The house edge is something every gambler needs to take into account when playing with, and choosing, a casino. Every casino has an edge in order to make a profit. If it weighted the odds fairly, most casinos would go bust within a matter of weeks. Successful gamblers are participating in the eternal battle to overturn this house edge via special systems and taking advantage of bonuses.
The house edge is also called the expected value. It takes into account the potential amount lost compared with the bet made. It takes the average of this to determine the house average. House edges always remain the same unless the game is somehow rigged.
Expected Value Calculations
The actual house edge requires a significant amount of mathematical ability to calculate in the middle of a frenzied game of roulette. Roulette is the easiest game to use as an example of house edge calculations. In the American version of roulette, the chance of winning if betting on a single number is 38-to-1. If they hit the number, they would increase their wager by 35 times. There is also a chance that they will lose their wager, though. These figures are what make the house edge.
The calculation itself is actually -1 multiplied by 37 over 38 plus 35 multiplied by one over 38. It is more complicated than it looks, but after carrying out these functions, the player is left with a decimal and a minus sign. Ignore the minus sign and simply multiply the figure by a hundred to get the house edge. In this example, the house edge would equal 5.26 percent.
Green Squares and Bets
The greens squares on the roulette wheel and table serve as the house edge. It is why the double “00” appears on many wheels since it further boosts the casino’s chance of winning. In terms of these green squares, if a single or double zero appears, every outside bet loses. On the other hand, inside bets also put the casino at an advantage because all payouts have odds of 35-to-1.
The easiest way to look at this is by placing one betting unit on every inside number. This assures a win. Clever casinos have already countered this smart trick, though, because if the person always wins they will spend 38 betting units to win 36 each time. Over time, they will steadily lose money and the casino will gain money.
House Edge and Hold
The hold is something entirely different and is often confused with the house edge. The hold is actually the average amount of money lost by a player before he leaves the table. This is expressed as a percentage and is used to predict exactly how much a casino has made from each player. The Casino Control Commission for casinos in Atlantic City releases monthly reports on this.
For players, this is not relevant to them unless they want to evaluate their own performances. If they are implementing a new system or a new tactic they can see if it is working or not. Professional players need calculations like these as it is almost impossible to remember how much they have won and lost after so many wagers.
Relation to Players
The house edge uses the same principle for every type of game. Roulette is just one of the most prominent examples. Online casinos can switch the house edge up or down in order to entice players or maximise their profits. The most successful of these casinos strike the right balance between the house edge and profitability. These days, nearly every land-based casino must choose 34 or 35-to-1 as their roulette odds, as dictated by gambling regulation commissions.