House Edge

House edge is the casino’s edge over you. It’s how much the casino expects to win from your bets in the long run. House Edge may also be called casino advantage.

Even if it seems that everything depends on chance in the game, the house edge is still higher. That is why, the owners of gaming sites and get huge profits.

House edge is a percentage of your initial bet that you lose on average. The House Edge of 0% means you can expect to lose $0 for every $100 bet, which is a completely fair game.

How to Calculate House Edge

The formula for house edge is:

• House edge = (% of losing – % of winning x payout ratio) x 100%

For example, let’s calculate the house edge for a single number bet in European roulette. The probability of winning this bet is 1/37, and the payout ratio is 35:1. Therefore, the house edge is:

• House edge = (36/37 – 1/37 x 35) x 100% = 2.7%

This means that for every 37 times you bet on a single number, you can expect to win once and get paid 35 times your bet. 

House Edge Examples

House Edge vs RTP

House edge and RTP (return to player) are two sides of the same coin.

RTP is how much you expect to win from your bets over time. 

• House edge + RTP = 100%

For example, if a game has a house edge of 5.12%, then the RTP is 94.78%. This means that for every $500 you bet, you lose $25.6 on average, and get back $474.4.

Therefore, house edge and RTP are inversely related: 

• House edge = 100% – RTP

How to Reduce House Edge

• Play games with lower house edges. Blackjack, video poker, and baccarat are some of the best games to play.
• Use optimal strategies. Learn and apply the best strategies for each game. You can find some strategy guides.
• Avoid bad bets. Stay away from side bets and progressive jackpots. They have high house edges and low chances of winning.
• Manage your money. Set a budget and stick to it. Quit when you are ahead or behind.

Look for House Edge in Macau

The list below is about casino game currently offered in Macau, ranked in order from best to worst.

House Edge

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