The house edge represents the mathematical advantage that a casino maintains over players in any given game. Expressed as a percentage, it indicates how much of each wager the casino expects to retain over the long term. Understanding house edge is fundamental to making informed decisions about casino gaming.
For example, if a game has a 2.7% house edge, the casino expects to keep approximately $2.70 from every $100 wagered on that game over time. It's important to understand that house edge operates over extended play—short-term results can vary significantly due to variance and luck.
Different casino games feature vastly different house edges. Some games, like blackjack when played with basic strategy, offer house edges as low as 0.5% to 1%, while others like keno might feature edges exceeding 25-40%. This variation stems from the mathematical structure of each game and the odds involved.
House edge should not be confused with the return to player (RTP) percentage. While RTP indicates what percentage of total wagers is returned to players over time, house edge represents what the casino keeps. These two figures are complementary—a 98% RTP corresponds to a 2% house edge.
Players who understand house edge can make strategic choices about which games to play based on their preferred gaming style and risk tolerance. Lower house edge games provide better long-term value, though they may feature different volatility patterns and gameplay experiences compared to higher edge games.