Even experienced players can’t always explain what house edge means. Not every casino player understands how house edge is formed. It’s time to investigate this topic. It’s much more effective to play knowing all the details.
There is no generally accepted definition of a house edge. Usually it’s a ratio of official payouts and real payouts. Real payouts are less than potential payouts according to probability theory. Let’s take a look into European and American roulette.
In European roulette, there are 37 numbers, including 0. If you bet on one number wins, you get $35 instead of $36 (according to probability theory). In American roulette, the player gets even less, due to double zero cell, i.e. the player loses $2 for every spin, if they bet equal amounts on all numbers on the field. If the player bets on equal chances, they get paid 1:1. If zero comes out, the player loses. This is house edge that forms its profits.
House edge differs from game to game. Sometimes, the player may have an edge, e.g. in video poker or blackjack. The winnings in these games depend on following certain strategies. As a rule, experienced players are kept away from casinos by all possible means.
Most games offer a quite large house edge. You can study statistics on different games. This information helps you choose the most beneficial game. Very often, your personal preferences can lead to less successful results due to extremely high house edge. This is true for American roulette and Keno – both of these games offer over 20% house edge. In general, the more information on bets you get, the higher are your chances to succeed.