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The house edge

The casino house edge is not a trick and not a setting. It is the difference between the true chance and the odds paid for it, and at table games it can be worked out.

One example is enough to see the principle. A roulette wheel has thirty-seven pockets; a single number pays thirty-five to one. True chance: one in thirty-seven. It is paid as though it were one in thirty-six. The gap is the edge.

How the house edge works through the wagering requirementThe edge works per stake, not per evening€100 balance, 4 % house edge, the arithmetic expected value.1× wagering96 €5× wagering81 €10× wagering66 €20× wagering44 €35× wagering24 €That is why a high wagering factor costs money and not only time.
The house edge bites on every single stake. A wagering factor obliges you to place exactly those stakes, which is why the number before the × is not a statement about effort but about cost.

It bites per stake, not per evening

This is the point most often misunderstood. The edge applies to every single round, which is why the expected loss hangs on total turnover rather than on the balance. Stake one hundred euros ten times over and you have generated a thousand euros of turnover, and that is what the edge is calculated on.

Why a high bonus wagering requirement costs money

For exactly that reason. A wagering factor obliges you to place stakes, and every stake carries the edge. At four per cent and 3,500 euros of required turnover that comes to 140 euros the bonus has to win back before it is worth anything. The arithmetic in detail.

How it relates to the payout percentage

The two describe the same thing from opposite sides: a payout percentage of 96 % corresponds to a house edge of 4 %. On slot machines the percentage is published; at table games the edge follows from the rules. That is why a table game comes with a derivation and a slot machine with a source. RTP and volatility.

What it is not

  • Not a guarantee for the evening. It is an expected value over a great many rounds; a single session can end anywhere.
  • Not a setting the operator makes. At table games it follows from the rules, on slot machines from the variant the manufacturer supplies.
  • Not an argument against playing. It is a price. It should simply be known before it is paid.

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