Gambling terms, explained straight

Odds, Probability & Bankroll

House edge

The house edge is the percentage of each wager the casino expects to keep as profit over the long run. It represents the average loss a player can expect per bet.

Also called
House advantage, house average, vigorish5
Formula (win/loss bets)
If true odds are t and actual payoff is w, edge = (tw) / (t + 1)2
Roulette (American single-number)
5.26%6
Craps (field bet, 2/12 pay 2:1)
5.56%3
Blackjack (optimal play)
0.5% — 50¢ per $100 bet2

Key points

  • The house edge measures the casino's average profit relative to the player's stake, based on the difference between true odds and payout odds.1
  • For games like craps, the edge may be calculated per bet resolved rather than per initial wager, because some bets take multiple rolls to settle.2
  • Even a small house edge compounds over many bets, making the casino profitable in the long run regardless of short-term results.1
  • The house edge is not a guarantee of loss on any single bet, but the casino's expected profit over many wagers.1

House edge by game

Typical house edges for common casino bets, assuming standard rules and optimal play where applicable.
Game / Bet House edge
Blackjack (basic strategy)0.5%2
Baccarat (banker bet)1.06%4
Craps (pass line)1.41%3
Roulette (American single number)5.26%6
Roulette (European single number)2.70%6

Common questions

What is the house edge in blackjack?

With basic strategy, the house edge in blackjack is about 0.5%, meaning the player can expect to lose 50 cents per $100 bet over the long run.2 This figure assumes optimal play and standard rules; deviations or side bets can increase the edge.

What is the house edge in baccarat?

The house edge on the banker bet in baccarat is approximately 1.06%, while the player bet has an edge of about 1.24%.4 These figures are calculated per bet resolved, excluding ties.

Where this term is used

Sources

  1. House Edge of Casino Games Compared wizardofodds.com Provides the general definition and comparison of house edges across casino games.
  2. Gambling Glossary wizardofodds.com Supplies the formal definition, the formula for win/loss bets, and the blackjack 0.5% example.
  3. House Edge for all the Major Craps Bet on Both a Per ... wizardofodds.com Gives the house edge for the craps field bet at 5.56%.
  4. Baccarat - FAQ wizardofodds.com Provides the baccarat house edge figures for banker and player bets.
  5. Gambling mathematics en.wikipedia.org Confirms the alternative names house advantage and vigorish.
  6. Roulette en.wikipedia.org Provides the 5.26% figure for American roulette and the 2.70% for European roulette.

Sources are drawn from regulators, universities and published research, and each one is labelled with what it actually is — a preprint is not called a paper. Bookmaker and affiliate pages are never cited here, because a page that sells betting is not a neutral authority on it.