If you are familiar with casino lingo, chances are you have once come across the phrase “the house always wins”. This simply means that gambling games in casinos are not wholly based on luck but are also designed to favour the casino establishment.
Casinos employ advantages that give them a higher chance of winning than players. This advantage offers them an edge that ensures they keep the profit rolling while minimising loss. But why exactly does the house win every time? Here is everything you need to know about casino profitability.
House edge is a term for casino advantage. It puts the probability of a gambler losing casino games in favour of the casino and its profits. Although many casinos claim that their games are based on ‘luck’, ‘chance’, or ‘probability’, every casino has some form of house edge protection over their games.
House edge, also known as house advantage, in casinos is inescapable. Regardless of the game, a gambler plays in a casino. They will always have a disadvantage, while the casino has an advantage.
People often believe games with free spins no deposit 2023 in casinos are fully based on luck. After all, there is no way to tip the balance in favour of one party when the games are mostly based on probability, right? Wrong. Casinos are businesses looking to make a profit and minimise loss in the best way possible. To do this, they have to ensure they have a higher ground on winning when it comes to playing games. Essentially, casinos ensure that they win every time, or at least as many times as they can. This is known as putting the house at an advantage by increasing the house edge.
House edge represents the average gross profit that a casino expects to make from every game. Casinos are usually filled with various games that create the facade that players rely solely on probability to help them win. However, regardless of what game you choose to play, the odds are mostly in favour of the casino winning your money.
When casinos lose money, the money comes from their own pockets. This is calculated as a loss to the establishment. However, by racking the odds to their advantage, casinos can increase their chances of winning. By doing so, gamblers don’t win the game and lose money, and the house gets to keep the money as profit.
Casinos influence games and winning by reducing the chances of payouts and the amount of potential payouts. They do this by stacking the odds against gamblers using statistical advantage.
When a casino has an advantage, it does not necessarily mean it always wins. Instead, it means that when a gambler plays over time, they make enough losses that approach the casino’s house edge. Hence, the longer you lay, the more losses you rack up and the more the casino wins.
Casinos use a time-wasting strategy to increase their chances and also make the average person stay in the establishment longer, casinos use a time-wasting strategy. This strategy includes ensuring there are no clocks in the establishment, not including windows in the game room, and serving alcoholic drinks to make gamblers relaxed. During their free time, gamblers can read about coin pushers or other interesting information.
Casinos are expected to have generally accepted house edge averages. However, this does not necessarily mean all casinos have identical edge percentages. The numbers may be roughly the same, but they can differ based on several factors.
Many games run on software, and this software usually differs from casinos. Because the running software often calculates the house, casinos with different software usually have negligible differences in edge percentages. However, these differences usually sum up to massive amounts that determine the casino’s profit.
Games come in variants, which usually determine the casino’s house advantage. An example is the difference between the house edge in American Roulette and the house edge in European Roulette.
They are the same game, save for the number of zeroes or green pockets on the roulette wheel. However, American Roulette (2 zeros on the roulette wheel) has an advantage of 5.26%, while European Roulette has an advantage of 2.7%.
House edge also varies with the type of bet that a gambler places. A good example is the casino game Baccarat. When a gambler bets on the player, the house edge is 1.24%. Conversely, when the gambler bets on the banker, the edge reduces to 1.06%. If they choose to bet on a tie, the edge shoots to 14.36%.
Some other games also depend on the amount of money a player bets. An example is the Big Six casino game. Staking $1 offers 11.11%, $2 offers 16.67%, $5 offers 22.22%, $10 offers 18.52%, and $20 offers 22.22%.
Before playing casino games, it is essential to know that no game is ever a game of chance. Regardless of the number, every game in a casino has a statistical probability against you winning money. This statistical probability is calculated using mathematical formulas to reduce the chances of a casino losing money to a gambler.
Some popular games and their house edge numbers include:
|Bonus Six||No insurance Insurance||10.42% 23.83%|
|Spanish 21||Only the dealer stands on soft 17 Dealer hits soft 17||0.40% 0.76%|
|Blackjack||Liberal Vegas rules||0.28%|
|Caribbean Stud Poker||5.22%|
|Casino War||Go to war on ties Surrender of ties Bet on ties||2.88% 3.70% 18.65%|
|Catch A Wave||0.50%|
|Crazy 4 Poker||Ante||3.42%|
|Double Down Stud||2.67%|
|Red Dogs||Six decks||2.80%|
|Three Card Poker||Pair Plus||7.28%|
|Ultimate Texas Hold ‘Em||Ante||2.19%|
The house edge of games in casinos varies widely. Because a higher house edge means the casino has a better chance of making a profit, these games offer the house better wins.
Sic bo and keno are two games that offer casinos a high edge but their edge percentages usually vary with the casino. Sic Bo house edge ranges from 2.78% to 18.98%. Keno, on the other hand, has the highest house edge ever with about 40%.
Although it is easy to reduce a casino’s advantage with a proper strategy while playing games, it is better to play it safe sometimes. Playing it safe means choosing games with very low statistical advantages that casinos have against you.
An example of a game with a very low casino edge is single-deck blackjack. This game has a low advantage of about 1.5%. This means that with proper bankroll management and basic strategy, gamblers stand a chance at winning and not losing money.
Some other examples of games with low advantages include:
1. Craps – 1.4% to 5%
2. Baccarat – 1.5%
3. Three Card Poker- 1.5% – upwards
4. Slot Machine – from 2% to 10%
5. Pai Gow Poker – 2.5%
6. Backgammon – 4.82% to 6.39%
Legally, casinos are not allowed to manipulate the results of a game. However, outside legal constraints, some casino games simply cannot be influenced because they are controlled by gaming regulators. An example of such a game is slot machines.
Slot machines are controlled by gaming regulators. These regulators use statistics and chance to calculate who wins on slot machines. When a gambler uses a slot machine, pressing the spin activates an algorithm of random number generators to determine if they lose or win, and how big the win is.
However, casinos can technically set a modern slot machine so that players only experience small wins. This is done in a way that one slot machine or more would be rigged and the RTP will be decreased.
RTP means Return To Player. They are the payout return percentages that will be returned to a player after playing a game and winning. RTP is the opposite of casino advantage.
RTP is calculated as 100% minus the house edge percentage. Mathematically, the amount necessary to get the RTP up to 100% is the house edge.
For slot machines, for example, the RTP usually varies with the house advantage. The luckiest slot machines are Ugga Bugga, Book of 99, and Ooh Aah Dracula. These slot machines have high RTPs of 99.7%, 99%, and 99% respectively.
Regardless of what games you choose to play, it is essential to always remember that casinos will always be one step ahead. They do this to make a profit and remain in business. However, even with casino advantages, gamblers still have a chance to win games and make money. With great strategy, while remembering to keep the wagers small, gamblers can beat the casino edge.