What is House Edge in iGaming

You’ve probably heard the term “house edge,” as it is quite closely connected to payouts. But what does it mean, and why is it important for both operators and players?

Let’s find out what house edge is, why it matters when you aim for bigger payouts, and what low casino revenue games to play at Megapari.

What is House Edge?

Basically, the house edge is the main tool that helps the best online casinos earn money to cover their costs. It’s useful to check the gambling platform profit of a game before playing because it gives you an idea of your chances of winning and how much the game pays out on average.

The operator’s margin is calculated as the average loss compared to the initial bet. In some games, the starting bet isn’t the final bet. Let’s say, in blackjack, craps, or poker, players can increase their bets when the odds are favorable. This extra money isn’t included when calculating the casino commission, which some players don’t find favorable. In games like Pai Gow Poker or Three Card Poker, where two initial bets are required, the casino margin is based on only one of them.

How to calculate it

The gambling operator margin is already calculated and built into the game, so players don’t need to figure out complex math to understand their potential winnings.

But the house edge exists because online casinos don’t pay out true odds. In some cases, it’s easy to see why. For example, when rolling a single die, the odds of getting a five are 1 in 6. For rolling two fives with a pair of dice, the odds are 1 in 36 (1/6 x 1/6). Still, if you bet on rolling a 10, the gambling website might only pay 25 to 1, creating a casino margin of 16.67%.

Online Casino Games with Low Casino Profit

Blackjack

Blackjack online typically has a low casino profit rate, but it can vary based on factors like rules, the number of decks, or how the game is played. For instance, in a double-deck blackjack game, the casino profit might be 0.30% when the dealer stands on all 17s and players can double on any two cards, but it could rise to 0.80% if the dealer hits on soft 17 and players are restricted to doubling only on 9, 10, or 11.

Craps

In craps online, the commission varies widely depending on the type of bet. Some bets, like “any seven” or “hardways,” have high house edges of 16.00% and 10.00%, respectively.

On the other hand, safer bets like pass line with full odds (e.g., 3x odds) offer a return-to-player (RTP) rate of 99.50%. Betting on the five or nine has an RTP of 97.20%.

Roulette

The double-zero “American” casino roulette wheel has a house edge of 5.50%, while the single-zero “European” wheel has a lower edge of 2.80%. The extra zero on the American wheel when you play roulette reduces winning odds, such as 1 in 38 for a single number versus 1 in 37 on the European wheel, making the European wheel a more lucrative option for players due to the low roulette house edge.