Casino House Edge – Explained
The house edge is defined as the casino profit expressed as the percentage of the player’s original bet. There are many factors attributing to house edge which may include complex mathematical formulas. In fact, this is how there are some players that use an advance mathematical formula to manipulate the house edge as much as they can in their favor. We are going to explain it in the simplest way without involving engineering-like formulas:
To nobody’s surprise, the odds in every game in the casino puts the advantage in casino’s favor. The games on the surface appear to be even, but there is always a small catch that tips the favor to the casino.
In Blackjack, for instance. The players has to play first meaning they might bust first, the game is set up so that the casino will win about 55% of the time. In roulette, the presence of the green 0 makes it so that a red/black bet isn’t exactly 50/50. If the player bets on red/black, the casino will win about 53% of the time.
This doesn’t seem like a lot, but when thousands of bets are made it would naturally add up over time. Assuming that player only plays red/black, the casino should win about 530 times every 1000 bets. If the minimum bet is $10, then the casino should earn about $5300 for every 1000 roulette bet.
In the case of roulette, the mathematically fair payout the casino should provide for straight-up bets should be 36:1. Instead, the odds provided for straight-up roulette bets across the world is set at 35:1. This is an example of house edge at play, being that the advantage leans on the side of the casino. Even when the player wins, the payout is slightly skewed and if the player loses, the casino takes the wager.
Why Play if There is an House Edge?
Now you may think, why bother playing if there is an house edge and the casino wins every time? Now, this is where it may be a slight confusion. House edge are not entirely malicious. There is a clear distinction between independent bets and overall house edges, players still stand a chance to win in every bet as each unique bet stands independent on its own.
Even with house edge at play, it is still possible to win. The house edge influences the general revenue flow of the casino on a large scale, but it does not directly influence the chances of you being able to draw a Jack and an Ace playing Blackjack. House edge does not work in a way that skews the outcome of your bets directly. As it is with most things, exercise caution and you will come out just fine.
Apart from that, at the end of the day there’s still entertainment value coming out of it. Unless you just go all-in every time you bet, a $100 deposit can go a long way