Casino games have one common thread that isn’t left to chance – the house always wins. No matter how many strategies you employ, how good a player you are, or how carefully you place your bets, the casino will turn a profit at the end of the day. At the core, casinos are a business, which means they must turn a profit.
How casinos turn a profit
Whether you are playing in a brick-and-mortar casino or just playing casino games online, the basic gambling principle of house edge still applies. Like any other business, casinos have a business model in place to ensure maximum profitability.
The House Edge
Regardless of the game, the odds are always in favor of the casino. This doesn’t mean you’ll never win; it simply means that the odds of the casino winning are higher than the odds of you winning. Yes, there are instances where gamblers win a large jackpot, and the casino loses on a particular game. It’s this chance that keeps people playing in the first place.
Casinos profit in the long term because, over time, they win more than they lose. The odds are in their favor. The house edge represents the amount of gross profits casinos can expect to earn long-term. While some games have a slight house edge, like 1-2%, others have huge ones and earn 25% or more in casino profits.
To put this in perspective, the house edge of a roulette table is roughly 5%. For every million dollars bet at a roulette table, the casino expects to profit about $50,000. The other $950,000 can be expected to be returned to players. Casinos don’t take all their money in a single game; they just make sure that players lose more than they spend in the long run.
How Players Lose
The existence of the house edge is common knowledge. What many players don’t grasp are the implications. Many gamblers believe that if they sit down with $100, a 5% house edge means they can expect to lose about $5. This basic understanding of house edge is the reason players lose so much money on casino games.
The house edge doesn’t apply to your entire bankroll; it applies to the amount of your wagers. If you make $5 bets on a roulette wheel and the wheel spins 50 times an hour, you’re wagering $250 an hour. After four hours of play, you will have wagered $1,000 and lost $50; 5% of your total wager.
The Extra House Edge
In the short term, players can end up ahead. Casinos count on the house edge in long-term play. This is why casinos do everything they can to keep you playing for longer. Land-based casinos are famous for lacking windows and clocks, allowing you to lose track of time and play for longer. Online casinos offer bonuses and free spins to keep you playing.
The Bottom Line
While the odds are always in the casino’s favor, there are still opportunities to win. The key lies in setting limits for yourself and walking away while you’re ahead.
