What is a House Edge?

house edgeIt is essential for players to understand what this house edge means. Although it is not the only element to consider when selecting a casino game to play, it is a crucial factor to keep in mind.

The house edge, usually quoted as a percentage value, is the average loss as a fraction of the initial bet placed at a particular game. It is a measure of the casino’s advantage over the player, and the mathematical inverse of the game’s RTP, which stands for ‘Return To Player’. The game’s RTP roughly describes the average return the player can expect as a fraction of the initial amount wagered. The house edge and the RTP should sum up to a 100%, representing the player’s total initial bet.

To illustrate these concepts more concretely using an example:

A game with a 3% house edge would have a 100% - 3% = 97% RTP. This means that a player placing 100 bets each worth €1, may expect to win back €97 and the casino to earn €3 by the end of the game.

How Does the House Edge Affect the Player?

The lower the house edge, the larger the RTP, which means the player should expect a greater payout. However, in some games such as blackjack or Caribbean stud poker, the starting bet will be adjusted during the course of the game, which is not taken into consideration in the house edge statistic but increases the measure of risk. Moreover, house edges are calculated assuming players use optimal or near-optimal strategy in each game, making the house edges for real players actually higher than those advertised.

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Nonetheless, the stated house edges of games can still provide a reasonably good idea as to which are the lowest casino edge games from the selection available.

Why Play Casino Games with the Lowest House Edge?

Choosing the lowest house advantage casino game to play would give you the best chances of holding on to your bankroll, making it more likely you will walk away with some of your winnings.

Since house edges differ significantly between the different games, it is critical to know how the house edge of each game compares with the rest before diving in. Often, the house edge is closely related to the payout, with higher payout games or particular bets which offer high returns, usually having a higher house edge. Conversely, lower payout wagers and games are usually associated with a lower house edge. Make sure to keep the house edge in mind next time you are trying to get the casino online best payout since it will inevitably have an impact on your overall profits.

Can the House Edge Be Removed?

The casino’s advantage is inevitably present in any casino game. It is built into the rules and the tool by which establishments turn a profit off their patrons. Using a strategy can improve the player’s chances of managing their bankroll well to make the most of any opportunities which may arise when the odds are in their favour, but it could never totally overcome the house edge.

Some sites may claim an alluring house edge of 0%, but players should approach such claims logically and rationally. Would a casino offer a game which it cannot make earnings from? It is indeed true that the house edge may be as low as 1.5% for certain games, such as blackjack, when perfect strategy is applied, but it can never really truly be zero.

How To Find the House Edge

All safe and verified casino games are required to include the RTP in their technical information sheet. The house edge would be – as explained above – 100 minus the RTP, making it easy to calculate.

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There are also several lists readily available online showing the house edge of each casino game, but values may vary slightly between sources. Each statistic depends on which variation of the game with its specific set of rules it was based on, as well as the level of skill the player is assumed to have. For this reason, you may find several different values quoted as the house edge for the same game.

The house edges quoted in this article are based on the most common variations of each casino game with their standard rules.

Is the House Edge a Reliable Statistic?

It is critical to keep in mind that the house edge can only provide a rough estimate of how much the player may expect to lose to the game since most players will not know what their average wager will be as this is likely to change throughout the game. This is also why a textbook house edge statistic may be difficult to apply to a real-life situation. The house edge is a somewhat biased measure of risk and arguably not the most meaningful way of ranking the profitability of games.

To illustrate this point using an example, consider Caribbean stud poker and double zero American roulette, which both have a house edge of around 5%.  However, Caribbean stud poker has a much smaller associated risk, and players, on average, lose a smaller fraction of the initial bet to the house when compared to American roulette. The unaware player looking only at the house edges of both games may think they are equally risky bets to place, where, in fact, Caribbean stud poker has a lower ratio of money lost to money wagered, making it a safer gamble than double zero roulette.

This being said, it is still always advisable to seek out the casino games with lowest house edge if presented with the opportunity.

The Lowest House Edge Casino Games

Below, we’ve ranked the top lowest house edge games.

  1. Video Poker

    This modern take on poker is played on a video game console similar to an old-fashioned arcade game, where the player is dealt a poker hand digitally. The house edge depends on the software used by the particular machine as well as the player’s skill and may range between 0.5% and 5%.

  2. Carribean Stud Poker

    In this variation of poker, the player’s goal is to beat the dealer rather than the other players. Payouts are based on the final poker value of the hand, making them very variable. In most instances, a progressive side bet is also allowed, giving players a chance to win big if they hit a royal flush. The house edge usually starts at around 5%.

  3. Roulette

    In American roulette, which contains both a 0 and a 00 slot, the house edge is around 5%, whereas the European version of the roulette wheel only has a single 0 slot, and thus a lower house edge of 2.5%.

  4. Pai Gow Poker

    Pai Gow poker allows players to form two winning hands out of the seven cards initially dealt, with the aim of beating the dealer with both a five-card and two-card hand. The house edge for this game usually stars at around 2.5%.

