janskd2w Posted May 26, 2019 #1 Posted May 26, 2019 Is anyone else confused on what the house edge really means? It seems as if they have set it up so in the long run they should be getting 1% of what is wagered. Which doesnt seem right. If you look at dice set to 1.01 payout.. the win chance is 98%. This is way too high imo. That means that with 100 bets you should lose 2 on average. When with no edge it should only be one. That's much higher than a 1% house edge. That's more like 50% house edge. But then if we look at dice set to 1.1 payout it says there's a 90% chance of winning. If that were the case that would mean there's no house edge?? That makes no sense to me. Anyone have more clarity?
ceastem Posted May 26, 2019 #2 Posted May 26, 2019 It just meant that there is 1% where you have no chance to win. you can notice that the maximum percentage you can win in dice is 99% and the multiplier is already at 1.00 so you win nothing and a chance to lose everything. guess what the 1% is?
nuuuitsjdragon Posted May 26, 2019 #3 Posted May 26, 2019 2 minutes ago, ceastem said: It just meant that there is 1% where you have no chance to win. you can notice that the maximum percentage you can win in dice is 99% and the multiplier is already at 1.00 so you win nothing and a chance to lose everything. guess what the 1% is? Oh this sums it up pretty nicely, so in any other game I just have to look at a situation or bet setting (if possible) and find a situation whereby I’m just getting back the full amount of my bet only then looking at the % > House Edge? I wonder how this is calculated for some games with multiple factors though or rather like for Dice if there are 2 different high-low does this affect the edge or just the variance?
williamshennie9 Posted May 26, 2019 #4 Posted May 26, 2019 17 minutes ago, janskd2w said: If you look at dice set to 1.01 payout.. the win chance is 98%. This is way too high imo. That means that with 100 bets you should lose 2 on average. When with no edge it should only be one. That's much higher than a 1% house edge. That's more like 50% house edge. Yes, you should lose two bets out of 100, you are 100% correct. But think about this - if there house edge was zero, the payout would be 1.02 on 98% chance, since that will even out the luck. Another way to look at it is the 9900x payout. The chance of getting it is 1/10000. Therefore the payout should be 10,000x but due to the 1% house edge, it is 9900x.
SovietDoggo Posted May 26, 2019 #5 Posted May 26, 2019 House edge is a tiny takeback from the casino and for luck purposes, it's not crazy of course
Kate Posted May 26, 2019 #6 Posted May 26, 2019 It basically means 99% is a chance where you have 50 50 with the casino and the rest 1% you have no chance at all basically like 100-0 casino.
Shaniqua Posted May 26, 2019 #7 Posted May 26, 2019 perhaps this topic would be better suited for the maths and probabilities section? it is no doubt an excelent topic though, it should be understood by all who gamble onlines
GKD09 Posted May 26, 2019 #8 Posted May 26, 2019 I'm sure you have understood what the 1% house edge means by others comments but I'd like to add on it too Every casino has a house edge on all games, and that is why the casino never loses. Whether it's in a real casino with the randomness of humans with well-calculated games (eg Roulette) or online casinos with randomness in their coding. There will always be a house edge for them to be profitable. Very few casinos will lose and that is because of a low capital perhaps. Roulette for example having 18 red, 18 black and 1 green. Betting a basic Martingale strategy on one colour and doubling up has a 48.64% win rate. This is also basically the house edge for this strategy (1.35%) - the advantage the "strategy" has over us. In the long run, the game will win. This is also done by capping the bet amount, so even if you had an infinite amount to bet, the casino restricts it and you would lose at some point, according to the probabilities. Roulette house edge usually ranges from 2.7% to 5% if I'm not wrong. The calculation for the house edge on roulette is complicated I think but on something like Dice it's pretty simple like others have said too. The house edge is a really interesting topic, and I hope what I said means something.
