The advantage of the house designates a mathematical advantage that casinos naturally have on players. It is not the special fact of the casino, but rather games. This is what means that a casino does not need to cheat to enrich themselves, since the probabilities already give it an advantage. At the online casino, technology is used to implement this advantage in automatic games with RNG. Let’s see how it works.
How does the advantage of the house work?
Casinos use mathematics to generate profits. They calculate the probabilities of each game, then fix earnings lower than real probabilities. This difference is the advantage of the house.
Here is a simple example: during a fair draw, you have a 50 % chance of winning. If you set 1 € and win, you should get € 2 (your 1 € plus a profit of 1 €). But in reality, the casino will only pay you € 1.90. The additional € 0.10 it keeps constitute its advantage.
Online technology and casinos
Online casinos use generators of random numbers or RNGs to manage games. These algorithms are tested by independent laboratories in order to guarantee equity. However, the calculations that underlie them always promote the house. More specifically, the RNG generates numbers in a pseudo-random manner. Each number is used to determine the result of a game and the advantage of the house
The new online casinos offer technology called Provublic Fair. It allows the player to check for himself if the result of a game is rigged. It is thanks to Blockchain technology that such an verification is possible. However, Provublic Fair does not change the advantage of the house on a particular game.
In the specific case of slot machines, when you press the “spin” button, the RNG selects a random number, which it associates with a result. The machine knows its redistribution rate in advance.
The online platforms follow each round, each card and each bet. Some online games even display the return rate to the player (RTP). If a 96 %RTP slot machine, it means that it retains 4 %, which represents the advantage of the house.
Home advantage per game
Let us see how the advantage of the house affects three popular games: slot machines, poker and roulette.
1. slot machines
The slot machines are the most popular casino games, partly for the big gains they offer. They are also the most profitable for casinos. For what ? Because they offer a high house advantage.
The advantage of the house on slot machines generally varies from 2 % to 15 %, depending on the machine. This means that for each bet of € 100, you lose average between € 2 and € 15. They are entertaining and easy to play, that’s what attracts players. But the probabilities are definitely not in their favor.
2. POKER
The poker is different, since here we play against other players and not against the house. So technically, there is no advantage of the house on the cards themselves.
But to make profits, casinos still keep a percentage of bets, called Rake, or Commission. It is fixed on each pot or participation in a tournament. This amount is often about 5 %.
This Rake represents the advantage of the poker casino. It doesn’t matter who wins or loses, the house always cashes its share. Over time, the rake accumulates. Talented players can beat the others and pocket the gains. But the casino still wins its share.
3. Roulette
Roulette is a classic example of the way in which the advantage of the house clearly works. In American roulette, there are 38 numbers: 1 to 36, 0 and 00. If you are betting on a single number, your chances of winning are 1 in 38. But the gain is only 35 against 1. It is lower than real probabilities. This is what creates the advantage of the house.
Let’s do the calculation:
- You bet 1 € on a number.
- You win 35 €
- But your real chances are 37 defeats for 1 victory.
This creates an advantage of the house of around 5.26 % in American roulette. European roulette has only one zero, its advantage is therefore lower since it is 2.7 %.
Why does the house still save time?
The advantage of the house does not guarantee the Casino to win every time. In reality, players can win, and actually win. But on several bets and with several players, the advantage plays in favor of the casino.
Imagine that a game has an advantage of the house of 5 %. You play 1,000 hands and bet 5 € each time. This represents a total of € 5,000. The expected loss is 5 % of € 5,000, or € 250.
