The Mathematics Behind Casino House Edge

Every single game on a casino floor is meticulously designed with a built-in mathematical advantage for the operator.


This mathematical advantage is universally known as the 'house edge,' and it is the secret to their massive profits.

How the House Edge is Calculated

The concept is simple: if the true odds are 35-to-1, the casino will only pay you 35-to-1 instead of 36-to-1.


If you bet on a single number in roulette, you have a 1 in 37 chance of winning, but the payout is only 35 to 1.

This slight discrepancy in payouts guarantees that the casino retains a small percentage of all money wageredA 2% house edge means the casino expects to keep two dollars out of every one hundred dollars betOver millions of spins, this tiny percentage translates into billions of dollars in guaranteed revenue
RTP: The Player's Perspective

In the digital world, software providers use the term RTP to explain the theoretical payout of a game.


An RTP of 95% indicates that the machine is programmed to pay back $95 for every $100 wagered over its lifetime.

GameAverage House EdgeAverage RTPEuropean Roulette2.70%97.30%American Roulette5.26%94.74%

While you can absolutely win in the short term due to variance, the math is inescapable over the long run.