Understanding House Edge: From Roulette Wheels to Video Poker
House edge is the built-in math that gives the casino a small, steady advantage over time. It is not a trick. It is how the games work. If you know the edge, you can pick better games, plan your bankroll, and set clear limits. This guide shows house edge in simple steps. We look at roulette, video poker, blackjack, baccarat, craps, and more. We also explain RTP, variance, and common rules that change the edge.
Key takeaways
- House edge is the average cost of play over the long run.
- Expected loss = house edge × total wagered. Example: 2% edge × $1,000 bet = $20 average loss.
- RTP is 100% − house edge. If RTP is 99.5%, house edge is 0.5%.
- Rules and paytables matter a lot. A small rule change can double the edge.
- Choose single-zero roulette, fair blackjack rules (3:2), and strong video poker paytables.
- Variance makes results swing. Bankroll planning helps you handle swings.
- Play for fun. No betting system removes the house edge.
What is house edge?
House edge is the percent of each bet the casino expects to keep in the long run. Think of it like a small “fee” built into the game. It is not visible in one spin or hand. It shows up over many plays.
Formula: Expected loss = house edge × total wagered.
Example: If a game has a 2% house edge and you make $1,000 in total bets, your average loss is 0.02 × $1,000 = $20. You might win or lose more in a short session. But over a very long time, the math pulls results toward that average. This is due to the “law of large numbers.”
House edge changes with rules and paytables. Two games that look the same can have very different edges. Always check the rules and paytables before you bet.
House edge vs RTP vs hold (and “theo”)
House edge: The casino’s built-in advantage. If the edge is 5%, the casino expects to keep $5 for each $100 bet over time.
RTP (Return to Player): The share that goes back to players over time. RTP = 100% − house edge. If RTP is 97%, the house edge is 3%. Many regulators use RTP in rules for online games. See the UK Gambling Commission’s technical standards for RTP rules and testing: UKGC Remote Technical Standards.
Hold: How much a casino actually keeps from players on the floor over a period. It can look different from the math edge because of luck, game mix, and player behavior. Public reports show hold and win data. For examples, see Nevada Gaming Control Board reports and New Jersey DGE stats.
Theo: Short for “theoretical loss.” Casinos use it to estimate comp value based on the game’s edge, speed, and your average bet.
Roulette: how wheel type changes the edge
Roulette is simple, but wheel type matters a lot. The main types are:
- American (double-zero) roulette: Two zeros (0 and 00). The house edge on most bets is about 5.26%. Source and rules detail: Wizard of Odds: Roulette.
- European (single-zero) roulette: One zero (0). The house edge on most bets is about 2.70%.
- French rules on even-money bets: Some single-zero tables use special rules: La Partage: If the ball lands on zero, you lose only half on even-money bets. This cuts the edge on those bets to about 1.35%. En Prison: If zero hits, your even-money bet is “in prison” for the next spin. This also reduces the effective edge to about 1.35% on those bets.
- La Partage: If the ball lands on zero, you lose only half on even-money bets. This cuts the edge on those bets to about 1.35%.
- En Prison: If zero hits, your even-money bet is “in prison” for the next spin. This also reduces the effective edge to about 1.35% on those bets.
- La Partage: If the ball lands on zero, you lose only half on even-money bets. This cuts the edge on those bets to about 1.35%.
- En Prison: If zero hits, your even-money bet is “in prison” for the next spin. This also reduces the effective edge to about 1.35% on those bets.
Tip: Pick single-zero if you can. Even better, pick single-zero with La Partage or En Prison for even-money bets. A switch from double-zero to single-zero almost halves the edge.
For deeper math and bet lists, see Wizard of Odds and background research at UNLV Center for Gaming Research.
Video poker: paytables, strategy, and “full pay”
Video poker is skill-based. Your result depends on the paytable and your choices. With the right paytable and perfect play, the house edge can be under 1% on some games.
Paytable basics: The paytable shows what each hand pays. A small change can shift the edge a lot. For Jacks or Better, compare:
- 9/6 Jacks or Better: Full house pays 9 for 1; flush pays 6 for 1. With perfect play, payback is about 99.54% (house edge ~0.46%).
- 8/5 Jacks or Better: Full house pays 8; flush pays 5. With perfect play, payback drops to about 97.3% (house edge ~2.7%).
