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How is House Advantage Calculated?

If you are a gambler, you have probably heard of the term “house advantage” or “house edge” before. This term is used to describe the advantage a casino has over a player in a gambling game. The mathematical probability of winning is different in each casino game because of the gameplay and rules.

In this guide, we will unpack how house advantage is calculated to discover how a casino always makes money. The scales in all the games offered at casinos are uneven. It is in the interest of the casino to ensure game rules favor the house to make a profit.

House advantage is calculated in percentage. The smaller the percentage, the more likely it is for a player to win. However, the inverse is also true! The higher the percentage, the lower your odds of winning.

How House Advantage is Calculated

How House Edge Works

House edge is achieved based on the rules of the game and how the odds of winning are set up as a result.

For example, flipping a coin that has two sides will have different odds than a pair of dice. This means that there is a 50% chance you can guess the right answer. Those odds are too expensive for the casino. Hence, you will probably never be able to bet on coin flips at casinos.

Casinos set up game rules in a way to ensure that they always come ahead. A good example of this advantage is in blackjack. There is a rule in the table game that dictates that if both the dealer and the player go bust (hand totals that have gone over 21), the player loses the round.

Additionally, the casino pays out below what ought to be the true odds of the game. Another good example can be seen in roulette. A roulette wheel has a total of 37 pockets that the ball can land in (1 to 36 including 0).

By that metric, 36 bets will lose and only one will win. Therefore, the true odds in the game is supposed to be 36 to 1, if you place a single bet. However, casinos currently payout 35 to 1 on single bets.

How to Beat the House Edge

There is no outright way of beating the house advantage that guarantees you won’t lose. The casino is created in a way that even if you win, the casino does not lose. What that means is that there are so many games available on the casino floor that even if one person wins, another person might be losing elsewhere.

They are also open 24 hours a day. It is in the interest of the casino to keep you at the casino for as long as you can afford to stay there. This is why the casino does not allow daylight to pierce through the establishment on account that there are no windows. Ultimately, the longer you continue to play, the less likely you will win.

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