House Edge & Casino Payouts

July 23rd, 2006

When you see an online casino listing a HOUSE EDGE for a specific game (or for all table games, card games or the whole casino), have you ever wonder what it really means?
House Edge is the percentage of your initial wager on a game that the casino is likely to keep based on the mathematical probabilities associated with the casino game you’re playing.
Other definitions include “the ratio of the average loss to the initial bet”. (Wizard of Odds)
For example if you know the house edge for single deck single hand blackjack is say, 0.45 (0.45%) then you can assume that for every $10 you bet as your original wager (ie not with splits and other play options) you will lose 4.5 cents to the casino.
It’s a useful statistic to compare online casinos – and games. Have a look at this BlackJack Sites Comparison.

HOUSE EDGE is different from PAYOUT PERCENTAGE as payout percentage reflects the total percentage of winnings to total wagered amounts. (and of course the auditors are quick to point out that the percentages do not necessarily reflect the results of any individual casino game or the future payout of these games).
Here’s some examples from the latest round of online casino auditors reports (May 2006).
Spin Palace Casino
All Games: 96.42% (so only 3.58% was retained by the casino)
Slots: 95.67% – but has had months as high as 99.13% Just amazing where the casino only retained 0.87%. So in theory then if you were playing $1 slots games you could make a $100 last for 10,000 spins! Bring on those jackpots!
32Red Casino
All Games: 97.02% 
Slots: 94.90%
Ruby Fortune Casino
All Games: 96.88%
Slots: 96.20%

Entry Filed under: Gambling News

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