What House edge is
House edge is a term used to describe the mathematical advantage that a casino or other gambling establishment has over its players. It is expressed as a percentage of the total amount wagered, and is typically between 1-2%. This means that for every $100 wagered, the casino will make an average of $1-2 in profit.
The house edge is calculated by taking the total amount of money wagered and subtracting the amount that is paid out to players as winnings. This figure is then divided by the total amount wagered, and the result is expressed as a percentage.
For example, if a casino game has a house edge of 5%, and $100 is wagered, $5 will be taken by the house as profit. Of the $100 wagered, $95 will be paid out to players as winnings.
Steps to Calculate House Edge:
- Determine the total amount of money wagered in a particular game.
- Subtract the amount that is paid out to players as winnings.
- Divide the result by the total amount wagered.
- Express the result as a percentage. This is the house edge.
For example, if a game has a house edge of 5%, and $100 is wagered, the house will take $5 as profit. Of the $100 wagered, $95 will be paid out to players as winnings.
Examples
1.In blackjack, the house edge is the mathematical advantage the casino has over the player. This is calculated by taking the total amount of money won by the casino and dividing it by the amount of money wagered by the players.
2.In roulette, the house edge is the difference between the true odds of winning a bet and the odds offered by the casino. For example, the true odds of rolling a 7 on a single die are 1 in 6, but the casino may offer 5 to 1 odds for a 7. The difference between the true odds and the odds offered by the casino is the house edge.
3.In craps, the house edge is the difference between the true odds of winning a bet and the odds offered by the casino. For example, the true odds of rolling a 7 on a single die are 1 in 6, but the casino may offer 5 to 1 odds for a 7. The difference between the true odds and the odds offered by the casino is the house edge.