Casinos are the perfect form of entertainment for adults. They offer a huge range of games to suit everyone’s tastes, paired with a chance of winning real money if you manage to ‘beat the house’. With that said, have you ever wondered what beating the house actually means – and what the casino house edge really is?
Read on to find out more about how the casino house edge works, how casinos make their money, and how to maximise your own chances of winning big.
What Is the House Edge?
There is a common misconception on the ground that casinos make their money by cheating their players, but this just isn’t true! Casinos make their cut through a guaranteed profit that is built into every bet that you place. This small margin is known as the house edge.
Most casino games have a house edge built into them, but there are some exceptions like Blackjack and Video Poker. The easiest way to understand the house edge is to compare it to a coin toss. If you and another person were to place bets on the results of a coin toss, the odds of the coin landing on either side would be 50% or 1:1. If your wager was correct and you had bet $2, you would win an even $2. In the case of casinos, the same coin toss might pay out $1.95 instead of the full $2. This $0.05 difference would constitute the house edge, and it ensures that casinos can keep their doors open while still offering solid winning chances to their players.
Why Does the House Edge Exist?
You might never have heard of the casino house edge before. This is because most casinos do not advertise the fact that they have one! This is not to mislead players, but instead works in a similar way to taxes. Casinos also have bills to pay, and without their small cut from every wager you place they would quickly face financial struggles.
House Edge Variations
House edges are usually quite simple to understand, as they constitute a set percentage or portion of any bet you place. However, some games – table games in particular – can have more complex house edges due to their own complexities. Take Baccarat for example. In this game, the house edge will depend on the position you are wagering from. A Bank bet has a very minor house edge, but betting on a Tie will see you paying a much larger edge.
This can be challenging to understand at first, but don’t fear. Once you have a good understanding of how the house edge works, you can use your knowledge to tilt your own odds in your favour. One thing to be aware of when it comes to house edges is that different online casinos with NZ dollars can offer different edges for the same games. It is best to do your research and find out as much as you can about your online casino before you start playing there. This will help you to spot brands with unfair edges and find the best deals for you!