The probability that the session outcome will be within two standard deviations is 95.46%. The probability that the session outcome will be within three standard deviations is 99.74%. The following table shows the probability that a session outcome will come within various numbers of standard deviations.
I realize that this explanation may not make much sense to someone who is not well versed in the basics of statistics. If this is the case I would recommend enriching yourself with a good introductory statistics book.
Standard Deviation
| Number | Probability |
|---|---|
| 0.25 | 0.1974 |
| 0.50 | 0.3830 |
| 0.75 | 0.5468 |
| 1.00 | 0.6826 |
| 1.25 | 0.7888 |
| 1.50 | 0.8664 |
| 1.75 | 0.9198 |
| 2.00 | 0.9546 |
| 2.25 | 0.9756 |
| 2.50 | 0.9876 |
| 2.75 | 0.9940 |
| 3.00 | 0.9974 |
| 3.25 | 0.9988 |
| 3.50 | 0.9996 |
| 3.75 | 0.9998 |
Hold
Although I do not mention hold percentages on my site the term is worth defining because it comes up a lot. The hold percentage is the ratio of chips the casino keeps to the total chips sold. This is generally measured over an entire shift. For example if blackjack table x takes in $1000 in the drop box and of the $1000 in chips sold the table keeps $300 of them (players walked away with the other $700) then the game's hold is 30%. If every player loses their entire purchase of chips then the hold will be 100%. It is possible for the hold to exceed 100% if players carry to the table chips purchased at another table. A mathematician alone can not determine the hold because it depends on how long the player will sit at the table and the same money circulates back and forth. There is a lot of confusion between the house edge and hold, especially among casino personnel.
Hands per Hour, House Edge for Comp Purposes
The following table shows the average hands per hour and the house edge for comp purposes various games. The house edge figures are higher than those above, because the above figures assume optimal strategy, and those below reflect player errors and average type of bet made. This table was given to me anonymously by an executive with a major Strip casino and is used for rating players.
Hands per Hour and Average House Edge
| Games | Hands/Hour | House Edge |
|---|---|---|
| Baccarat | 72 | 1.2% |
| Blackjack | 70 | 0.75% |
| Big Six | 10 | 15.53% |
| Craps | 48 | 1.58% |
| Car. Stud | 50 | 1.46% |
| Let It Ride | 52 | 2.4% |
| Mini-Baccarat | 72 | 1.2% |
| Midi-Baccarat | 72 | 1.2% |
| Pai Gow | 30 | 1.65% |
| Pai Pow Poker | 34 | 1.96% |
| Roulette | 38 | 5.26% |
| Single 0 Roulette | 35 | 2.59% |
| Casino War | 65 | 2.87% |
| Spanish 21 | 75 | 2.2% |
| Sic Bo | 45 | 8% |
| 3 Way Action | 70 | 2.2% |
Footnotes
* — House edge based on Ante bet only as opposed to all mandatory wagers (for example the Blind in Ultimate Texas Hold 'Em and the Super Bonus in Crazy 4 Poker.
Translation
Casino House Edge Explained Game
A Spanish translation of this page is available at www.eldropbox.com.
Written by: Michael Shackleford
The house edge is the most important number in gambling, yet the majority of gamblers don’t understand how it rules everything about gambling, and they don’t know how to use it to make smart betting decisions.
If you fall into this category, the good news is that you’re going to learn everything you need to know on this page.
Another reason many gamblers don’t know much about the house edge is because they don’t like math, usually because they’ve never had anyone show them how to use it in an easy to understand way.
If you fall in this category, the news is even better. One of my best skills is breaking down math situations in a way that’s easy to understand. I’m going to detail the house edge in a way that a third grader can understand it.
The Basics of the House Edge
The house edge is the statistical percentage of the advantage the casino or house has in any situation. Each gambling game and activity has a built-in house edge, which is how the casinos, sportsbooks, racetracks, and poker rooms make a profit.
Some games and activities have a set house edge, and some have an edge that varies based on past events and player strategy.
Here’s an example.
What this means in real-world results is that the casino is going to keep, or win, 1.06% of all the money you bet on the banker hand in baccarat. If you make bets totaling $100, the casino is going to keep $1.06 of it.
Keep in mind that this number looks at the long-term results. In any given session, you may walk away with a big profit, a big loss, or anywhere in between. But the longer you play, the closer your lifetime results will be to equaling that 1.06% loss to the casino.
You can determine the amount by multiplying the house edge percentage times the total amount of your wagers. 1.06% converts to .0106 as a decimal. You have to convert the percentage to a decimal by moving the decimal in the percentage two places to the left.
