How to Calculate House Edge in Casino Games
The house edge, or casino edge as it can also be called, which in most cases is abbreviated as (HE), is one of the casino details which should be known be players, as it indicated the amount of money which casino gets from each game played, and that stands for casino profit. The house edge of casino games varies greatly, as it is influenced by the change of rules, software used, number of players, etc. For example, the house edge for slot machines may be up to 15%, while the house edge for keno may be up to 25%, while in blackjack – only 8%. The house edge is in some instance defined as the house advantage from optimal play on the first hand of the shoe or the container that is holding the cards, in games that have a skill element. Examples of games that have skill elements are: Spanish 21, traditional blackjack, poker. Using game strategies you may always decrease the house edge to the minimal point.
Before you start to play any of the casino games you should get to know all the strategies which can influence the house edge and make it favor you. It is very important to consider the basic strategy concept before you can start your calculation of house edges in any casino games. For example, you will be able to reduce house edge up to 0.5% in blackjack following all the game recommendations.
An Example of a House Edge Calculation
Example:Calculate the house edge of an American roulette casino game that has two zeros and thirty six numbers making an even bet on red numbers.
Solution:You must note that when players bet one dollar, then their chances of winning one dollar in an America roulette game are 18/38. This is simply because there are eighteen red numbers out of the total thirty eight in the game. On the other hand, their chances of losing the same one dollar are 20/38. This is because there are twenty numbers that are not red in the game. In that case, the expected value (EV) can be calculated as follows:
- EV= (1) (18/38) + (-1) (20/38)
- EV= 18/38-20/38
- EV= -2/38 which is the same as -1/19
- EV therefore is equal to (-1/19) multiplied by one hundred which gives us a result of -5.26%
The expected value is always presented as positive value, and therefore in this case that expected value is 5.26%.
This operation should be done by you before each game played, especially if you want to win money. This knowledge you have to use in order to create a special game strategy which will help you to reduce house edge and become a winner. As for the players, who are not interested in winning, they can just look through the table of possible game odds to know their chances to win the game.
