House Edge Explained: What Every Casino Game Costs You
The house edge is the percentage of every bet that a casino expects to keep over the long run. It is not a fee you see on a receipt, and it does not mean you lose that exact amount each session. It is the built-in gap between what a bet pays and what it would pay if the game were mathematically fair. Every game in an online casino has one, and once you know how to read it you can compare games, size your sessions and spot the bets that quietly drain a balance.
This page in our casino tips and strategy section covers the maths, the standard house edges for common games, and a formula for the expected cost of an hour of play.
Where the House Edge Comes From
Take European roulette. There are 37 pockets: 1 to 36 plus a single zero. A straight-up bet on one number has a 1 in 37 chance of winning, so fair odds would be 36 to 1. The casino pays 35 to 1. That one-unit shortfall is the whole edge.
Bet A$1 on the same number 37 times and assume each pocket comes up exactly once. You win once and collect A$36 (A$35 profit plus your A$1 back). You have staked A$37. The casino keeps A$1 of A$37, which is 2.70%. Every bet on a European wheel (red/black, dozens, splits) works out to the same 2.70% because the payouts are all trimmed by the same zero.
American roulette adds a double zero, so there are 38 pockets but the payouts stay the same. The edge rises to 2 / 38 = 5.26%, nearly double. Same game, same bets, twice the cost. That is why the house edge is the first thing worth checking before you sit down at any table.
House Edge by Game
The figures below are the standard published values for typical rules. Exact numbers depend on the rule set and, for pokies, on the RTP version the casino has chosen.
| Game / bet | House edge | Expected loss per A$100 wagered |
|---|---|---|
| Blackjack, good rules, correct basic strategy | about 0.5% | about A$0.50 |
| Video poker, 9/6 Jacks or Better, optimal play | 0.46% | A$0.46 |
| Baccarat, Banker bet (5% commission) | 1.06% | A$1.06 |
| Baccarat, Player bet | 1.24% | A$1.24 |
| Craps, Pass Line | 1.41% | A$1.41 |
| French roulette, even-money bet with La Partage | 1.35% | A$1.35 |
| European roulette, any bet | 2.70% | A$2.70 |
| Online pokie with 96% RTP | 4.00% | A$4.00 |
| American roulette, most bets | 5.26% | A$5.26 |
| Online pokie with 94% RTP (lower version) | 6.00% | A$6.00 |
| Baccarat, Tie bet paying 8 to 1 | 14.36% | A$14.36 |
Two things jump out. First, the gap between the cheapest and most expensive bets on the same table can be enormous: the Banker bet in baccarat costs about A$1 per A$100, the Tie bet more than A$14. Second, blackjack and video poker only reach their low edges with correct decisions. A player who guesses at blackjack can easily face an edge of 2% or more. Our blackjack basic strategy guide shows the decisions that get you to the low end.
House Edge and RTP Are Two Sides of One Number
Pokies are usually described by return to player (RTP) instead of house edge. They are the same thing seen from opposite sides: house edge = 100% minus RTP. A pokie with 96.50% RTP has a 3.50% house edge. Many popular pokies are released in several RTP versions, and the casino picks which one to run. The same title can be 96.5% at one site and 94% at another, which is a 70% higher cost for identical gameplay. The payout percentage guide explains how to find the version you are actually playing.
The Formula That Matters: Expected Loss Per Hour
The house edge applies to the total amount you wager, not to your deposit. Because winnings get re-bet, a A$100 deposit can easily turn into A$1,000 or more of total bets. The useful formula is:
Expected loss = bet size x bets per hour x house edge
Some realistic examples:
| Scenario | Total wagered per hour | House edge | Expected cost per hour |
|---|---|---|---|
| Pokies, A$1 spins, about 600 spins an hour | A$600 | 4% (96% RTP) | A$24 |
| Same pokie with Turbo, about 1,000 spins an hour | A$1,000 | 4% | A$40 |
| Live blackjack, A$10 hands, about 60 hands an hour | A$600 | 0.5% | A$3 |
| Live European roulette, A$5 bets, about 40 spins an hour | A$200 | 2.70% | A$5.40 |
| Baccarat Tie bets, A$10, about 70 hands an hour | A$700 | 14.36% | A$100.52 |
Speed is as important as the edge itself. Turning on Turbo or Quick Spin on a pokie does not change the RTP, but it raises the number of bets per hour, and so raises the hourly cost. A slow live table at a modest edge is often the cheapest entertainment in the lobby per hour.
Why You Can Still Win in the Short Term
The house edge is an average across millions of bets. In a single session, randomness (variance) dominates. A 96% RTP pokie might return 300% of your stakes in one evening and 40% the next. That swing is why people win, and also why short-term results tell you almost nothing about whether a game is “paying”. Over thousands of bets, results drift towards the edge; over a lifetime of play, the casino’s maths wins.
This also explains why no betting system can turn a negative edge into a positive one. Changing the size of your bets changes how your results are distributed (lots of small wins and a rare big loss, or the reverse), but every individual bet still carries the same negative expectation. We show this with real numbers in our pages on the Martingale system and other betting systems.
How to Use the House Edge in Practice
- Pick the cheap bet on each table. Banker over Tie in baccarat, Pass Line over proposition bets in craps, European or French wheels over American.
- Check the RTP version. Open the game’s info or paytable screen while logged in. If a pokie you like shows a noticeably lower RTP than its published maximum, play it somewhere else or pick a different game.
- Skip side bets unless you accept the cost. Blackjack side bets and baccarat side bets usually carry edges several times higher than the main game.
- Budget by the hour, not by the deposit. Use the formula above to set a session budget that matches what you are willing to pay for the entertainment. Our bankroll management guide turns this into a plan.
- Treat bonuses as edge offsets, not free money. A bonus can reduce your effective cost, but wagering requirements multiply the amount you must bet. The wagering requirements guide shows how to calculate whether an offer is worth it.
Common Misunderstandings
- “A 2.7% edge means I lose 2.7% of my deposit.” No. You lose (on average) 2.7% of everything you bet, and you usually bet your deposit many times over.
- “The edge resets after a big win.” Each spin or hand is independent. There is no memory and no balancing out. See the gambler’s fallacy.
- “Live games have a higher edge than RNG games.” Not necessarily. Live and RNG versions of the same game usually share the same rules and edge; live is simply slower.
- “High volatility pokies have a higher house edge.” Volatility describes how wins are spread out, not how much the game keeps. Two pokies can both have 96% RTP with very different volatility.
Frequently Asked Questions
It is the average percentage of each bet the casino keeps over the long run. A 2.70% edge means that for every A$100 you wager, you can expect to lose about A$2.70 on average.
Blackjack with good rules and correct basic strategy (about 0.5%) and full-pay Jacks or Better video poker with optimal play (0.46%) are the lowest common options. Baccarat Banker (1.06%) is the lowest edge that requires no strategy.
They describe the same thing from opposite sides. House edge equals 100% minus RTP, so a 96% RTP pokie has a 4% house edge.
Strategy can minimise the edge in games with decisions, such as blackjack and video poker. No betting system or staking pattern can remove it, because every bet keeps the same negative expectation regardless of size.
Multiply your bet size by the number of bets per hour and by the house edge. A$1 pokie spins at 600 spins an hour on a 96% RTP game cost about A$24 an hour on average.
Gambling is for adults 18+ and always costs money over time. If it stops being fun, call Gambling Help Online on 1800 858 858 or visit our responsible gambling page.