House Edge of Online Casinos – Things You Must Know to Win


Posted: November 4, 2021

Updated: November 4, 2021

  • The misunderstood definition of casinos house edge
  • Factors affecting the percentage of house edge
  • The relationship between house edge and return to player ratio
  • Gambling games and their relative percentages

House edge of online casinos is one of the most misunderstood terminologies in the gambling world. It is necessary for all players to understand what it really means as it will change the way to approach different games. The house edge percentage is not a fixed value as it varies for different games. Games that require a high level of skill have a relatively low house edge. On the other hand, games that are purely based on the luck factor have a relatively high house edge. Those percentages directly affect the return value of the winnings. Therefore, if you do not take the time to understand the house edge and how it is calculated, you will certainly suffer losses that could have been avoided.

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Definition of House Edge

Even if you are a beginner at gambling, you have already heard what people call the house edge. Initially, people believe it is the advantage a casino holds over the players in a specific game. However, this does not completely describe what it actually means. House edge of online casinos is essentially the percentage that a casino deducts from the total bets a player makes over time. In simpler terms, it is a guaranteed amount that the casino wins based on a percentage of the player’s wagers. This percentage depends on several factors including the game and the total deposits a player makes.

Therefore, it is not a fixed amount that you have to pay for every bet. Over the years, some of the smartest gamblers in the world have managed to develop strategies to reduce the house edge. Those strategies are based on established mathematical formulas that predict the probability of events. If you are looking to become a professional gambler in the future, then it is a must to have an in-depth understanding of those strategies. However, before jumping into that, let us first understand how the house edge is calculated.

How is the House Edge Calculated?

Online casinos have specific criteria on how to calculate their house edge. Several factors go into calculating the percentage that gives the casino its edge. For instance, the casino tracks the number of players’ wagers, the amount or value of those bets, the number of times a player won, and a few other factors. This data is tracked for many players across different tables and games. After that, the casino collects this data, analyzes it, and comes up with a mathematical formula that yields a percentage of the house edge.

House Edge of Online Casinos
Picture Source: Pixabay

This percentage is then applied to every bet that a player makes during a game. For instance, if you make 100 dollars bet for a game with a 0.5% house edge percentage, then the casino guarantees to take 50 cents of regardless of the result. Therefore, it is important to understand the rules before playing to maximize your winnings. House edge of online casinos may differ from one site to another, but there is usually a range that all fair casinos operate in.

Return to Player Ratio and House Edge of Online Casinos

Another thing to consider and understand is the return to player ratio (RTP). The house edge of online casinos and return to player ratio are closely related. The relationship between the two is an inverse one. This means that as players get higher rates of return, the house edge of online casinos gets lower. This depends on the type of game a player chooses to go for. For instance, games that depend on pure luck have a low RTP ratio with a relatively high house edge. This includes games such as slots, roulette, or a few more. On the other hand, games that require significant skills have a high RTB and low house edge. These games include poker, blackjack, and any other game that requires a player to accurately calculate for the win.

House Edge of Online Casinos
Picture Source: Pixabay

An indication for a reliable casino is that it informs its players with the percentages of the RTP and house edge for the games. If you decide to play on a new site, make sure you search and ask for this information before making any bets. It is best to avoid sites that are not transparent with their numbers. Knowing and understanding those numbers will significantly affect how you approach the game to maximize your winning chances. Therefore, always do your research before spending your money without knowing exactly where it goes.

House Edge of Online Casinos for Different Gambling Games

As you already understand, the house edge of online casinos is calculated based on several factors depending on the game. Online casino sites in the United States have varying percentages as each game has a different. However, there is usually a fair range or average that the majority of casinos operate in. If you are looking for a game with a relatively low house edge to maximize your winnings, then you have to go for poker or blackjack at 22BET Casino. For instance, the house edge for video poker is approximately 0.46%, while the house edge for blackjack is 0.5%. However, those games require high skills of calculating to ensure winning, so make sure to master the game before betting on real money.

The other category includes gambling games in which players depend on luck to win. Since skills are required to win, the house edge is relatively higher for those games. For instance, depending on the slot machine, the house edge may vary from 5% to 15%. Also, Keno has a house edge percentage of a whopping 20% to 40%. To give you a better understanding of the house edge for different games, the table below features some of the popular games along with their approximate percentages.

Caribbean Stud Poker 5.22%
European Roulette 2.66%
American Roulette 5.26%
Craps 11%
Baccarat 10%

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