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It should be no surprise that the casino has a built-in advantage on its games. The casinos don't beat the players because they get lucky, they beat the players because the odds are stacked in their favor.
This built-in advantage is called the house edge. In numbers, it's the the percentage of the player's bet that the casino keeps as profit, over the long term.
But that's beside the point. The point of the house edge is to see what the average loss is. We all know that the casino wins in the long run.
The house edge tells us how much the casino will win on average. The longer you play, the closer your losses will get to the house edge.
Here's a program that plays roulette to show what happens the longer you play. Note that the actual house edge in American roulette is 5.
Go on, give it a try. What you probably saw from the test above is that between 1 and times, anything could happen. You might even be ahead after rounds.
But the more rounds you play, the more likely you are to lose. After rounds, you'll almost certainly be behind, and your result will probably be within a stone's throw of the house edge.
After , rounds your loss will be pretty close to the 5. The casino doesn't have to beat every player every time. They just know that they'll win around 5.
So that's how the house edge works. The casino doesn't have to destroy you with terrible odds—they give you an almost even game and make just a few percent on each bet on average.
And that's why they don't have to cheat: they have a built-in mathematical advantage on every game, so cheating is pointless.
All the have to do is get you to play, and they'll win in the long run. So if the casino takes only a 5. It's because the house edge applies to the amount you bet , not the amount you take to the casino.
As you play, you win some rounds, and so some of your bets from your winnings, not from the amount you brought with you. The effect of the house edge whittling away at your stash as you constantly rebet it is called the grind.
To lessen the effect of the grind, play games with a lower house edge, and play for shorter periods of time. The ultimate way to avoid the grind is with my Halfies System.
The house edge is different from game to game. Here's the house edge for the most popular casino games. The catch here is that if you don't play the proper strategy, the house edge is even higher.
A craps player who makes sucker bets is facing a house edge higher than 0. A video poker player who is just guessing rather than using a strategy card is likewise getting worse odds.
This would be an even money bet. However, if the casino only paid you 95 cents every time you won instead of a dollar the House edge would be 2.
Simply put, The house edge is the difference between the true odds and the odds that the casino pays you when you win.
All are fixed except for Blackjack and Video Poker. These two games actually can have a positive payback depending on the skill of the player and the rules or payback table.
Look at the game of Roulette. You will see that the house edge is 5. This is how we figure the edge. In the game, there are 36 numbers plus the 0 and The odds of you winning is one in 38 or 37 to 1.
If you win the casino pays you 35 for your dollar bet. The difference is two dollars 38 minus So you could actually cover all the numbers on the layout and still lose money.
These are great odds for the house but not for you. Games like Roulette, Craps , Big Six a have a fixed percentage because one roll or spin will never change the outcome.
There will always be 38 numbers on a roulette layout and 12 numbers on a pair of dice. Blackjack is in a different category because every time a card comes out of the shoe, it changes the makeup of the cards remaining.
The advantage can shift from player to house depending on which cards have been played and the Skill in which you play your cards. Video Poker also is based on skill.
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