The Mathematics Behind Casino House Edge

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Every single game on a casino floor is meticulously designed with a built-in mathematical advantage for the operator.


This mathematical advantage is universally known as the 'house edge,' and it is the secret to their massive profits.

Explaining the Statistical Profit Margin

Casinos make their money by paying out slightly less than the true mathematical probability of a win.


The presence of the green zero on the roulette wheel is what creates the house edge on all even-money bets.

This slight discrepancy in payouts guarantees that the casino retains a small percentage of all money wageredA 2% house edge means the casino expects to keep two dollars out of every one hundred dollars betOver millions of spins, this tiny percentage translates into billions of dollars in guaranteed revenue
The Flip Side of the House Edge

When discussing slot machines, the house edge is usually referred to by its inverse metric: Return to Player (RTP).


If a slot machine has an RTP of 96%, it means the house edge is exactly 4%.

GameAverage House EdgeAverage RTPEuropean Roulette2.70%97.30%American Roulette5.26%94.74%

You cannot defeat the math, but by choosing games with a low edge, you can play much longer for the same price.

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