What is house edge? Most players who are just starting the games have no idea about this phenomenon. In short, it is the small built-in advantage every casino game has, baked into the odds before you ever place a bet. But there are a lot more details that you need to know about the online casino house edge before playing. So, we created this guide to define what house edge actually means, how it's calculated, and what it looks like across different types of games.
What Is the House Edge in Casino Games?
House edge is the mathematical advantage that a casino has over players in any game. It shows how much the casino expects to keep from all bets over time. For example, a 4% house edge means the casino keeps about $4 out of every $100 wagered in the long run, not from each $100 bet.
Why Casinos Need a House Edge
Casinos are businesses, so their games need a built-in edge to stay open. You can think of it like a small markup on a product. It doesn't remove the value of what you're buying; it’s just how the business works.
House Edge vs Player Odds
House edge and player odds are two ways of looking at the same thing. A lower house edge means the odds tilt closer to even between you and the casino, while a higher house edge makes the gap bigger. Still, neither number can predict what will happen in a single session. House advantage applies to every casino game in some form, from slots to table games.
How Is House Edge Calculated?
The Basic Formula
To find the house edge, compare the real odds of winning to what the game pays out. Multiply your chance of winning by the payout, then subtract your chance of losing times your bet. The answer, as a percentage of your bet, is the house edge.
Real Example: Calculating House Edge in Roulette
European Roulette has 37 pockets, numbered 0 to 36. If you bet on a single number, you get paid 35 to 1, but your real chance of winning is 1 in 37. This creates a 2.7% house edge. American Roulette adds another zero, raising the house edge to about 5.26% because of that extra pocket.
Factors That Influence House Edge
Game rules can change the house edge more than most people think. In Blackjack, things like how many decks are used, what the dealer does on soft 17, and the payout for a natural Blackjack can each change the edge by a small amount.
House Edge vs RTP: What's the Difference?
The Mathematical Relationship
House edge and RTP (Return to Player) are two sides of the same coin, and together they always total 100%. If a game has a 4% house edge, its RTP is 96%. Knowing one tells you the other.
Which Metric Should You Focus On?
Neither number is better or more correct; they just show the same thing in different ways. RTP is usually used for slots, while house edge is common for table games. If you want to learn more, our volatility guide explains how RTP and volatility work together.
House Edge by Game Type
Every category of casino game carries its own typical house edge range.
|
Game Type |
Typical House Edge |
| Blackjack (basic strategy) | Under 1% |
| Baccarat (Banker bet) | Around 1.06% |
| Craps (Pass/Don't Pass) | Around 1.36% to 1.41% |
| European Roulette | Around 2.7% |
| American Roulette | Around 5.26% |
| Slot machines | Roughly 2% to 15%, varies by title |
| Video Poker (optimal play) | Often 0.5% to 2% |
Table Games
Table games can have very different house edges depending on the bet you make. Side bets and rare wagers usually have a much higher house edge than the main bets.
Slot Machines
Slot machines vary more than any other category, since every title sets its own math model. Two slots can look nearly identical and carry very different house edges once you check the published RTP.
Roulette Variants
European and American Roulette use the same type of wheel, but the extra zero on the American version almost doubles the house edge. French Roulette can lower the edge even more with the "la partage" rule, which gives you back half your even-money bet if the ball lands on zero.
Video Poker
Video Poker sits closer to Blackjack than to slots, since correct strategy meaningfully changes your results. Playing a hand incorrectly can add a percentage point or more to the edge without you noticing.
Casino Games with the Lowest House Edge
If you're looking for the lowest house edge casino games, there are a few good choices, but they all assume you play with the best possible strategy.
- Blackjack: Under 0.5% with solid basic strategy, one of the lowest of any casino game.
- Baccarat, Banker bet: Around 1.06%, even after the standard 5% commission on wins.
- Craps, Pass/Don't Pass: Around 1.36% to 1.41%, among the better bets at the table.
- European Roulette: 2.7%, meaningfully lower than American Roulette's 5.26%.
- Certain Video Poker variants: As low as 0.5% with perfect strategy, though weaker paytables push that number up substantially.
Keep in mind that platforms like BitOfGold use virtual coins instead of traditional casino betting. The numbers here show the general math for each game type, not for any specific game. Platforms like Fire Kirin also use slot and arcade games based on the same RTP and house edge ideas.
How to Use House Edge When You Play
Once you know what house edge is, here's how to actually use that number when you play.
Setting Realistic Expectations
House edge shows what happens over thousands of rounds, not in just one session. It's normal for your results to go above or below that number in the short term because of luck.
Choosing Games Based on Your Goals
If you play just for fun, house edge is less important than picking a game you like. But if you care about the numbers, knowing the house edge can help you set your expectations before you play.
Bankroll Considerations
A lower house edge usually means your money lasts longer during a session, if everything else stays the same. Our guide on How to Play Slots and Win, goes deeper into bankroll management alongside RTP and volatility.
Common House Edge Myths and Misconceptions
"The House Always Wins": What This Really Means
This phrase describes a long-term statistical guarantee across millions of bets, not a rule about your individual session. Plenty of players finish ahead on any given night; the house edge just describes the aggregate over time.
Can You Beat the House Edge?
For most players, the house edge is simply the cost of entertainment, similar to a ticket price. Skilled advantage play in games like Blackjack can shrink or occasionally overcome it, but that takes real study, not luck.
House Edge vs RTP: Are they the Same?
House Edge and RTP are complete opposite notions. So, for instance, in slots that have 95% RTP, it means that the house edge is 5%. So the remaining part from the RTP is the house edge in every game.
FAQ
What is house edge in casino games?
To answer what is house edge in plain terms: it is the mathematical advantage a casino holds over players in a game, expressed as a percentage. A 2% house edge means the casino keeps about $2 from every $100 wagered over the long run.
How is house edge calculated?
House edge comes from comparing a game's true odds against its actual payout. A European Roulette single-number bet has a 1 in 37 chance against a 35 to 1 payout, working out to a 2.7% house edge.
What is the difference between house edge and RTP?
House edge and RTP describe the same math from opposite sides, and they always add up to 100%. A 4% house edge means a 96% RTP.
Which casino games have the lowest house edge?
Blackjack with basic strategy often sits under 1%, alongside Baccarat's Banker bet around 1.06% and Craps bets around 1.36% to 1.41%. European Roulette sits at 2.7%, notably lower than American Roulette's 5.26%.
Does the house always win?
The house holds a statistical edge that plays out over thousands or millions of bets, not on every wager. Individual players win in the short term regularly, since variance is part of how these games work.
Is a lower house edge better?
A lower house edge generally means more wagered money returns to players as a group over time. It doesn't guarantee any individual result, just more favorable long-run math.
Can you beat the house edge long-term?
For most casino games, the house edge holds up over the long run regardless of approach. Skilled play in Blackjack or Video Poker can reduce it, though rarely eliminate it.
Does house edge apply to every single bet?
House edge is a statistical average, not a rule enforced on each bet. Over hundreds or thousands of rounds, results tend to move closer to what it predicts.
This content is for informational purposes only and is not legal advice. Casino gaming involves risk, and outcomes are never guaranteed. Play should be for entertainment purposes only, within limits you're comfortable with. Ready to put any of this into practice? You can start playing anytime. This content is intended for players 21 and older. If gambling stops feeling like entertainment, free and confidential support is available through 1-800-MY-RESET.