Shaniqua Posted May 26, 2019 #9 Posted May 26, 2019 there are two ways to look at it i think... one is for every 100 games played on a 50/50 game... 1 time out of the 100, stake will win no matter if you rolled right side or not.. or the right way or more scientific way of looking at it is... stake takes 1% of every game you play (of total wager amount)
Burgerwcheese Posted May 26, 2019 #10 Posted May 26, 2019 The house edge in blackjack is around 0.5% if you use basic strategy. Of course, that 0.5% can go up or down based on your skill level. Most players are bad enough at blackjack basic strategy to give up another 1.5% or so to the house, making the house edge for the casino 2%. This also goes for other skill games, this is why people say the listed house edges are incorrect. The House Edge assists the gambling provider as a commercial business to cover its costs of providing the game, paying for the staff, maintaining the casino or club etc. It also helps to turn the business a profit. Any profit the business makes from gambling comes from the money the gamblers pay into the game, whether it’s a poker machine, Keno, Blackjack or other game. An easy way to think about it is with a roulette wheel. On a single zero roulette wheel there are 36 numbers plus the green zero. When the wheel is spinning the ball can stop on any one of the 36 numbers or the zero: 37 possible stops. Therefore the mathematical odds of you choosing one of those possible stops is 1 in 37. But… the house pay outs are set at 35 to 1. So over time, the house will never lose. They have a 2.7% house edge. The house edge is in every form of commercial gambling and means that the more you play over time, the more you will lose. You may get lucky in the short term and be ahead but if you keep playing, eventually you will lose. It’s important that people don’t think that they can win, because you can’t win in gambling. You can win for a little while but you can’t win in the long run.
Sefan Posted May 26, 2019 #11 Posted May 26, 2019 8 minutes ago, Burgerwcheese said: The house edge in blackjack is around 0.5% if you use basic strategy. Of course, that 0.5% can go up or down based on your skill level. Most players are bad enough at blackjack basic strategy to give up another 1.5% or so to the house, making the house edge for the casino 2%. This also goes for other skill games, this is why people say the listed house edges are incorrect. The House Edge assists the gambling provider as a commercial business to cover its costs of providing the game, paying for the staff, maintaining the casino or club etc. It also helps to turn the business a profit. Any profit the business makes from gambling comes from the money the gamblers pay into the game, whether it’s a poker machine, Keno, Blackjack or other game. An easy way to think about it is with a roulette wheel. On a single zero roulette wheel there are 36 numbers plus the green zero. When the wheel is spinning the ball can stop on any one of the 36 numbers or the zero: 37 possible stops. Therefore the mathematical odds of you choosing one of those possible stops is 1 in 37. But… the house pay outs are set at 35 to 1. So over time, the house will never lose. They have a 2.7% house edge. The house edge is in every form of commercial gambling and means that the more you play over time, the more you will lose. You may get lucky in the short term and be ahead but if you keep playing, eventually you will lose. It’s important that people don’t think that they can win, because you can’t win in gambling. You can win for a little while but you can’t win in the long run. nice explanation really clarified it for me
barbaris Posted May 26, 2019 #12 Posted May 26, 2019 This is the percentage of the casino at which it will not lose. The remaining 99% is your luck and ability to win.
polor12 Posted May 26, 2019 #13 Posted May 26, 2019 the 1% means there is advantage the house have.. pretty much to justify certain games have a payout or a number that people dont understand why its doing there., Limbo .99 and the full house of DP pays out 1.5x.. there some betting ways from roulette that was not added.. 4 of 2 blocks bets.. where you can bet by putting on the line between numbers.. that why i think they have 2.5 percent house edge.. it should be called the house advantage... because it seems they have all the advantage..
bmg Posted May 29, 2019 #14 Posted May 29, 2019 On 5/25/2019 at 8:25 PM, ceastem said: It just meant that there is 1% where you have no chance to win. you can notice that the maximum percentage you can win in dice is 99% and the multiplier is already at 1.00 so you win nothing and a chance to lose everything. guess what the 1% is? Thank you for the info . I was never %100 certain I knew what it was so thank you for cleaning that up.
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