When you hear the word, “casino” of newtown casino, what usually comes to mind? You might think of a fun place or something that you want to visit because you’ve seen one in the movies. Well, those are actually true, but there is one true essence of a casino that people rarely think about.
What I am trying to say is that casinos, at the end of the day, are still business entities. Bob Stupak, the former owner of Vegas World Casino has put it succinctly: “It is our duty to extract as much money from the customer as we can while sending them home with a smile on their face.”
Now, you might think by reading that statement that casinos are only out there to get your money through shady means, but this isn’t actually the case. The reason why casinos get a bad rap is due to some players’ inability to stop playing even though the odds are against them.
Casinos do not cheat because aside from Video Poker and Blackjack, the establishment always has a built-in profit system on every bet. This is actually known as the “house edge” and it is also referred to as the “Casino Advantage.”
The House Edge
In every bet that you place, you have a certain chance of winning. For most games, it would be 50/50, but there are also other instances where the chances of winning are slim, but the rewards are actually pretty great.
For example, if you happen to bet on a flip of a coin, your chances of winning are essentially 50/50 given that the coin either lands on either a head or a tail.
This type of bet would be known as the even money bet.
When you bet a dollar and you are paid a dollar, that is actually known as the true odds. But, whenever you receive a percentage smaller so that instead of getting the full dollar, you get 95 cents. The missing amount is actually acquired by the “house” and judging from the example, the house edge is 2.5%.
In other words, the house edge is the difference between the true odds and the odds that the casino pays you when you win.
Let’s take a look at the roulette as an example. The usual house edge for this game is set at 5.26% for the double zero. In the American Roulette, you will have 36 numbers and there are also two extras as well such as the 0 and the 00.
The odds of you winning would be 1 in 38 or 37 to 1. In the event that you win, the casino is obliged to pay you 35 dollars for your dollar bet. You get to keep the original dollar and you will be given an extra 35 which will amount to 36.
So, since there are 38 numbers in total in the roulette wheel, the difference is $2. Divide $2 by 38 (true odds) and you will then be given a 5.26% value which is the house edge. Keep in mind, this is only for the Roulette and any other game has its own percentage.