What is the house advantage?

What is the house advantage?Dissecting the Concept of the House Advantage

Gambling has its fun but only if you are aware of what you are doing. Never get into a casino without understanding some of the facts. House advantage is one of the terms that you will come across when learning the basics of playing an online or offline casino. What does the term mean though?

House advantage is the mathematical edge held by a commercial gambling venue. The function of the house edge is to ensure that the casino or whatever venue you are gambling at retains a certain percentage of the money that players spend. Regardless of what a casino promises its customers, the bottom-line is that it is a commercial venture. It has to pay its workers, maintain the premises and pay for equipment. A casino needs to make money, and the best way to do that is by taking a fraction of the bets you make. The house advantage means that for every wager that a player makes, there is a probability of him or her losing and the casino winning.

How does it Work

How do casinos do it though? All the games have to be designed in a way that the probability of losing is higher than that of winning but how do gambling venues achieve this? Every game in a casino comes with specific rules, and some of them are meant to give an edge to the house. From the type of equipment used and the betting rules and strategies in place, a game is structured to increase the chances of the house winning. In blackjack for instance, if the dealer and the player both ‘bust’, the player loses. It means that the bets end up with the house. Another example is roulette where the odds are 37 to 1; there are 36 possible stops in roulette plus the zero, making it 37. It means that the true odds of a player winning are 1 in 37, but the payout odds are 35 to 1; that is, the casino pays out 35 for a euro bet. From these calculations, the casino holds a house advantage of 2.7%.

What happens is that the true odds of a game are higher than the payoff odds of the casino. You calculate the house advantage by subtracting the payout odds from the true odds then find the percentage. In the above instance, the house edge is (37-35=2 then 2/37 to get the %). From these figures, it shows that a player could stop at all the 37 points of the roulette and still fail to win.

In some games such as craps, roulette and big six, the house edge remains constant because the number of stops doesn’t change. However, the advantage can vary from one region to another. In some areas, roulette wheels have 37 stops while in others, it has 38. This difference will affect the house advantage, and a player should be aware of it before getting started. Other games where you will find that payoff odds are lower than the true odds include Pai Gow poker, three card poker and mini-baccarat. The house advantage in blackjack is somewhat different because, with every draw of the card, it changes. Depending on the cards that remain in the shoe, the edge can shift between the player and the venue. The skills of the player will also determine where the advantage lies. Video poker is another game where the edge can fluctuate.

What does it Mean?

Just because there is a house edge on all games doesn’t mean that a player will always lose. The house advantage is designed such that the losses are spread out over a period. It means that a player who wagers for an extended time will tend to lose more money in the long run. Wins will happen unexpectedly, especially in the games that rely on luck. It is possible, though for a player to manipulate the house edge in games like blackjack and video poker where the technique can affect the odds. A player can improve his or her skills by using online resources and strategy books to find the best tactics, depending on the environment.

One point that every player should be aware of is that the house advantage does not just apply to the initial bet you place on a game but the total amount wagered. You will find a player putting back their winnings, credits or chips into a game, which means that their total bets at the end of the day are high, and that means more of their money is exposed to the house edge.

The house advantage is a concept that has been accepted in the gambling industry. It allows commercial gambling venues to keep part of the bets that players make to contribute towards their revenue. The house edge can vary significantly among games and casinos. A player should understand the odds that he/she is playing with. Knowing the house advantage clues a player in on the risks that come with a particular game and casino, which is necessary before betting.

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