What is House Edge? - Full Guide for UK Players

What is the House Edge?

The house edge is the amount of money staked on a game that is guaranteed to be kept by the casino (or the house). This edge is built into the game itself, such as the green pockets on a Roulette wheel or the commission on banker hands in Baccarat. It means that no matter how lucky you are, in the long run, if you play for long enough, there is a mathematical guarantee that you will lose more than you win. 

For example, American Roulette has a house edge of 5.26%. This means that for every £100 wagered on a roulette game at a casino, the house will keep £5.26 on average. And this will change between games and the different bets you make on them. 

The house edge may sound unfair, but it's an integral part of how the casino works. The casino has to ensure profit one way or another in order to pay for the building, staff, maintenance, food and additional entertainment. The same goes for online casinos, which have their own form of upkeep, website maintenance, and licensing fees. 

House Edge vs Return to Player (RTP)

If you spend more time playing through online casinos rather than at brick-and-mortar, you've probably encountered the term 'Return to Player' or 'RTP.' And if you know what it is, you might be wondering how it's any different from the house edge.

The answer is that it isn't different. RTP and the House Edge are simply inversions of one another. 

While the house edge tells you how much money the casino keeps at the end of the day, Return to Player tells you how much goes back to the bettors. So, a game with a 4 house edge could also be said to have a 96 RTP. 

In general, we see RTP applied more to online slots than to table games. This is mostly a marketing push, as it's more pleasant to advertise a game as returning 97 of all stakes to the player than saying the casino will keep 3 of anything bet on the game. 

How to Use the House Edge

While the house edge can be a bit of a pain for your average player, it doesn't have to be such an obstacle. Understanding the house edge and what it means allows you to work around and with it to better inform your wagers. 

For one, the house edge can inform which games you choose to play. If you're concerned about maximum potential returns, choose a game with a lower RTP, like blackjack, baccarat or a slot game with a high RTP. It also helps you avoid high-loss games and pointless side bets. 

Alternatively, it can simply help you manage your expectations. If you go into a game of American roulette, you can understand how much you're likely to lose depending on how you bet and how long you play. 

House edge shouldn't act as a deterrent for casino games. It's simply something to keep in mind as you play and manage your spending. 

The House Edge on Table Games

Each game in the casino has a unique house edge. However, it's not so simple as to give a game a number and call it a day; the house edge changes depending on the bet you're placing, so it pays to understand the intricacies of each game. 

Blackjack

Blackjack is renowned for having the best house edge of any game on the casino floor. Depending on how good you are at the game and which variation you're playing, the house edge could be as low as 0.5%! This isn't always guaranteed, of course, and the banker has a slightly better chance at winning, thanks to the order of play. But if you're concerned about giving yourself the best probability of winning something, Blackjack will be your best friend. 

It's also worth noting that Blackjack is one of the few games in the casino where skill is a factor. Understanding the basics of the game and having a lot of practice can increase your chances of performing well. However, you'll never be able to eliminate that house edge. 

Roulette

Roulette is well known for having a very steady house edge, depending on which bets you make. When you see the house edge of roulette listed, that number will be the house edge on half-chance, outside bets rather than any of the smaller, inside bets.

The house edge in roulette is dependent on the green 0 spaces on the wheel. Depending on what type of roulette wheel you're playing on, there could be one, two or even three 0 spaces. Here's a small house edge list for the most popular roulette wheels you can find:

• French Roulette — 1.35%

• European Roulette — 2.70%

• American "double 0" Roulette — 5.26%

• Triple 0 Roulette — 7.69%

French and European Roulette only have a single 0 pocket on the wheel, which is why the house edge is so low. French Roulette also has additional rules to bring the house edge down even further. Double 0 roulette has been popular in the US and Vegas for years and is notable for having a higher house edge. And in the last decade, we've started to see the implementation of triple 0 roulette in US casinos, which has a terrible house edge of almost 8%.

The trade-off is that roulette games with lower house edges often have much higher minimum bet limits. So, if French and European roulette are available, it's usually just for the high-rollers. But if you're playing online, do your best to find one of these wheels. 

Baccarat

Baccarat has an excellent house edge at just 1.06 when you bet on the banker and 1.24 when you bet on the player. Thanks to this, regardless of what you choose to bet on, baccarat has a great house edge. However, you should bear in mind that because the banker's hand has that improved house edge, it also comes with a 5% commission on any winnings. This doesn't apply to any Baccarat side bets, and most experienced players recommend avoiding them. 

Poker

Poker doesn't actually have a house edge. Poker games are played against other players, not against the house, so there's nowhere in the game for the house to make its edge. Instead, Poker uses something called 'rake' to make a casino or poker house a profit. Rake is essentially an admission fee; the house will charge an amount of money for you to sit at the table in the first place. So, while you don't have to worry about house edge while playing poker, the house will still make its money, regardless of how well you play. 

The House Edge on Slots

As we've mentioned, the house edge is presented differently on slot games than on other games. Online slots all list their RTP clearly on the game's page, and the average is usually around 96 or 4 house edge. This is comparable to American Roulette, but slot RTPs can veer wildly in either direction. 

The house edge on a slot game is much harder to see than on table games. While a game like roulette has a very obvious house edge in the green pockets, the house edge on a slot game is baked into the programming and RNG. However, there are plenty of fairness testing houses that run extensive tests on slot games to ensure they run on random number generation. In the UK, all online casinos require a fairness certificate to qualify for a gambling license. 

Progressive Slots

Progressive jackpot slots are a little different when it comes to RTP. If you play any of these, you'll quickly realise that the house edge on progressive is far higher than most other slots, averaging around 10 (90 RTP). However, the trade-off for the much lower win rate is those jackpots. It'll be a personal choice whether you're willing to take that risk for the chance at a much bigger jackpot. 

Which Game has the Lowest House Edge?

Blackjack is generally accepted as the game with the lowest house edge in the casino (excluding outliers like poker). Depending on the game, Blackjack can have a house edge as low as 0.5. Following this would be baccarat, with a 1.08 house edge when you bet on the banker's hand. 

Aiming for games with the lowest house edge can give you a leg up in probability. However, you shouldn't let this dictate the games you play. There are plenty of things to consider before picking a game. Games with higher house edges will also have lower minimum bets, making them easier to play on a budget. You may also just prefer roulette to blackjack, and that's fine! When you go to the casino, you shouldn't count on making a profit; instead, you should simply enjoy yourself. 

House Edge in Sportsbetting

We've been talking about casino gaming for this article, but this is hardly the only gambling activity where we see house advantages. Sportsbetting doesn't technically have a house edge but instead includes something called 'juice,' 'vigorish,' or 'vig.'

Juice is a lot like rake in poker, where you pay a certain amount to the bookie for the privilege of placing a bet. While this used to be much more upfront, with modern online sportsbooks, you don't need to worry about this at all. The juice is now baked into the odds themselves, so you can make bets without worrying about the house edge at all. 

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Responsible Gambling

The house edge proves that the house always wins, which also shows us just how important it is that we maintain responsible gambling habits. Losses are inevitable, so managing how much we spend and are prepared to lose when gambling is crucial. 

You'll find plenty of tools available to you at online casino sites to help you manage your bankroll and habits. So here's a quick list of what you can do today to help control your betting: 

• Set a deposit limit on your online casino

• Keep track of your spending habits

• Enlist loved ones to hold you accountable

• Call a helpline

• Make use of time-outs and self-exclusion