⚠️ 18+ Only: This guide explains the mathematical reality of casino games.
House edge ensures casinos profit over time—no player can overcome it long-term.
Learn about responsible gambling.
What Is House Edge?
House edge is the mathematical advantage that casinos have on every bet. Expressed as a percentage, it represents how much of every bet the casino expects to keep over time.
For example, a 2% house edge means that for every RM100 wagered across all players over time, the casino keeps RM2 and returns RM98 in winnings.
Key Understanding: House edge is not about individual sessions.
You can win big in a single session (short-term variance). But across millions
of bets, the casino's edge guarantees their profit.
How House Edge Is Calculated
Simple Example: Single Number Roulette
European roulette has 37 numbers (0-36). Betting on a single number:
- Win probability: 1/37 = 2.70%
- Lose probability: 36/37 = 97.30%
- Payout if win: 35:1 (bet RM1, win RM35)
Expected value calculation:
(2.70% × RM35) - (97.30% × RM1) = RM0.945 - RM0.973 = -RM0.027
You lose an average of RM0.027 per RM1 bet = 2.7% house edge.
Why Payouts Don't Match True Odds
If roulette paid "true odds" (36:1 for single number), there would be no house edge. But casinos pay 35:1—that gap between true odds and paid odds is the house edge.
House Edge by Game
| Game | Bet Type | House Edge |
|---|---|---|
| Blackjack | Basic strategy | 0.5% |
| Baccarat | Banker | 1.06% |
| Baccarat | Player | 1.24% |
| Roulette (European) | Red/Black | 2.70% |
| Roulette (American) | Red/Black | 5.26% |
| Dragon Tiger | Dragon/Tiger | 3.73% |
| Sic Bo | Big/Small | 2.78% |
| Baccarat | Tie | 14.36% |
| Slots | Varies | 2-15% |
| Dragon Tiger | Tie (8:1) | 32.77% |
What These Numbers Mean
- 0.5% house edge: Lose RM0.50 per RM100 wagered on average
- 5% house edge: Lose RM5 per RM100 wagered on average
- 15% house edge: Lose RM15 per RM100 wagered on average
House Edge vs RTP
RTP (Return to Player) is simply the inverse of house edge:
- House Edge 2% = RTP 98%
- House Edge 5% = RTP 95%
Slots typically display RTP (e.g., "96.5% RTP"). This means 3.5% house edge. For every RM100 wagered through the slot over time, RM96.50 returns to players and RM3.50 goes to the casino.
The Mathematical Reality
Short-Term vs Long-Term
Short-term: Anything can happen. You can win big or lose big. Variance dominates individual sessions.
Long-term: Results converge toward mathematical expectation. The more you play, the more certain your results match the house edge.
The Law of Large Numbers
After 10 bets, your results are unpredictable. After 10,000 bets, your losses will be very close to (total amount wagered × house edge).
Example: If you wager RM100,000 total on baccarat Banker bets
over your lifetime, your expected loss is approximately RM1,060 (1.06%).
Individual sessions will vary wildly, but the long-term average converges.
No System Beats the Math
Every betting system—Martingale, Fibonacci, Paroli, or any other—changes how wins and losses are distributed but cannot change the underlying house edge. The expected loss per amount wagered remains constant regardless of betting pattern.
What This Means for Players
Choosing Games
Lower house edge = slower losses over time. If you're going to play, games like baccarat (Banker) or blackjack (with basic strategy) preserve your bankroll longer than high house edge games.
Entertainment Perspective
The house edge is the "price" of entertainment. Just as you pay for movie tickets or concert seats, casino gaming has a cost. The healthiest mindset is treating your expected loss as the entertainment cost.
Bankroll Implications
- Higher house edge = faster expected bankroll depletion
- More bets = faster expected bankroll depletion
- Larger bets = higher variance but same percentage loss
The Only Way to "Win"
The only way to keep money from the casino is to walk away during a winning session. The longer you play, the more the math catches up. Setting win limits and actually leaving when you hit them is the only player "edge."
For help with gambling: Befrienders Malaysia: 03-7627 2929 (24/7)