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All casino games, whether played at a traditional casino or online, have an in-built mathematical house edge.
The house edge for a given game and player will be determined by the player's skill (where the game is a skill based game) and the game rules. If the game is played optimally, the house edge is reduced substantially but is still present (unless you can count cards playing blackjack, in which case the edge swings in the player's favor...but that's another story).
If a game has a house edge of 1% for optimal play, this means that the likely outcome from $100 in bets placed will be a $1 player loss. This can also be expressed as 99% payout ratio, or 99% return to player (RTP) ratio.
A very important fact, and one lost on many gamblers, is that different casino games have vastly different house edges. So if you want to maximize your returns and therefore your chances of a win, it pays to pick your game. The tables below illustrate this difference and bring to light some key points:
'skill' games (blackjack, video poker, baccarat etc) offer far better returns than 'no skill' games like slots an keno.
certain skill games, when played optimally reduce the house edge to close to zero.
Table 1. Historical audited RTP rates by game for 2005 at Inter Casino
*simple average of monthly audited RTP rates for Jan - Dec 2005
Game | Audited RTP rate (%)* |
Baccarat | 99.2 |
MP Baccarat | 98.7 |
BlackJack | 98.7 |
MP BlackJack | 98.3 |
Video Poker | 98.1 |
Craps | 97.8 |
Rags To Riches | 97.7 |
Pai Gow Poker | 97.3 |
All Games | 97.2 |
Roulette | 96.4 |
MP Roulette | 96.4 |
MP Caribbean Stud Poker | 96.3 |
Caribbean Stud Poker | 96.0 |
Let-It-Ride | 95.8 |
Video Slots | 94.9 |
Slots | 94.4 |
Red Dog | 94.1 |
MP Let-It-Ride | 93.1 |
Table 2. Mathematical house edge for optimal play as published by the Wizard of Odds
*Las Vegas rules unless otherwise stated.
Slots and Keno returns set by operator.
Game | House edge* (%) |
BlackJack | 0.28 |
Video Poker (jacks or better) | 0.46 |
Baccarat | 1.06 |
Craps | 1.36 |
Pai Gow Poker | 1.46 |
Roulette (European single zero) | 2.70 |
Red Dog Poker | 2.80 |
Let-It-Ride Poker | 3.51 |
Caribbean Stud Poker | 5.22 |
Roulette (American double zero) | 5.26 |
Slots* | 5 - 15 |
Keno * | 25 - 29 |