Calculating the House Edge

Many players are interested in what the house edge is and think that this is great information, only they don't truly understand how to use the edge to their benefit. The house edge is very similar to a payback rate. Where as a payback rate tells you how much money you will make back out of 100%, however the house edge is basically the odds of what they will take out of 100%. Although the two ways may seem different, in the end they are both telling you the same thing. Say for example that a game says that it has a 97.4% payback rate, this means that the house has a 2.6% edge over the players.

Understanding Casino Game House Edge

It is pretty simple to understand what a house edge or payback percentage is. When it is worded as the house edge, this is what percentage of your wagers that the house will take. When it is worded as payback percentage, it is talking about what percentage of your wagers will be paid back to you. If you still don't understand, we will break it down for you step by step below. For this example, this is a slot machine game with a payback rate of 98%.

1. Everything starts with 100%.

2. The payback rate is 98%.

3. 98/100 you will get back.

4. 2% is the house edge.

Now, as you can see, as mentioned earlier, the payback rate and the house edge are basically the same thing with the wording switched around. Now you will see a slot machine game in which the house holds a 2% edge. Compare the results to the above steps.

1. Everything starts at 100%.

2. The house edge is 2%.

3. 2/100 this is what the house will take, the rest you will get back.

4. 98% is the payback percentage.

Now that you understand what one is, you need to know where to find out about them. Many casinos offer some payback rates, but generally do not outwardly tell their players about the percentage of house edge that they hold over them. Often times, if you want to go into the game with your head on straight, you need to do your homework before putting on the gear. It is not hard to do your homework on which casino games to play. Which slots with best payback percentages and which table games have the highest house edge. You can find all of this information at the tips of your fingertips on online casino information websites. You might also be interested in one or both of our articles. The first lists the types of casino bets to avoid based on the house edge, while the other lists the best casino bets based on house edge.

Many times players have the ability to change the house edge by their skill of play. If they are not good players, or often times players under the influence tend to make many common sense mistakes like hitting in Blackjack when they should have stood. When you make these common mistakes while playing casino games, you greatly increase the casino edge and that is just like handing them over your hard earned cash. So when doing your homework about which games have the best odds and lowest house edge, once you have picked a game, learn everything there is to learn about it before you put your dough on the line.

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