What House Edge Actually Means
House edge is the single most important number in any casino game — and the one most players never look up. It represents the percentage of every dollar wagered that the casino expects to keep over the long run. A house edge of 2% means that for every $100 you bet, the casino expects to keep $2 and return $98 to you over time.
This is a long-run mathematical expectation, not a guarantee on any single bet. You can win on any given hand regardless of the house edge. But the more you play, the more reliably your actual results converge toward the mathematical expectation. This is why casinos are profitable businesses — not because they win every hand, but because the math is always working in their favor.
The Core Formula
House Edge = P(lose) − P(win) × Payout
For a coin flip paying even money: P(lose) = 50%, P(win) × 1 = 50%. House edge = 0%. For a coin flip where the house wins all ties: the house edge rises above zero even though the flip itself is 50/50. This is exactly how most casino tie rules work — and where most house edge comes from.
The Best Bets in the Casino
The games with the lowest house edge share a common trait — they require either some strategy on the player's part or they involve a simple comparison mechanic with favorable odds. These are the games where your money lasts longest and where skilled play genuinely makes a difference.
Blackjack — 0.5% With Basic Strategy
Blackjack played with basic strategy — the mathematically correct decision on every hand — carries a house edge of approximately 0.5% under standard Las Vegas rules. This makes it one of the best bets in any casino. The key word is basic strategy. Without it, the house edge climbs to 2% to 3% as players make suboptimal decisions. The strategy chart is not a suggestion — it is the mathematically correct answer to every hand situation, derived from millions of simulated hands.
Rule variations matter significantly. A blackjack paying 6 to 5 instead of 3 to 2 adds approximately 1.4% to the house edge by itself. Always seek tables paying 3 to 2 on blackjack.
Best Blackjack Rules to Look For: 3:2 blackjack payout — dealer stands on soft 17 — double after split allowed — late surrender available. These four rules together produce the lowest possible house edge.
Baccarat — 1.06% on the Banker Bet
Baccarat is one of the simplest casino games and one of the best. You make one decision — Banker, Player or Tie — and the dealer handles everything else. The Banker bet carries a 1.06% house edge after the 5% commission on winning banker bets is factored in. The Player bet carries 1.24%. The Tie bet carries 14.36% and should never be placed.
Baccarat's reputation as a high-roller game obscures the fact that it is mathematically one of the most player-friendly games on the floor. Any player willing to bet the banker and ignore the tie bet is making a near-optimal play.
Craps — 0.37% on Pass Line with Full Odds
The Pass Line bet in craps carries a 1.41% house edge — reasonable but not exceptional. The reason craps belongs on this list is the Odds bet. Once a point is established, players can take Odds on their Pass Line bet at zero house edge. The casino pays true odds on the Odds bet — no house advantage at all. Combined with the Pass Line, taking full odds (3-4-5x where allowed) reduces the blended house edge to approximately 0.37%. This makes it one of the mathematically best bets available anywhere.
| Game & Bet | House Edge | Skill Required | Verdict |
|---|---|---|---|
Blackjack Basic strategy |
0.50% | Yes — strategy chart | Best in casino |
Craps — Pass + Full Odds 3-4-5x odds |
0.37% | Minimal | Best in casino |
Baccarat — Banker Standard 8 decks |
1.06% | None | Excellent |
Video Poker — Jacks or Better Full pay 9/6 machine |
0.46% | Yes — strategy required | Best in casino |
European Roulette Single zero wheel |
2.70% | None | Acceptable |
All figures based on exact probability calculations under standard rules.
Mid-Range Bets — Acceptable but Not Optimal
These games and bets carry house edges in the 2% to 5% range. They are not the best deals in the casino, but they are not unreasonable. Players who enjoy these games can play them with a clear understanding of the cost.
Three Card Poker — 3.37% Ante-Play Combined
Three Card Poker is one of the most successful independent table game inventions in casino history. The Ante-Play combined house edge of 3.37% is reasonable for a game with an entertaining format. The Pair Plus side bet carries 7.28% — acceptable for an occasional bet but not a foundation for your play. The 6-Card Bonus can exceed 20% on some configurations and should be avoided entirely.
Ultimate Texas Hold'em — 2.19% Optimal Play
Ultimate Texas Hold'em gives players more decisions than most table games — when to raise and by how much. Played optimally the combined house edge is approximately 2.19%. The Trips bonus side bet ranges from 1.9% to 6.2% depending on the pay table. Always check the pay table before sitting down — the difference between a good and bad Trips pay table is significant.
