Casino Gambling Rules – The House Edge

The Xgtiger Casino house edge is the best indicator for deciding which casino games offer the best odds for gamblers. To understand the house edge, we must look at other common gambling terms such as payout ratio and game odds. All of these are combined to determine the edge and hold of the house.

What do these terms mean? These may seem confusing to the newcomer, so we describe each one below with examples of how they are calculated.

Payout

The payout ratio, often called the payout, refers to the amount of money relative to your first bet that will be rewarded with a win. For example, the payout of a gambling event might be 5:1. A $1 winning bet will profit $5 with a total payout of $6.

The potential profit of any bet can be calculated from the payout ratio using the following formula:

Profit = [(a + b) x bet] – bet; where the payout ratio is a:b

Win Rate

The win rate is the same as the odds of winning and is usually reported as a fraction or percentage. For example, in craps, there are two dice rolled and 36 possible combinations. Six of these combinations will produce sevens, making there a 6/36 or 16.67% chance that betting on sevens will win.

*Note: the odds are a fixed mathematical certainty and do not change based on past results. Popular gambling theories such as the Gambler’s Fallacy suggest that expected outcomes that do not occur are more likely to occur in the future. That is not true; each turn is an independent event.

House Edge

The house edge is the casino’s advantage and will give you the best measure of the game’s overall odds. Payout and win rates are taken into account when determining the house edge. The easiest way to explain this is to show an example.

In single-zero roulette, there are 36 numbered slots on the wheel and one green slot, making a total of 37 slots. The green slot gives the casino an edge. The payout ratio is determined using the following formula:

36/n, where n = numbers that define a win.

For example, betting on numbers 1-12 means there are 12 possible winning numbers; n = 12. The payout is calculated by 36/12 = 3; the payout ratio is 3:1.

Next, you determine the expected return. The expected return is simply 36/37 but can be applied to every bet using the formula:

(n/37) x (payout) = average return, or (n/37) x (36/n) = average return.

If n is greater than 0 (remember, n = numbers that define a win), the average return is always less than 1, in this case, 36/37, or 0.973. This does not change any roulette bet, although it can be bet-specific in casino games such as craps. On some online casino sites and gambling websites, you may see this word, “We paid 97.3%!” This refers to the average return.

The houe egde is calculated by subtracting one from the average return. For example, in single-zero roulette, the house edge is 1 – 0.973 = 0.027 x 100% = 2.7%. This means that for every $100 bet on roulette, the casino keeps $2.70 on average.

Hold on

Hold, also known as percentage hold, is commonly confused with houe egde. The hold is the average percentage of the player’s money first brought to the table that the casino keeps. For example, even though the house edge is only 2.7% in single-zero roulette, the average hold is 12.8%.

A 12.8% hold means that if a player brings $100 to the table, the casino keeps $12.80. A 12.8% hold indicates that the player bet his total of $100 five times [100% – (100% – 2.7%)^5 = 12.8%]. The hold represents the actual profit for the casino and factors in the payout, odds, and house edge.

These terms can be confusing, but they clearly show how gambling sites or online casinos and land casinos have an advantage. We see a higher payout percentage with slots on some of the best online gambling sites due to lower overhead charges of operation. Table games, however, have fixed houe egde that can only be removed by what strategy to use. Please keep this in mind and always remember to gamble responsibly.

Conclusion

Are you an avid gaming fan and want to know how to bet on online casino games? At Xgtiger, you’ll get the latest information on this year’s best casino games and a variety of gaming options, all in one place.

To start your online gambling journey, all you need to do is create an account on the site, deposit funds and you’ll be ready to bet on the best and most anticipated casino games.

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