The house edge can influence your choice of game. Moreover, it’s important to understand it to successfully apply a strategy.
Definition
You will often hear the house edge in a low deposit online casino. But what does it actually mean?
The house edge refers to the advantage the online casino has in every game. It is a statistical calculation expressed as a percentage. The percentage is based on the difference between the probability that something happens (you win) and the probability that it does not happen (the casino wins). In other words: how much of an advantage the casino has statistically in each game. You can also see the house edge as the average percentage profit an online casino must make over a longer period of time; or how much you will on average lose when playing with large sums of money over a longer period and without strategy.
An Example
Let’s take a look at the simplest bets in online Roulette: red or black. It is often thought that you have a 50% chance to win. However, this is not the case. The zero in European Roulette changes the odds and means there are three possible outcomes: red, black or neither. There are 37 numbers (1-36 and 0). However, you will only win on 18 of the 37 numbers when you have bet on red or black. Your chances are therefore:
18 : 37 = 48.65%
The house also wins when the ball lands on 0, so on a total of 19 numbers. The casino’s chances of winning are therefore:
19 : 37 = 51.35%.
The house edge is the difference between these two percentages:
51.35 – 48.65 = 2.7%
The more permutations the game has, the more difficult these calculations become.
How To Use It
You can easily find the calculations for the most popular games. With these percentages you can see well which games are suitable for beginners: the edge is small so you pay a small price for a lot of fun. When the house edge is slightly bigger, you know how much you’re putting at stake when you take a little more risk. Moreover, it helps you think more rationally and avoid myths. What’s even more important is that the house edge shows you how a game works. By understanding when you have the best chances, you can start analyzing which outcomes are most favorable and how you can turn the edge in your favor.
Statistical Strategies
Blackjack is the perfect example of when the house edge can help your strategy. In Blackjack, the house edge lies in the chance that the player will go over 21, since the house automatically wins then. You can therefore reduce the edge by calculating when you should stop or when you should continue based on the probability of going over 21 vs. losing value.
Casino Games with the Biggest House Edge
- Keno: The house edge in Keno can go up to 35%, depending on the version played. This makes it the casino game with the highest house edge.
- Slot Machines: Slot machines have a house edge ranging from 5% to 15%. The more elaborate slots with huge progressives tend to have about a 10% house edge.
- Roulette (double zero): The double zero roulette wheel has a house edge of 5.26%. This is higher than the European single zero wheel which has a house edge of only 2.7%.
- Caribbean Stud Poker: Caribbean Stud has a casino advantage of around 5%, which is quite high for a table game. However, the progressive jackpot bet in this game gives the house a massive edge of over 15%.
- Three Card Poker: Three Card Poker gives the house an edge of around 3% on the ante bet. Side bets can increase this further up to around 6% for the Pair Plus wager.
So games where either the house edge is inherently high through the game rules or side bets with poor odds contribute most to the casino’s advantage. Wise gamblers tend to avoid game variants with double zeroes or high side bet house edges.