American Roulette — 5.26% on Everything
American roulette has a 5.26% house edge on every single bet on the layout — with one exception. The five-number bet covering 0, 00, 1, 2 and 3 carries 7.89% and should never be placed. The same house edge applies whether you bet a single number, a color, odd/even or any other combination. The double zero wheel is simply more expensive than the European single zero wheel at 2.70%.
The American Roulette trap: Roulette looks like a game of choices — dozens of different bets, different parts of the layout, different strategies. None of it matters. Every bet carries the same 5.26% house edge. The game has no strategy and the only meaningful decision is whether to play at all.
The Bets to Avoid
These bets carry house edges that no amount of luck can reliably overcome over time. They exist on casino floors because they look exciting or because players do not know the numbers. Now you do.
Blackjack Insurance — 7.69%
Insurance is offered when the dealer shows an Ace. The casino asks if you want to insure your hand against the dealer having blackjack. The bet pays 2 to 1 if the dealer has a 10-value down card. The problem is that in a standard deck only 30.8% of cards are 10-value — the insurance bet needs 33.3% to break even. The house edge is 7.69% and the bet should never be taken regardless of what you are holding. Even if you have blackjack yourself, taking even money is the same bet mathematically and equally wrong over time.
Baccarat Tie Bet — 14.36%
The Tie bet in baccarat pays 8 to 1 when both the Banker and Player hands have the same total. It looks exciting and the payout sounds generous. At 14.36% house edge it is fourteen times more expensive than the Banker bet sitting right next to it. There is no strategic reason to ever place the Tie bet.
Casino War Tie Bet — 18.65%
Casino War is a simple high-card comparison game with a 2.88% house edge on the main bet — manageable if not ideal. But when a tie occurs, players can choose to go to war or surrender. The Tie bet — wagering that a tie will occur — carries 18.65% house edge. It is a pure excitement bet with very poor mathematics.
Keno — 25% to 40%
Keno is the worst mathematical bet most casinos offer. The house edge varies by casino and ticket configuration but typically falls between 25% and 40%. For comparison, a 35% house edge means the casino keeps $35 of every $100 wagered on average. The only reason to play keno is if you enjoy the format and accept that it is a form of entertainment with a significant cost rather than a competitive wager.
| Bet to Avoid | House Edge | Better Alternative |
|---|---|---|
Blackjack Insurance |
7.69% | Never take it — ever |
Baccarat Tie Bet |
14.36% | Banker bet at 1.06% |
Casino War Tie Bet |
18.65% | Main War bet at 2.88% |
Big Six Wheel — $1 spot |
11.11% | Any table game |
Keno — any ticket |
25–40% | Any table game |
American Roulette — Five Number |
7.89% | European roulette at 2.70% |
A New Game Worth Knowing — Beat the Dealer
Beat the Dealer is a new patented casino card game currently in placement discussions with casino operators. It introduces something genuinely novel — two mandatory bets on every hand that settle completely independently. The Dealer Bet carries zero house edge under Configuration A — all tied high cards push — making it one of the only casino bets where the house has no mathematical advantage on that specific wager. The game's revenue comes from the Prediction Bet at 7.40% and a selection of side bets.
A Dealer Bet with zero house edge combined with a Prediction Bet that generates 7.40% produces a blended mandatory edge of 3.70% — reasonable for a two-bet mandatory structure and better than most comparable table games.
The takeaway on Beat the Dealer: The Dealer Bet at 0.00% house edge is not a marketing claim — it is a mathematical fact derived from exact combinatorial analysis of all possible outcomes from a six-deck shoe. See the full analysis →
The Bottom Line
Casino house edge exists on a spectrum from near-zero to genuinely predatory. The casinos do not advertise these numbers because most players never ask. Now that you have them, the choice of where to put your chips is an informed one rather than a guess.
The three practical rules that follow from this analysis: play blackjack with basic strategy or baccarat banker if you want the best odds — avoid insurance, tie bets and keno under any circumstances — and understand that no betting system or strategy can overcome a negative expected value bet over the long run. The math is the math.
Every other article on this site goes deeper into specific games. Start with the games you actually play and learn the numbers that govern them. That is the only edge available to a casino player — knowing what you are actually paying for.