The Built-In Advantage of the Casino
Ever heard the phrase "the house always wins"? This saying describes the house edge, the core principle upon which all casinos operate. It is the casino's built-in mathematical advantage over the player in any given game. Understanding it is crucial for any smart gambler.
How is the House Edge Calculated?
The house edge is derived from the difference between the true odds of winning a bet and the odds that the casino pays out for that win. Consider an example from the game of Roulette:
The wheel has 37 numbers in total.
The actual probability of your number coming up is 1/37.
A winning bet is rewarded with a 35-to-1 payout.
That small difference is where the casino gets its edge.
In this case, the house edge is 2.7%. This means that for every $100 bet on the wheel over a long period, casino the casino expects to make an average profit of $2.70.
House Edge in Different Casino Games
Not all games are created equal