House advantage

As a bank advantage, Eng. Edge (Eng. advantage, advantage ), house edge, shortly House or percentage is referred to in games the player's expected loss with respect to its use.

Example

If a player about the amount of 100 € at Roulette on a group of four numbers,

• He receives with probability 4/37 a profit of 800 €, the profit ratio based on a set of four numbers 8: 1,
• And he loses with probability 33/37 its use of 100 €.

Therefore, the player's expected profit is 4/37 · 800 33/37 * ( -100 ) = € -2.70 -2.70 % or its use.

The expected loss of the player or the expected profit of the banker is thus 2.70 % of the player's bet.

In the U.S. the term of the percentage is sometimes also interpreted as meaning that the expected profit of the banker is related to the use of the banker. In the preceding example, then gives the much lower value of 0.3375 %, since the gain of 2.70 € from the higher to much use of the banker, namely € 800 is divided.

Problems in the definition of

• For some gambling games such as baccarat, it is possible that a game is a draw. In general draw matches in the calculation of the banking advantage not taken into account ( see, for example Baccarat - Punto Banco ) - but this is not always the case in more complex games like blackjack is apart to avoid additional definitional problems.
• In some games of chance, such as blackjack, but also Red Dog, Caribbean Stud, Easy Poker, the player may change its use under certain circumstances during the game. For information regarding the bank benefit is therefore important to note that the expected profit of the casino is based on the use at the beginning of the game or on the expected total use of Player: Starts about a player has a hand of blackjack with a stake of € 100, so is its expected use in this game, due to the possibility of splitting or doubling in optimal play € 111.67 ( see Article blackjack ).
• In games of chance, which leave the player in the course of a single game certain choices, is a presumption in determining the bank benefit from it that the player always makes the optimal in the sense of probability theory decision.

Relationship between dividend payout ratio and house edge

While it is common for such as roulette, baccarat or blackjack gambling, specify the bank advantage, it is common with lotteries and sports betting to calculate the payout ratios. These two terms depend very closely related, payout ratio plus house edge always result in 100%; is about the payout ratio of 98%, so the house edge is 2%.

• Game concept
• Roulette