What is house edge and how to consider it

1) Definition and communication with RTP

House edge is the average share of each bet that a casino is expected to keep for a long distance.

Formula: house edge = 1 − RTP.

Example: RTP slot 96% ⇒ edge = 4%. On the back of 1,000 cu. The average "price" of the game ≈ 40 cu.

Edge is not a guaranteed loss in one session: the result "walks" due to dispersion, but at a long distance it stretches to waiting.

2) How edge manifests itself in practice

Session price: Expected result ≈ × turnover (− edge).

Turnover = sum of all bets (not deposit or balance). Even if you spin "the same money," the turnover grows.

Variance affects the "swing," but not the average price. High volatility expands the spread of results around the same minus in% of turnover.

3) Examples of edge in popular games

Roulette:

European (1 zero): edge ≈ 2. 70% on almost all standard rates.
American (2 zeros): edge ≈ 5. 26% - almost twice as expensive.
Exotic bets with the "top line" in the American - even worse.
Blackjack: With a basic edge strategy, a casino can drop below 1% (depends on table rules). Player errors dramatically increase edge.
Baccarat: A bet on a banker usually has an edge around 1-1. 2%, per player - slightly higher; for a draw - significantly worse.
Bones (craps): pass-line and don't-pass with the correct odds - the cheapest bets; prop rates are expensive.
Slots: more often 3-6%, but it is lower/higher; the same slot can have multiple RTP configurations (and therefore edge).
Video Poker/Poker vs Casino: With the ideal strategy on the "right" pay tables, the edge can be <1% or even the player gets an edge, but this is rare and requires accurate play.

4) Betting margin = house edge counterpart

In sports betting, the advantage lies in the margin of the line. The sum of the odds of market outcomes> 100% - the difference is the bookmaker's "edge."

The lower the margin, the "cheaper" the market.

A positive expectation is possible only if your probability estimate is better than the line (value-bet), and after taking into account the commission/taxes.

5) How edge meets volatility

Edge sets the average minus in% of turnover.

Volatility determines the trajectory: the depth of drawdowns, the frequency of winnings, the length of "empty" series.

If volatility is high, reduce the rate as% of bankroll (0. 25–1%); at low it can be 1-2%. This reduces the risk of "breaking" before the average.

6) Bonuses, vager and hidden price edge

Wagering = high turnover, hence tax from edge.

The formula for the "cost" of the game: Cost ≈ Bonus × Wager × edge (allowed games).

Net benefit ≈ − Cost bonus (excluding rate limits, exclusions and bankruptcy risk until the end of the vager).

Look for a low edge in wagering games, a moderate vager, adequate restrictions.

7) How to consider house edge before the game - practice rules

1. Game Choice: Prioritize low edge/high RTP. European roulette is better than American roulette; "correct" rates in the bones are better than prop rates; in baccarat - a banker is preferable to a draw.

2. Rate as% of bankroll:

Low edge and low volatility: 1-2%.
Average volatility: 0. 5–1. 5%.
High volatility: 0. 25–1%.
3. Session length: The longer you play, the closer the actual total is to × (− edge). If the goal is entertainment under control, limit time and turnover.
4. Stop loss/take profit: fix thresholds (for example, − 20% and + 30% of the session budget) to keep risks of distribution tails.
5. Check the actual RTP. The same slot can be 96 %/94 %/92%: these are different "prices" of the game.
6. Avoid expensive side bets. Side-beta in blackjack/baccarat and exotic in roulette almost always with a raised edge.
7. Feature Buy in slots: sometimes changes the RTP of the episode, but almost always sharply increases the variance - reduce the size of the bet.

8) Quick calculations "in the head"

Translating RTP to edge: edge = 1 − RTP (in fractions).

Expected outcome of the session: Total ≈ × turnover (− edge).

Bonus price: Cost ≈ Bonus × Wager × edge (games).

Turnover: bet × number of rounds (or sum of all bets).

Mini-example:

96% slot (edge 4%). 800 spin 0. 25 cu ⇒ Turnover 200 cu
Expected "price" of the session: 200 × 4% = 8 cu. The fact will "float," but the average is the cost of entertainment.

9) Frequent myths

"Martiingale beats edge. "No, it isn't. Table limits, ultimate bankroll and negative EV make progressions unprofitable at a distance.

"The slot should give up after drawdown. "RNG without memory; edge is not "offset" by the past.

"High volatility gives more money. "It gives a wider spread, not a better average.

10) Special cases: when edge can be reduced

Blackjack on basic strategy and tables with favorable rules: edge is minimal.

Video poker on correct pay tables + ideal strategy.

Stocks/cashback/tournaments can partially offset edge - count the real benefit.

Player-versus-player poker: You pay a rake, and "edge" is born out of superiority over opponents, not casino rules.

11) Checklist before start

Do I know the actual RTP/edge of this particular game/table?

My goal: a long playtime or a hunt for a major hit?

Adjusted the rate to volatility and bankroll?

Set limits: time, stop loss, teik profit?

For bonuses - did × Wager × edge count the Bonus and appreciate the chance to "live" to the end?

Avoiding expensive side-beta and higher edge versions of the game?

House edge is the price of your entertainment, expressed as a percentage of turnover. He does not say what will happen in the next back, but describes exactly what the result is striving for at a distance. Knowing your edge, choosing "cheap" games and the right bets, reducing the size of the bet in high volatility and soberly counting bonuses, you turn excitement into controlled activity, where you set the budget, duration and acceptable risk.