Casino House Edge Explained — Every Game Compared
What the house edge means, how it's calculated, and how every major casino game compares: blackjack, roulette, baccarat, craps, poker, and slots. Includes a full comparison table.
The house edge is the single most important number in casino gambling. It determines how much every game costs you over time — and understanding it is the first step to making smarter decisions at the table.
What Is the House Edge?
The house edge is the casino’s mathematical advantage over the player, expressed as a percentage of each bet. A 1% house edge means the casino expects to keep $1 for every $100 wagered, on average, over many bets.
The house edge is not a per-session guarantee — you can win big or lose quickly in any single session. But over thousands of bets, the results converge toward the mathematical expectation. The longer you play, the more likely your actual results match the theoretical edge.
House edge = 1 − RTP (Return to Player)
A game with 99% RTP has a 1% house edge. A game with 94% RTP has a 6% house edge.
House Edge by Game
| Game | Best-case edge | Notes |
|---|---|---|
| Blackjack (basic strategy) | 0.5% | Varies by rules; perfect strategy required |
| Craps — pass line + max odds | 0.2–0.5% | Free odds have 0% edge; combined depends on odds taken |
| Craps — pass line (no odds) | 1.41% | Still good; add odds to improve |
| Video Poker (Jacks or Better, full pay) | 0.5% | Requires optimal hold strategy |
| Baccarat — Banker | 1.06% | After 5% commission; consistent, no strategy required |
| Baccarat — Player | 1.24% | Second best baccarat bet |
| European Roulette | 2.7% | Single-zero wheel |
| American Roulette | 5.26% | Double-zero; avoid if European is available |
| Slots (online) | 4–6% typical | Varies widely (2–15%); check RTP before playing |
| Baccarat — Tie | 14.36% | Avoid; high edge despite 8:1 payout |
| Craps — Any 7 | 16.67% | Worst bet on the craps layout |
| Keno | 20–35% | Lottery-style; very high edge |
The Best Games to Play
1. Blackjack with Basic Strategy — ~0.5% edge
Blackjack is uniquely skill-dependent. The house edge of 0.5% assumes perfect basic strategy — the mathematically optimal play for every hand. Without basic strategy, the edge rises to 2–4% depending on the player’s decisions.
The specific edge also varies by rules. Look for: dealer stands on soft 17 (S17), blackjack pays 3:2 (not 6:5), and the ability to double on any two cards and split up to 3 or 4 times. Try these rules at the blackjack tables online.
2. Craps — Pass Line + Free Odds
Craps combines a reasonable flat-bet edge (1.41% on pass line) with the unique free odds bet — the only casino bet with zero house edge. Free odds pay true mathematical probabilities with no profit margin for the house.
The combined edge depends on how many times odds you take:
| Odds taken | Combined edge |
|---|---|
| 1× | 0.85% |
| 2× | 0.61% |
| 3-4-5× | 0.37% |
| 10× | 0.18% |
If the table allows 10× odds, the combined pass line + odds bet is among the lowest-edge plays in any casino.
3. Baccarat — Banker Bet
Baccarat requires no strategy decisions. The banker bet pays 0.95:1 (after 5% commission) with a house edge of just 1.06%. It is one of the best “no thinking required” bets in the casino — which explains its enormous popularity in Macau and among high rollers globally.
Avoid the tie bet (8:1, 14.36% edge) regardless of how attractive the payout looks.
Games to Avoid or Approach Carefully
Slots: RTP and edge vary enormously (85–98% RTP in online casinos). Always check the published RTP before playing a slot. Slots above 96% RTP are reasonable; below 94% is poor value.
Roulette: European (single-zero) is fine at 2.7%. American (double-zero) doubles the edge to 5.26% — avoid it if you have the choice. See the roulette guide for a full breakdown of variant rules.
Proposition bets in craps: Any 7 (16.67%), hardways (9–11%), horn bets (~12.5%) — these exist to boost casino revenue. Avoid them entirely.
Why the House Edge Compounds
The house edge is applied to every bet placed, not just the starting bankroll. This means the longer you play and the more bets you make, the more the edge compounds against you.
Example: $100 bankroll, $10 bets, 200 bets per hour, 2.7% roulette edge:
- Expected loss per hour: 200 × $10 × 0.027 = $54/hour
At blackjack with 0.5% edge and the same parameters:
- Expected loss per hour: 200 × $10 × 0.005 = $10/hour
Game selection is far more impactful than any betting system.
The Bottom Line
- Choose games with the lowest house edge — blackjack, craps pass line + odds, baccarat banker.
- Learn the optimal strategy for skill-based games (blackjack, video poker).
- Avoid high-edge bets even in otherwise good games (craps props, baccarat tie).
- Check RTP for slots — there’s enormous variance in the category.
- No betting system (Martingale, Fibonacci, etc.) changes the mathematical edge. They only redistribute variance.