What Is Casino House-Edge and How to Keep It to a Minimum
Casinos make money by offering games which have a small edge in their favor. Players can and do win over short time periods, but with over millions of combined hands, spins and rolls of casino games, the house will generally walk away with a profit in the end. This article explains how house-edge works, how it affects your decision making and also gives you some useful tips for keeping house edge to a minimum while you play.
First up, you will find an explanation of how the house edge works, and how this interacts with the swings (or variance) of casino games. After that we have listed some casino games with the lowest house edge, along with some with higher edges that you might want to avoid. Following this you will find an overview of how casinos make extra money above and beyond the edge built into their games. At the bottom of this page you will see some handy tips on keeping the house edge to a minimum.
Overview of Casino House Edge – How House Edge Works
The mathematical edge in favor of the house in manycasino gamesis tiny, and in some cases less than 1%. Yet casinos have built huge resorts and report billions in earnings every year. This can feel like a discrepancy, until you take the velocity of betting into account. That 1% is can be seen as a tax on every dollar wagered. For example if someone plays a $5 hand of blackjack 300 times in a session, then they are paying on average 5c (1%) x 300 hands – or $15. Multiply this by five players (and higher stakes), plus add in the extra edge from side-bets and player mistakes, and you can see that the casino house edge creates a steady stream of income for them.
All games have an edge built into them in such a way as to ensure that the casino wins. Betting systems have tried to beat the edge for centuries, and have yet to be successful. The only system known to beat the edge is blackjack card counting, which looks to increase bet sizes when the deck is favorable to the player. Unfortunately casinos have a habit of banning players who beat them very quickly, so even this system is not viable in the long-run.
Overview of Casino House Edge – Games with Different House Edges
There are huge differences in the house edge which is built into different casino games. Bear in mind that the number of bets you make each hour does make a big difference. For example if you play a game which had twice as many bets per hour, then the house edge could be half of the original game and still ‘cost’ you the same amount.
Blackjack has the lowest house edge, this generally starts at 0.36% and goes up to around 1% with different splitting or doubling down rules included. Another very low edge game is Baccarat, which is favored by high-rollers. The edge for banker bets is just 1.06% here, though the tie bet needs to be avoided. Completing the low edge games list is Video Poker, with just 0.46% on some jacks or better machines.
In the mid-range comesCraps, which varies from 1.36% with the ‘don’t pass’ bet. Roulette games with a single zero start at 2.7%, though adding a second zero makes this game 5.26%. This means you should avoid the double zero wheels whenever possible. Three-card poker starts to get higher, with a 3.37% built in advantage on the ante + play bet. With this game the Pairs+ side-bet is the killer, with a 7.28% house edge.
Some games have edges so high that they should definitely be avoided. These includeCaribbean Stud Poker, which is 5.22% in favor of the house, Sic-Bo which starts at 2.78% and goes much higher and the worst of all, Keno, which starts at 25% in favor of the casino.
Side bets are the silent killers of your bankroll. Even simple side bets rarely have less than a 7% edge, and some of them go as high as 14%. Progressive jackpot bets are the very worst wagers in the casino, sometimes having a 40%+ edge.
Overview of Casino House Edge – Mistakes Add to the Casino Advantage
House edge is not the only way that casinos make money, with player mistakes being a big money maker in certain games. Blackjack is the best example. Here mistakes with hitting / standing incorrectly can add 15% or more and even seemingly subtle mistakes like not optimally splitting hands can add a few percentage points.
Taking insurance against dealer blackjack is the biggest mistake of all in this game. Players are giving up 12.5% every time they try this. Craps ‘horn’ bets can be seen as mistakes too, since they have terrible odds compared to the main bets in this game.
Overview of the Casino House Edge – How To Minimize
Smart gamblers go out of the way to keep the house advantage to a minimum. Here are some of the ways you can do this.
First you need to learn the optimal play for your game; this includes fine details, since even subtle leaks can get expensive over time. For Blackjack this involves learning a strategy card which is optimized for the rules and number of decks in your game.
Second you need to avoid side-bets and jackpots. This does take the enjoyment of the game for many people, so a more reasonable way of putting this might be to say only bet on jackpots with money you can afford to lose.
Third, switch away from the worst games. You’ll find plenty of great casino games with low house edge – try these instead and your money will last longer.