House Edge
The mathematical advantage the casino holds over the player on any given bet, expressed as a percentage.
Detailed Explanation
House edge is the long-run percentage of each wager that the casino expects to retain as revenue, derived from the difference between the game's true odds and the payout odds. For example, a roulette number pays 35:1, but the true odds of hitting any specific number on a European wheel are 36:1. The casino earns one unit on every 37 spins on average — a house edge of 2.70%.
House edge is expressed as a percentage of the original wager and represents the long-term average loss rate. Over 1,000 spins of $100 on European roulette, the expected loss is $2,700 — though individual session results can vary wildly.
Comparison of house edges: Baccarat Banker 1.06%, Blackjack with basic strategy 0.5%, European Roulette 2.70%, American Roulette 5.26%, Craps Pass Line 1.41%, Craps Any Seven 16.67%, Slots 2–15%. Choosing bets with lower house edges is the single most impactful decision a player can make.
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Flat Bet
Wagering the same amount on every hand, spin, or round regardless of prior outcomes.
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Hold
The percentage of drop that the casino retains as revenue after paying all winning bets.
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Theoretical Loss
The mathematically expected average loss for a player based on their action and the house edge.
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Variance
The statistical measure of how much actual results deviate from the expected value over a series of bets.