House edge

The house edge is the casino's built-in statistical advantage, which ensures that over the long run the casino stays in profit. It is expressed as a percentage and calculated as 100% − RTP: if a game's RTP is 96%, the house edge is 4%.

The house edge does not mean you are bound to lose — in a single session you can win. It describes the average outcome over a very large number of games. The lower the house edge, the more player-friendly the game.

Different games have different house edges: blackjack with correct strategy is under 1%, while some slots or wheel games are several percent. Knowing the house edge helps you pick games where your money lasts longer.

What the house edge does to your money

The expected loss does not depend on your deposit but on the total amount wagered: total bets multiplied by the house edge. Example: on 1,000 euros of bets, a 4% house edge gives an expected loss of 40 euros, while a 0.5% edge gives 5 euros. A 100 euro deposit can produce 1,000 euros of bets, because winnings go back into play and every new round carries the same edge.

A roulette example: European roulette has a single zero, so the house edge is 1/37, about 2.7%; American roulette has a double zero and an edge of 2/38, about 5.3%. The same bet therefore costs roughly twice as much on average at the American table.

What the house edge must not be confused with

• Volatility. The house edge shows the average loss, volatility shows how swingy the result is; at the same edge one game can pay frequent small wins and another rare large ones.
• Short-term results. Some sessions end ahead, but the more you play, the closer the result moves to the edge.
• Game versions. Some slots can have several RTP settings; check the game's info page to see which one you are playing.
• Bonuses. Wagering increases total bets and so the expected loss; see wagering requirement.

You cannot remove the house edge with strategy, but you can choose a game with a lower edge and plan your bets using the rules of a game of chance. Work out your own example with the house edge calculator or the expected loss calculator. Background: Wikipedia: House edge. If play starts to get out of control, seek help at 15410.ee.