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Home/Glossary/House Edge
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House Edge

What is House Edge?

The mathematical advantage the casino has over players, expressed as a percentage of each bet.

Last updated:February 22, 2026

House edge is the percentage of each wager that the casino expects to keep over time. It's the flip side of Return to Player (RTP) — if a game has a 2% house edge, the RTP is 98%.

House edge varies dramatically between games. Blackjack with basic strategy has a house edge as low as 0.5%, while some slot machines can exceed 10%. Understanding house edge helps you choose games that give you the best chance of winning.

Importantly, house edge applies over thousands of bets. In the short term, anything can happen — that's variance. But the longer you play, the closer your results will converge to the mathematical expectation.

In practice

European roulette has a 2.70% house edge from the single green zero. On a $10 bet on red, expected loss per spin = $10 × 0.027 = $0.27. Play 200 spins in an hour and your mathematical expectation is −$54, though variance guarantees sessions will swing far above or below that mean.

Compare to American roulette (double-zero): house edge jumps to 5.26%, nearly doubling expected loss to $1.05 per $10 spin. Blackjack with basic strategy runs 0.5%, single-deck 3:2 even lower. Picking games by house edge is the single biggest casino EV lever — it outweighs any betting system or hot-streak strategy by an order of magnitude.

Formula

House Edge = 100% - RTP

Example

<p>European roulette has a <strong>2.70% house edge</strong> from the single green zero. On a <strong>$10 bet on red</strong>, expected loss per spin = $10 × 0.027 = <strong>$0.27</strong>. Play 200 spins in an hour and your mathematical expectation is <strong>−$54</strong>, though variance guarantees sessions will swing far above or below that mean.</p><p>Compare to American roulette (double-zero): house edge jumps to <strong>5.26%</strong>, nearly doubling expected loss to $1.05 per $10 spin. Blackjack with basic strategy runs <strong>0.5%</strong>, single-deck 3:2 even lower. Picking games by house edge is the single biggest casino EV lever — it outweighs any betting system or hot-streak strategy by an order of magnitude.</p>

Related Terms

Return to Player (RTP)

The percentage of wagered money a game returns to players over time.

Expected Value (EV)

The average amount you can expect to win or lose per bet over time.

Variance

The measure of how much results deviate from the expected outcome in the short term.

Frequently Asked Questions

What does House Edge mean in gambling?

The mathematical advantage the casino has over players, expressed as a percentage of each bet.

How do you calculate House Edge?

House Edge = 100% - RTP

What is an example of House Edge?

<p>European roulette has a <strong>2.70% house edge</strong> from the single green zero. On a <strong>$10 bet on red</strong>, expected loss per spin = $10 × 0.027 = <strong>$0.27</strong>. Play 200 spins in an hour and your mathematical expectation is <strong>−$54</strong>, though variance guarantees sessions will swing far above or below that mean.</p><p>Compare to American roulette (double-zero): house edge jumps to <strong>5.26%</strong>, nearly doubling expected loss to $1.05 per $10 spin. Blackjack with basic strategy runs <strong>0.5%</strong>, single-deck 3:2 even lower. Picking games by house edge is the single biggest casino EV lever — it outweighs any betting system or hot-streak strategy by an order of magnitude.</p>

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