  5. Craps

    In craps, the casino advantage varies drastically depending on the outcomes of each roll and which bets are placed. Some bets are associated with a higher house edge than others, and the RTP is highly dependant on the strategy in place. Bets such as ‘don’t pass/don’t come’ have a house edge of 1.4%, whereas the edge for ‘any seven’ is a much higher 16.67%.

  6. Baccarat

    Baccarat is another basic strategy game which follows rigid but straightforward rules on card distribution. Players may bet the banker, player or tie outcomes. In single-deck baccarat, the banker bet has the lowest house edge at 1.1%, the player bet has 1.29% and the tie bet has a 15.75% house edge.

  7. Three Card Poker

    As the name might suggest, players in this poker variation are dealt three cards and aim to beat the dealer’s hand. The payouts vary according to the dealer’s cards, with the house edge starting at 1.5%.

  8. Blackjack

    Blackjack is renowned for being the casino tabletop card game with the lowest house edge, having the lowest casino advantage between 1.5% and 2%. In a few varieties, you can even completely remove the house edge if you play a 100% perfect game.

    The aim when playing is to obtain a hand with a total value of 21, without exceeding it. Blackjack games using a single deck provide players with the best chances, which can further be improved by employing basic blackjack strategy and responsible bankroll management.

  9. Slots

    Slot machines generally give smaller payouts than other games but are associated with greater RTP, having the lowest house edges of any game between 1% and 15%, depending on the nature of the slots. However, most slot machines will have an RTP between 95-97%.

    Due to ongoing competition between software suppliers to create the best slot games, many now offer attractive extra features such as free spins, bonus rounds and jackpots. Seeking out these offers gives players an even larger advantage through the possibility of triggering a lucrative bonus.

How to Find the Lowest House Edge Casinos

The house edge is normally on a game-to-game basis, and you will rarely find the overall casino house edge advertised on their website. However, that doesn’t mean there aren’t factors that can impact your overall earnings. It’s all in the details, so to find the casino with the lowest house edge, the following factors are important to check:

  • Bonuses – Bonuses with fair conditions will greatly increase your budget and chances to win. Be on the lookout for free spins no wager, as this is the bonus type most likely to return some winnings.
  • Deposit and Withdrawal Conditions – Some payment methods might be subjected to fees, which can impact your overall return on investment. In addition, some casinos have deposit and withdrawal limits that might not be suitable for your playstyle.
  • VIP programs – High-rollers who spend a lot of money gambling on a regular basis can see a big difference from a good VIP program. Watch out for cashback bonuses, loyalty bonuses and personal account managers. Many VIP programs are known to offer the best high roller bonus that can give you thousands of extra to play for.
  • A Safe License – It’s always a good idea to take an extra look at the safety surrounding the casino site, as nothing kills your earnings more than a rogue casino. Take a look at reviews of the casino as well as their license to ensure a safe gambling environment.
  • The Game Selection – As previously mentioned, the casino game you play impacts the house edge most. Therefore, make sure any casino you play at has the right casino games that suit your strategy and game style.

Keep in mind that even though a casino bonus can give you a lot extra to play for, you need to know how to turn bonus balance into cash efficiently. Some casino bonuses have tricky requirements that make it nearly impossible to do so, and they are essentially a waste of time. Many players also accidentally break the conditions by playing casino games that are excluded from the bonus and and up forfeiting the bonus due to breaking the rules.

In A Nutshell

We’ve compiled a compact chart of the casino games with lowest house edge, so that you may have this information at the ready when choosing your next game to play from our top casinos list.

Casino GameHouse Edge
Baccarat1.1% to 15.75%
Blackjack 1.5% to 2%
Caribbean stud poker 5%
Craps 1.4% to 5%
European roulette 2.5%
Pai Gow poker 2.5%
Slots 1% to 15%
Three card poker 1.5%
Video poker 0.5% to 5%

Helpful Tips & Advice

  • Always seek to improve your knowledge of gambling and the relevant statistics before diving in
  • Remember that the house edge is not the be-all and end-all although a critical factor to consider
  • Always seek out the casino games with lowest house edge
  • Gamble responsibly and within your limits

FAQs

What is the house edge?

The house edge is the inevitable casino advantage present in any game.

How is house edge related to RTP?

The house edge and the RTP should add up to a 100%, which allows you to calculate one from the other.

Can the house edge be beaten?

No, despite what some strategies may claim, the house edge cannot be completely overcome.

What are the lowest house edge games?

Slots, blackjack and craps are the casino games with the lowest house edge.

What is the lowest house edge online casino games?

Online casinos offer all the games available in traditional casinos and more, and the content of this article is applicable to both. In the case of online casinos, make sure you are considering any available bonus offers as these may affect the associated risk of playing.

author
Kate WebbEditor in Chief

With over ten years of experience working with gambling and writing about casinos, Kate brings a lot of knowledge to CasinoTop3.com. Kate oversees all the content written on CasinoTop3.com to ensure it contains factual information with value to you as a player.