Other games vary too. Some rare “full-pay” Deuces Wild versions can reach 100%+ with expert play, but they are hard to find and often not offered now. Most public machines have a house edge. For detailed paytables and strategy charts, see Wizard of Odds: Video Poker.
Strategy matters: One wrong hold can turn a great game into a poor one. Use trainers and charts to learn. Exact strategy depends on the paytable. If you cannot play near perfect, assume the house edge will be higher than the “best case” number.
Snapshot: house edge across popular games
- Blackjack (good rules, basic strategy): About 0.5% or less. If blackjack pays 6:5 instead of 3:2, the edge can jump to ~1.9% or more. Strategy and rule notes: Wizard of Odds: Blackjack.
- Baccarat: Banker bet ~1.06% edge; Player bet ~1.24%; Tie often 14%+ edge. See math and rules: Wizard of Odds: Baccarat.
- Craps: Pass Line ~1.41%; Don’t Pass ~1.36%. Taking odds has no house edge, but you need a base bet first. Prop bets can be very high edge. Details: Wizard of Odds: Craps.
- Roulette: American ~5.26%; European ~2.70%; French even-money with La Partage ~1.35% (on those bets).
- Slots: Often 4%–15% edge, but it varies a lot by title and region. See public hold data in Nevada reports and New Jersey reports.
- Keno: Often 20%–35% edge. It is a very steep edge compared to table games.
- Sic Bo: Bets range from ~2.8% to 30%+ edge depending on the bet type.
Note: Exact edges depend on the exact rules, paytables, and local laws. Always check the posted rules in the place where you play.
Variance, volatility, and bankroll planning
House edge is the average. Variance is how much results jump around. A low-edge game can still have big swings. Video poker and slots can go very up or down in a short time. Roulette has smaller jumps per spin, but streaks still happen.
Simple bankroll tips:
- Pick a budget you can afford to lose. This is your entertainment cost.
- Use small bets. For many players, 1%–2% of bankroll per bet is a calm pace.
- Set time and loss limits. Take breaks. Do not chase losses.
Variance also affects how long your bankroll lasts. A game with higher variance may need a bigger bankroll for the same session length. This does not change the house edge. It only changes the path your results may take.
Can you beat the house long-term?
In general, no. The house edge is built to win over time. Short streaks of luck are normal, but they do not remove the edge.
Rare exceptions:
- Card counting in blackjack: Under the right rules, with deep decks, and with strong skill, a player can gain a small edge. Casinos watch for this and may change rules or stop play.
- Video poker with true full-pay + perfect play: Some machines can be close to 100% or a bit over, but they are rare, and perfect play is hard.
- Promotions and progressives: Sometimes a promo or a progressive jackpot can push a game over 100%. These do not last long and need careful math.
Comps (free meals, rooms) can reduce your net cost, but they do not remove the edge. Beware of myths like the gambler’s fallacy or systems that claim to “force” wins. For an honest math view, see the guides at Wizard of Odds and research hubs like UNLV Center for Gaming Research.
Choosing fair games and trustworthy casinos
Pick places and sites that show clear rules, fair tests, and fast, clean payouts. Here is a simple checklist:
- Licensing: Check that the operator holds a valid license in your region. For the UK, use the public register: UKGC license register. For New Jersey (USA), see the regulator: NJ Division of Gaming Enforcement.
- Independent testing: Look for testing labs like eCOGRA and standards like GLI-11 for gaming devices.
- RTP disclosures: Many online games list RTP. Check if the site shows this and if it matches the developer’s info. See RTP standards at the UK Gambling Commission.
- Clear terms and withdrawals: Look for clear bonus rules, KYC checks, and payout times. Avoid hidden fees.
- Transparent game rules and paytables: Read the help pages for each game. Check the version and date.
If you plan to play online roulette, first read the rules and check the wheel type. For a quick start guide and to compare variants for Italian players, you can learn how to giocare alla roulette nei casinò online and see what to expect from single-zero vs double-zero tables. Always check that the site is legal in your country and play within your limits.
Note: If you use affiliate links on review pages, add a short notice like “We may earn a commission if you sign up. This does not affect our ratings.” Clear disclosures build trust.
