Understanding House Edge

July 19, 2013

We have all met those die hard anti-gambling people, the ones that invariably tell you that the casino always wins. Have you ever wondered just why they say this? Then read on, we explain why below.

When it comes to any gambling, online gambling included, that is facilitated through either a real world casino, or an online casino, then it makes sense that the online casino needs to make a profit right? So how could they do this if they didn’t have an advantage? Something more than sheer luck to make sure they earn a profit. It doesn’t take much imagination to realize that if the online casino operators didn’t have some form of advantage, they would soon go broke. Of course they have an advantage, it’s called the house edge.

The house edge comes into play any time you are playing an online gambling game where the online casino is the dealer. For the sake of online slot games, let’s call the video slot itself the dealer. Unlike games such as online poker, where the player is pitting their wits against other players, on an even playing field, playing a video slot game relies an awful lot on luck. This luck has to overcome the built in profit that the online gambling site has, in the form of the house edge.

The house edge is the term used to describe the overall chance the player has of winning their stake back. Most online casino operators set the house edge for online slot games to somewhere around 95%. This means that for every $100 you wager, the law of averages says you should receive $95 back.

Of course, people do hit it big, and land a progressive jackpot or some other big win whilst playing an online slot. But as part of the big picture, this cash still comes out of the 5% that the casino has raked in as the house edge, it’s all about the amount of money wagered in total at the casino.

For example, if a progressive jackpot pays out five million dollars, it means that overall, players at the online casino will have wagered something like 100 million dollars. The house edge makes sure that the online casino never loses money, and makes a very small percentage profit on every spin of the reels.

Other Recent Articles Added to 777 Online Slots