House Edge in Casino Games: Everything You Need to Know

House edge is a term that is quite dominant in the gambling industry. Most gamblers use a casino game’s house edge percentage to determine whether or not that game suits them. So, what exactly is a casino game’s house edge? Read on to learn more.

What Is House Edge Percentage?

A casino is a business like any other, meaning it has to make a profit. This is where house edge in casino games comes in. House edge refers to the built-in advantage in casino games that enables a casino to profit from the initial wager gamblers place when playing these games and is usually expressed in percentage.

Some people define house edge as the profit a casino makes each time an individual loses a bet. However, this isn’t the case, as casinos still earn profit regardless of whether a gambler loses or wins a bet.

How to Calculate a Casino Game’s House Edge

Here is an example of how a casino game’s house edge percentage is calculated.

Suppose an individual plays online baccarat, and its house edge percentage is 1.06%. In that case, the casino will make a profit of 1.06% from the total amount of bets they place during the game. So, if the individual places bets totaling $100, the casino will make a profit of $1.06 whether they lose or win their bets.

Various casino games have different house edge percentages, mainly because each game is played differently.

It’s important to remember that the longer one plays a particular casino game, the greater the possibility that the total wagers they place will match up with the game’s house edge. Therefore, the individual will experience a loss whether they lose or win their bets.

House Edge Percentage Vs. Payout Percentage

A casino game’s payout percentage or return-to-player percentage (RTP) is the amount of money a casino returns to players who have won a casino game in the form of cash prizes. So, how is a casino game’s house edge and payout percentages related? For instance, if a gambler has won an online baccarat bet, the casino will subtract the house edge percentage and give the individual the remaining amount as the cash prize.

Assuming the online baccarat’s house edge percentage is 1.06%. When subtracted from 100%, the payout percentage is about 94.3%, which is given back to the player as a cash prize.

So, does a casino game’s payout percentage represent how much of an individual’s total wagering money they will receive back if they win a bet? Not really. The casino doesn’t subtract profits from an individual’s total wagering money. Instead, they deduct it from the total amount of money all the players have placed as wagers during the game.

Casino Games With the Lowest House Edge Percentage

The lower a casino game’s house edge percentage is, the higher the payout percentage. Here are several casino games with the lowest house edge percentage.

European Roulette

The European version of online roulette has a single zero on the wheel, totaling 37 numbers on the wheel. So, why does this online roulette have a low house edge percentage? It’s simple; the numbers on the wheel are less, making the house edge lower.

So, it’s advisable for gamblers, especially newbies, to go for this type of online roulette as it will help them incur less loss over time.


While online slots have a low RTP percentage, there are other reasons why they have a low house edge percentage. Typically, online slots are popular, meaning online casinos are trying to outdo one another by offering the best online slot experience possible.

Besides having a wide selection of online slots, online casinos also offer bonuses like free spins, which players can utilize to reduce the house edge effect.


Online baccarat is also one of the popular casino games with a low house edge percentage. This is mainly because of how simple this game makes it suitable for beginner gamblers.

Single-Deck Blackjack

This online blackjack variant is the simplest to play and has a low house edge percentage. This type of online blackjack has a low house edge percentage because the blackjacks are more frequent. What’s more, one is more likely to receive 10-value cards on top of double-downs.

Three-Card Poker

Besides being easy to learn, three-card poker has the lowest house edge percentage compared to other poker variations. However, this depends on how one plays.


Gamblers need to keep in mind that a casino always has the upper hand regardless of the casino games they play. However, there’s still a way individuals can reduce the house edge effect and win good money. An excellent way to do so is to focus on playing games with a low house edge and a high payout percentage.

Josh Linus
Josh Linus
Josh can talk films for hours on end, discussing the really good cinema, the really bad, and anything in between. He enjoys everything - from epic fantasies to horror, from rom-coms to crime and action thrillers, from sci-fi to musical dramas.

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