House Edge

What is House Edge?

The house edge is the mathematical advantage the operator holds on a bet, expressed as a percentage of the amount staked.

Why it matters

House edge sets the expected cost of play. It lets you compare games on the same basis before you sit down.

Example

On European roulette the house edge is 2.70 percent. Stake 100 euro across straight bets and the expected loss is 2.70 euro. On American roulette the same 100 euro staked has an expected loss of 5.26 euro.

How it works

A European roulette wheel has 37 pockets. A straight bet on one number pays 35 to 1. The true chance is one in 37, so a fair payout would be 36 to 1. The gap between the payout and the true chance is the entire edge, 2.7 percent of every euro staked.

House edge comparison table

Game / Bet TypeTypical House Edge (Approx.)Notes (Key Assumptions)
Blackjack, basic strategyabout 0.5%Depends on deck count and dealer rules
Baccarat, banker bet1.06%After the standard commission
Craps, pass line1.41%Before odds bets
European roulette2.70%Single zero wheel
French roulette, la partage1.35%Even money bets only
American roulette5.26%Zero and double zero wheel
Keno20% to 35%Varies widely by paytable

Figures are published house edge values for standard rule sets. Individual tables and paytables vary, so check the rules of the game in front of you.

Common misunderstandings

  • House edge is calculated against the original wager, not the average amount at risk, so two games with the same edge can cost very different amounts in practice. The second measure is called the element of risk. Caribbean stud poker carries a 5.22 percent house edge, close to American roulette, but an element of risk of 2.56 percent because the ante is often raised. On money actually put at risk it is much cheaper than the headline figure suggests.

Frequently asked questions

Does a low house edge mean I will win?

No. A low house edge means the expected cost per euro staked is smaller. The expected result is still a loss over a large number of bets.

Is house edge the same as RTP?

They are the same figure stated from opposite sides. A 96 percent RTP is a 4 percent house edge.

Related terms

Browse the full gambling glossary