FAQs
Is a lower house edge always better?
As a rule, yes. A lower edge means a lower average cost to play. But also look at variance. A low-edge, high-variance game can still swing a lot.
What is the difference between RTP and house edge?
They are two sides of the same coin. RTP is the part that returns to players over time. House edge is what the casino keeps. RTP + house edge = 100%.
Why do roulette variants have different edges?
Extra zeros add more ways for the house to win. Single-zero has fewer house numbers than double-zero, so its edge is lower. French rules (La Partage/En Prison) cut the edge on even-money bets even more.
Can video poker really have under 1% house edge?
Yes, with the right paytable and perfect play. 9/6 Jacks or Better is about a 0.46% edge for the house. But if the paytable is weaker or your play is not perfect, the edge goes up.
How much can I expect to lose per hour?
Use the simple idea: Expected loss = house edge × total wagered. Example: If you bet $5 per hand, 400 hands per hour, and the edge is 1%, your total wager is $2,000. Your average loss is $20 per hour.
Are online RTPs the same as in land casinos?
They can be different. Online RTPs can be higher or lower, based on the market and the game. Check the posted RTP on the game info page and the rules in your region (for example, the UKGC standards).
Does a betting system beat the house edge?
No. Systems like Martingale can change risk and variance, but they do not change the math of the game. Over time, the house edge still applies.
Glossary (plain words)
- House Edge: The built-in advantage the casino has over time.
- RTP (Return to Player): The share that goes back to players over time (100% − house edge).
- Variance/Volatility: How much results go up and down in the short term.
- Paytable: The list of prizes for each hand or symbol.
- Push: A tie. Your bet is returned.
- Banker (baccarat): One of the two main bets in baccarat. The other is Player.
- Basic Strategy: The best plays in blackjack based on math, for each hand and dealer card.
- Hold/Theo: What casinos track as actual or expected win from play.
House edge cheat sheet
- American roulette: ~5.26%
- European roulette: ~2.70%
- French (even-money with La Partage): ~1.35% on those bets
- Blackjack (3:2, good rules, basic strategy): ~0.5% or less
- Baccarat Banker: ~1.06%; Player: ~1.24%; Tie: often 14%+
- Craps Pass Line: ~1.41%; Don’t Pass: ~1.36%
- 9/6 Jacks or Better (perfect play): ~0.46% house edge
- Slots: often ~4%–15% (varies by title/region)
- Keno: often ~20%–35%
Simple examples you can use
Roulette switch: You move from double-zero (5.26% edge) to single-zero (2.70% edge). If you plan $1,000 in total bets, expected loss goes from $52.60 down to $27.00. That is a big change for one rule.
Video poker paytable shift: 9/6 Jacks or Better (0.46% edge) to 8/5 (2.7% edge). On $2,000 total bet in a session, expected loss goes from $9.20 to $54.00—over 5× higher.
Responsible play and legal notice
Gambling is for adults only. Laws differ by country and state. Check what is legal where you live before you play. Play for fun, not income. Set limits and stick to them. If play stops being fun, stop and seek help.
- BeGambleAware (UK)
- National Council on Problem Gambling (US)
- GamCare (Support and advice)
Conclusion
House edge tells you the true cost of play. It is a simple idea that can save you money and stress. Pick games with fair rules and strong paytables. Use small bets and clear limits. Remember: Expected loss = house edge × total wagered. With this, you can plan smart sessions and avoid bad bets. If you play online, check the license, testing, RTP, and payout rules before you start.
Sources and further reading
- Wizard of Odds (game math and strategy)
- Wizard of Odds: Roulette
- Wizard of Odds: Video Poker
- Wizard of Odds: Blackjack
- Wizard of Odds: Craps
- Wizard of Odds: Baccarat
- UNLV Center for Gaming Research
- Nevada Gaming Control Board: Revenue and hold reports
- New Jersey DGE: Financial and statistical info
- UK Gambling Commission: Remote Technical Standards (RTP)
- eCOGRA: Testing and certification
- Gaming Labs International: GLI-11
Author and editorial note
Author: Editorial Team (casino game math and rules specialists)
Fact-check: House edge figures are approximate and depend on rules and paytables. We checked values against public sources listed above. Always verify local game rules.
Last updated: 22 January 2026
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