What is house edge in casino

Definition: House Edge is the mathematical advantage the operator has over the player, expressed as a percentage of total stakes over the long run.

It represents the expected loss for the player over time under optimal/standard play.
Example: a 3% house edge implies that, on average, the operator retains €3 for every €100 wagered (over a large number of bets), though short-term results can vary widely.
House edge is closely related to RTP in casino: House Edge = 100% − RTP (in simplified theoretical terms).

Back to Glossary

Related Terms

Implied Probability

Implied probability is the chance of an outcome expressed by the odds. It converts a price into a percentage.

Odds Formats (American, Decimal, Fractional)

Odds formats are different ways of writing the same price. A sportsbook front-end can display decimal, fractional or American odds depending on the market and player settings.

Fixed Odds

Fixed odds betting is a model where the price is agreed when the bet is placed. The payout is calculated from those odds, even if the market price changes later.

Wager (Stake)

A wager is a bet placed on an outcome. The stake is the amount of money committed to that bet. In everyday use the two words are often interchangeable.

let's do business