Slot machines, for example, rarely offer good RTPs – the house edge in them usually ranges from 2% to 10%, depending on the particular game. Once again, the return to player or expected return, as it is also referred to, is theoretical in nature and applies for a nearly unlimited number of gaming rounds. Players who bet $100 on such a game are expected to end their gaming session with $95. Games with a house edge of 5%, for instance, have an RTP of 95%.

In other words, the RTP that is often displayed for some casino games is, in fact, the exact opposite of the house edge. The RTP or return to player is another term that describes the same idea but rather than focusing on the player’s losses, it is used to express the percentage of the bet that players are likely to keep over time. After playing thousands of rounds, however, they will most probably lose a percentage of their total bet that is very close to the theoretical house edge. This means that casino players may end up with huge profits after playing 10 rounds of roulette or craps.

It should be noted that it applies only when a large number of gaming rounds are considered – hundreds of thousands and even millions. However, the house edge is a theoretical concept based on probability theory and the so-called Law of Large Numbers, which produces stable long-term results for the averages of random events such as gambling games. The house edge is not a result of luck and instead, games are designed to provide casinos with a guaranteed income – the advantage is simply the difference between the true odds and the odds casinos are willing to pay. If a game comes with a casino advantage of 5%, it suggests that the casino keeps 5% of players’ bets on average – or $5 of your $100 bet, for instance. There are various definitions of house advantage but simply put, it is the casino profit, which is expressed as a percentage of players’ total wager. This advantage guarantees returns for the casino over time and, therefore, an assured loss for the players. The term is used to describe how lucrative or unprofitable a game is, whether that is craps, blackjack, poker, roulette, baccarat, or a slot game. The house edge is the mathematical advantage commercial gambling venues have over their patrons as they play over time.

House edge on casino games