Confused about 1% Dice edge

[dylannonsense]

So I understand that dice has a 1% edge but I'm confused about how this 1% is expressed. 

When you set the win rate to the maximum 98%, you have a payout multiple of 1.0102x. Does this mean  the house has a 0.9898% edge?

When you set the win rate to the minimum 1%, you have a payout multiple of 99x. Does this mean  the house has no edge at all? 

Or is the edge being calculated in the background and is invisible to the odds? 

[GKD09]

The payout is calculated based on the odds of winning. Say for example a 50% or half-chance odds they are supposed to give you a payout of 2x.

Actual payout = 1/probability = 1/(1/2) = 1/50% or simply 1/0.5

Which is 2. But since they need to add a house edge to win in the long run, stake has added a 1% house edge. 

So when you are playing at 50%, stake only gives you a payout of 1.98x. So the house edge can be calculated by this.

House edge = (Difference in payouts)/Actual payout 
                       = (2-1.98)/2 = 0.01 or 1%

So for your example at 1% we are actually supposed to get a 100x (1/1%) but we only get 99x. So (100-99)/100 is the 1% house edge.

You can also calculate the house edge by the difference in probability at the same payout. Using your example at 1.0102x. The actual probability at that payout is 1/1.0102 which is 0.98990299 or 98.990299%. But stake has excluded some numbers so that they can achieve this. 

House edge = (Difference in probability)/Actual prob.
                       = (0.98990299 - 0.98) / 0.98990299
                       = 0.0100040005
                      ~= 1%

[dylannonsense]

8 hours ago, GKD09 said:

The payout is calculated based on the odds of winning. Say for example a 50% or half-chance odds they are supposed to give you a payout of 2x.

Actual payout = 1/probability = 1/(1/2) = 1/50% or simply 1/0.5

Which is 2. But since they need to add a house edge to win in the long run, stake has added a 1% house edge. 

So when you are playing at 50%, stake only gives you a payout of 1.98x. So the house edge can be calculated by this.

House edge = (Difference in payouts)/Actual payout 
                       = (2-1.98)/2 = 0.01 or 1%

So for your example at 1% we are actually supposed to get a 100x (1/1%) but we only get 99x. So (100-99)/100 is the 1% house edge.

You can also calculate the house edge by the difference in probability at the same payout. Using your example at 1.0102x. The actual probability at that payout is 1/1.0102 which is 0.98990299 or 98.990299%. But stake has excluded some numbers so that they can achieve this. 

House edge = (Difference in probability)/Actual prob.
                       = (0.98990299 - 0.98) / 0.98990299
                       = 0.0100040005
                      ~= 1%

Thank you, so in the end, the edge is already expressed in the odds/payout rate we see and there is nothing additional going on in the background? 

[RichardCranium]

In my opinion, if you have used a calculator or worked out the % of losing to what you're multi/wagering is then you need to add the house %1 edge ontop of whatever u worked out the % of loss you would have gotten from what you were going to do...

 

So a 0.003% of loss is now 1.003%

Im probably wrong but eh, that 1% is savage.

 

[dylannonsense]

40 minutes ago, RichardCranium said:

Im probably wrong but eh, that 1% is savage.

 

1% is relatively low. 

[RichardCranium]

1% is low compared to the house edge in other games and places you could gamble and stake has from my understanding the lowest house edge cmpared to most places across the board but %1 is fucking HUGE when it comes to a game designed to beat you and dont let that confuse you...I might be just a random on the internet but heed the words...1% is still massively favoring the house.