Gambling corporations talk first and foremost about profit, because they are in the business of making money. It’s no different in the online casino industry. However, instead of profit, they describe their earnings as the house edge.
Understanding the House Edge: How Online Casinos Make Money
All casino games hold a house edge. That’s why it’s called gambling, after all, because there’s no guarantee of a win. With every casino game you play, you are taking a chance that you will lose some or all of your money.
There’s that old saying in the gambling industry that the house always wins. Well, they don’t always win. Otherwise, no one would gamble. But the fact of the matter is that much more often than not, the casino is going to be taking your money, and it has nothing to do with manipulation.
They may be called games of chance, but online casino apps are leaving nothing to chance. They’ve done the research, run all the scenarios and logged all the algorithms. The casino operators know exactly how often wins will be paid out and can accurately assess how much they will be raking in from their customers. And it’s a lot.
Estimates are that a major online casino brands such as betMGM casino can garner nearly $15 million in profit per month. And they know exactly what level of gross profit to expect each game to deliver.
For example, the house edge on roulette, the most popular casino table game, is 5.26%. That means for every $1 million bet at the casino’s roulette tables, the casino take will be in the neighborhood of $50,000, especially during live casino sessions.
And the laws of probability show that the longer you play casino games, the greater the chance is that you will lose. That house edge will grind away at you until the laws of probability catch up to you. Estimates are that barely more than 13% of all gamblers will make money.
Still, there’s the chance of winning big and that’s the lure of gambling, being in there with a chance to hit the big one. And according to the house edge, the games giving you the best chance to do so are blackjack and video poker. Here is a link to our article about games with the best odds.
At the other end of the scale, the greatest house edge comes from keno and sic bo. The house edge on keno is a whipping 40%. For slot sites and their online machines, the most popular game of all at online casinos, the house edge is 15%.
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