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Learn All About House Edge and Win More

Whether you are playing free or real money casino games, the house edge is among the first things you should consider. Unfortunately, many Filipino players overlook this when choosing what games to play. In fact, one of the biggest challenges for both new and seasoned players at online casinos in the Philippines is determining the house edge.

Simply put, the house edge is the default advantage that the casino has when you play real money games. Moreover, determining it cannot be achieved in a single game session.  Although a higher one doesn’t mean you will lose every time, the house edge certainly impacts your profits in the long run. So, to learn more about it and how to get the most out of real money gambling stick around until the end of this guide.

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What is a House Edge?

Many new players wonder how online casinos make a profit. Actually, it’s pretty simple – every game you play at real money casinos has a house edge. Hence, the casino has an advantage over the player at all times. In other words, the house edge is the percentage of your wager that the casino keeps as profit. 

Because of it, online casinos can afford to cover the costs of offering many games and still profit. Of course, this doesn’t mean that players can’t profit, too. However, playing smart and choosing the games carefully is a major condition if you want bigger wins. So, the lower the house edge, the greater the chances of winning big and vice versa.

House Edge Vs. RTP Percentage

Many players tend to get confused between the house edge and the theoretical return to player (RTP). In a nutshell, the house edge is the casino’s advantage while the RTP is what players expect to win in the long run. Calculating both of these is not too complicated, so anyone can do it. Being able to do that is important, as every casino has a different RTP and/or casino advantage.

Online Casino Game House Edge

How to Calculate the House Edge

The casino advantage can vary greatly depending on the casino and the game you’re playing. Moreover, in order to calculate it, you need to know the gameplay and rules of the game, also some knowledge of mathematics. However, the actual calculation is pretty straightforward and doesn’t require any complicated math. In fact, all you need is a couple of formulas:

  • House Edge = (Odd Against Success – House Odds) x Probability of Success

From here, you just multiply the edge by 100 to convert it into a percentage and that’s it.

  • House Percentage = House Edge x 100

For example, we can use European Roulette, This game has one green zero, so your odds are 37:1, and your payout is 35:1.

  • House Edge = (36/1 – 35/1) x 1/37 = 1/1 x 1/37 = 1/37 = 0.0270270.

According to the formula

  • House Percentage = 0.0270270 x 100 = 2.70%
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Casino Advantage in Different Games

Every casino game comes with a different return to player (RTP) and house edge. Seasoned players know that the secret to winning more is to play the ones with the lowest edge. Some of the things that impact its size include the software provider and your own strategy. Here is what casino advantage percentages you can expect from the different kinds of casino games:

  • Online Slots – 1% to over 10%
  • Blackjack – 0.5%
  • Roulette – 2.75% to 5.26%
  • Baccarat – 1.06% to 1.24%
  • Craps – 1.41% 
  • Video Poker – 0.25% to over 10%

The House Edge of Online Slots

Like other casino games, online slots are designed to return a specific amount after a certain number of spins. But how this algorithm is set up depends on the casino, the software provider, and many other factors. Either way, the RTP shows you what to expect to win from the game in the long run. The remainder is the house edge, and this is what the casino keeps. 

For instance, if a certain slot game has an RTP of 96.5% then, naturally, the casino advantage will be 3.5%. So if you wager $100 on this game, you can expect to win $96.5. In this case, the casino gets to keep only $3.5. But as accurate as these figures may be, with games like online slots it’s all about chance. Therefore you should be prepared to get a different amount every time. The RTP and casino advantage figures are just an average but they help when deciding what games to play. The higher the probability of winning, the better.

Additionally, it is essential to understand the hourly expected loss of online slots. Basically, this is the average loss expected per hour of gaming. To calculate that, use this simple formula:

  • Average Loss = Spins per hour x Bet Amount x House Edge x Number of Hours
How to Beat the House Edge

How to Minimize the Casino’s Edge

Although every game you play will have a house edge, there are still some things you can do to tip the scales in your favor. Of course, you can’t really get rid of the casino advantage but you can minimize it. Here’s how:

  • Play games like blackjack and poker – the casino has less advantage;
  • Look for games with favourable odds, such as European Roulette;
  • Always apply a strategy to boost your chances for big payouts;
  • Take advantage of the casino bonus offers, they will help you play longer;
  • Maximize your bets on selected games.

In Conclusion

Regardless of whether you are planning on playing casino games for fun or real money, the casino advantage will impact your experience. Hence why it’s in your best interest to learn what it is and master how to calculate it. Fortunately, although casino games have varying house edge percentages the formula is always the same. Moreover, it’s such a simple calculation that anyone can do it. But with so many gaming platforms in the Philippines, it can be tedious to do all the math on your own in search of the best casino. So we’ve done the research for you and you can discover the top online casinos on our review page.

FAQ

No, the house edge can vary greatly across platforms. It varies depending on the casino itself, the game type, and the software provider.

The casino games with the lowest house edge are blackjack, baccarat, and craps.

No, the house edge does not imply that you will lose all of your bets. It is only a theoretical figure that shows you what average winnings to expect in the long run.

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