Casinos offer people the rush of adrenaline and the opportunity to take home big wins if they’re willing to risk. However, that doesn’t mean that the odds of winning and losing are 50/50. At the end of the day, casinos are in operation to make money. Their goal is to entice players with decent enough odds while ensuring themselves a profit. As the saying goes – “The house always wins”. Today we’re going to talk about how the house’s edge is assured, what RTP is, and how they vary among different game genres.
What does house edge mean exactly?
House edge is an indicator of the built-in advantage that a casino or game provider gives itself. It’s expressed as a percentage of the portion of player bets that it expects to keep in the long run. It’s calculated based on the difference between the true odds of winning a bet and the payout odds the casino offers. Certain genres have much lower house edges than others yet those with a higher house edge also offer much bigger prizes.
Here’s how genres compare:
- Aviator game has a completely variable house edge, depending on how long the player wishes to wait to pull the trigger;
- Blackjack: this game is famous for player’s ability to shift the odds to their favor by counting. Now that casinos use extra decks, players can still reduce the house edge to as low as 0.5%;
- Video poker: 0.5% or higher. This depends mainly on skill and ability to bluff;
- Slot machines: These vary super widely, from a couple to ten percent;
- Roulette: the European variety gives a more generous house edge of only 2.7% while the American one is 5.26%, due to having an additional double zero;
House edge vs RTP
Both of these are opposite sides of the same coin. The former is the advantage in probability that the house enjoys over the player. A house edge of 5% means that the house will win five percent more often than players. Return to player, or RTP, is the amount of money players bet that go back to them on average. That’s the portion of overall bets that the casinos doesn’t claim on average. With an edge of 5%, the RTP is consequently 95%. Many casinos broadcast the RTP that they offer in individual games, helping players understand what to expect. If they don’t, this is a reason to potentially look elsewhere.
In addition to these factors, there also exists a payout structure. Individual games normally have different payouts, so players can risk as much as they want to try for a substantial amount or the whole pot.
Impact on players
The design of the house edge is such that the longer players play, the closer their overall winnings will get to the casino’s average winning probability. This is how all probabilities work – the larger the sample size, the greater the reversion to the mean. In the previous example, if you keep playing the same game featuring a 5% house edge for months or years, it will eventually result in an overall experience of you having given the casino 5% more than you’ve taken home.
Misconceptions about house edge
The house edge does not predict immediate results. Some people think it will apply in every session. This is not the case. Unless a player is a consistent, serious gambler, any given player is unlikely to reach the specific same RTP that games average out at.
RTP by genre
It’s good to keep in mind that the highest RTP doesn’t necessarily mean that that’s the game you’ll enjoy playing the most or prefer. If you prefer to win due to the competition aspect, then smaller gains and surer bets are the way to go. If, however, you are more of an adrenaline junkie and want to go all in to win big, you’ll be more interested in lower RTP games because those ones also provide more variance, which means less frequent, but more substantial wins.
- Blackjack: the average RTP is 96-98%. This is one of the most player-friendly games. With enough skill, RTP goes up to 99.5%;
- Roulette: 94.74% to 97.3%. There is no skill involved in this game, only in terms of the pace of the bets one would like to place;
- Slot machines: 90% to 98%. These offer some of the biggest prizes, bonuses, and jackpots.
- Poker: This is all about the player’s cunning and ability. Experienced players can achieve an RTP of well over 100% while novices will lose heavily. Casinos also offer winnings through a “rake” (5-10% of the pot in cash games or tournament entry fees);
- Sports betting: typically 90-95%, depending on the odds structure and the sportsbook’s vig (commission);
- Baccarat: the banker bet has an RTP of 98.94% with the player bet at 98.76%. Tie bets, in turn, are much worse with only an 85.64% RTP;
- Craps: a pass/don’t pass bet is 98.59% or less than 90% for proposition bets.
On an interesting note, lawmakers are considering imposing a higher tax rate on new states adopting internet gambling, according to the Seattle Times.
Strategies to minimize house edge and maximize RTP
Despite that, players cannot change the mathematical advantage that casino games have, there are ways to mitigate the house edge.
Here are several of them.
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Opting for a high RTP and low house edge
Research casinos on the Internet. A good number to shoot for is at least 96%. The skill-based games are the ones that offer the most generous RTP.
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Seek out and master efficient strategies
When it comes to blackjack, you can study strategy charts that show the optimal move for every possible hand combination. There are also strategy guides for different variations of the game, such as jacks or better or deuces wild.
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Take advantage of bonuses and promotions
Many casinos offer very generous welcome bonuses, free spins, and cashback promotions. These can effectively reduce your cost of play and extend your playing time. However, you should be very careful and take these promotions with a grain of salt, as their terms and conditions are normally very demanding. You normally have to deposit and bet at least the amount of the bonuses. Free spins are offered on a daily basis though, and if you are a regular gambler, you can certainly gain significantly from cashback, which is normally credited in proportion to your deposits.
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Avoid casinos and games that don’t publish the RTP
Casinos aren’t required to publish this and it’s not a good sign for your winning odds if gambling operators keep that a secret.
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Opt out of high-house-edge bets
Proposition bets like Any 7 or Hardways in craps have a much higher house edge compared to standard bets. Side bets in games like blackjack or baccarat often carry much higher house edges too and should be avoided unless you’re doing it purely for entertainment.
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Quit while you’re on top
If you bet too fast, you risk running out of money. It’s better not to bet more than 5% of what you’ve set aside for gambling in a single round. By prolonging your gaming, you can play conservatively and then quit once you’ve had some decent wins.
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Play for entertainment, not profit
Especially since the house has at least a slight advantage over you already, it’s not wise to look at gambling as a way to make an income. What it really is is entertainment. It’s up to you to decide how much you’d like to shell out for the hobby along with how much adrenaline you’d like (while remaining within healthy limits).
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Practice on demo versions
Since there are some games that require getting used to or building skill, you’ll have better monetary results if you practice them first without starting by wagering. Then, only afterwards, start betting real money.