.0106 x $100 = $1.06
Casino House Edge Explained Full
If you’ve ever played baccarat, you know that when you bet $100 at one time, you either win $100 minus the commission or lose $100. You also probably know that if you make 20 bets of $5 each, you’re not going to end up with exactly $98.94.
This doesn’t change the fact that the house edge is 1.06% or the fact that the casino makes 1.06% on all the baccarat banker bets. The casino works in volume while individual bettors work with their individual bets. Some players win sometimes, but overall, the casino makes the house edge.
Here’s another example.
Blackjack has a house edge that varies based on the specific rules and the strategy you use. The house edge in blackjack can be as low as .25% and as high as 2% or more. Card counters can even turn the house edge in their favor.
The most important thing you need to understand is that every game has a house edge, and you need to know what the edge is for the games you play.
Here’s a list of games with the house edge.
| Game | House Edge |
|---|---|
| Blackjack | .25% to 2%+ |
| Baccarat | 1.06% on the banker hand and 1.24% on the player hand |
| Roulette | 2.7% on a single-zero wheel and 5.26% on a double-zero wheel |
| Craps | 1.41% on the pass line, 0% on the odds bets, 1.36% on the don’t pass line (all other craps bets are worse) |
| Slots | 1% to over 10% (most slot machines are 3% and higher) |
| Video Poker | .25% to over 10% |
Some other gambling activities make money for the casinos in a different way. Poker makes money by charging a rake on each hand. Horse and dog tracks make money by keeping a percentage of the total betting pool. Sportsbooks make money by charging vig when you make a bet.
These three activities all offer the best gamblers a chance to make money if they can play or make decisions better than most other gamblers.
Simple Ways to Use the House Edge in Gambling
The best way to use the house edge is to make bets with the lowest edge. If you’re looking for a bet with a low house edge that doesn’t require the use of strategy or playing decisions, the banker bet in baccarat is usually your best option.
- If you’re willing to learn more about the rules of a game and learn the best strategy, blackjack and video poker are good options.
- If you’re the type of player who’s willing to work hard to have a chance to win, poker, sports betting, and race track betting are all good options.
The pass line bet backed with the full available odds is a good betting combination. The house edge of 1.41% on the pass line is higher than the edge on the baccarat banker hand, but when you back at full odds, you’re making larger bets with a 0% house edge.
Once you understand what the house edge is and how to use it, you’re in better shape than most gamblers. You can use your knowledge to make smarter playing decisions, which leads to lower losses over time.
You can also use the house edge to determine roughly how much it costs you to play the games you prefer. You can determine the expected amount you’re going to lose by using a simple formula.
Here’s an example.
You play roulette on a single-zero wheel and make 30 bets per hour of $20 each. This is a total of $600 wagered per hour.
Remember that the expected loss of $16.20 per hour is a long-term average. In any particular hour, you can lose more or less. Some hours, you’re even going to win. But the longer you play, the closer your actual results are going to be in line with the expected results.
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Improving Your Gambling Skills Using the House Edge
When you play games like baccarat, roulette, and craps, you can’t do anything to change the house edge. The long-term results are going to be a loss in line with the house edge. But this doesn’t mean you can’t use the house edge to improve your gambling skills and results elsewhere.
Here are some specific ways to improve your results now that you know about the house edge.
Blackjack
The first step is to learn which blackjack rules offer the lowest house edge. Then you find games that use the best combinations of these rules. Now find a strategy card or chart for these games, and always use the best blackjack strategy.
When you do these three things, you can usually play with a house edge of less than .5%. Sometimes, you can find games with an edge as low as .25%.
If you want to take this to the next level, learn how to count cards. A good card counter can turn the tables on the casino and play with an edge against the house.
Video Poker
The video poker house edge is based on the pay table on the machine and on how well you use the proper strategy. Learn about the best machines and the best pay tables. Then find the proper strategy chart for the machine. You can keep the house edge under .5% by following this advice.
Poker
Poker offers an opportunity to win more than you lose. The rake is a small percentage of each pot, so you can win by outperforming most of your opponents. This isn’t especially easy, but with enough practice and knowledge about all the different poker strategies, you can do it.
Sports Betting
Sports betting profits are in the form of vig charged by the books. If you learn how to handicap games and shop for good lines, you can overcome the vig and show a long-term profit. Just like poker, this isn’t easy, but it can be done.
Conclusion
Casino House Edge Explained Download
Understanding and using the house edge in gambling isn’t hard. All you have to understand is how the edge cuts into your profits and how to reduce the edge as much as possible.
By using this information on the house edge, you can make your bankroll last longer, and you can start looking for ways to actually become a winning gambler.