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Roulette House Edge Guide | LeoVegas

Roulette House Edge

In roulette, the house edge decides the casino’s long-term advantage over you. This influences every bet you make, impacting your odds and potential winnings. By understanding the house edge across different variations of roulette, you can approach games with a better level of understanding and improve your chances of success.

Table of Contents:

Understanding the Basics of House Edge

House edge is effectively one of the fundamental concepts of gambling. It represents the mathematical advantage that a casino has over players. This is generally shown as a percentage which indicates the average amount of each bet that the casino expects to claim over some time. For example, a house edge of 5% indicates that for every $100 wagered, the casino will make a profit of $5 (5% of $100).

The whole point of house edge is to make sure casinos remain profitable over time, despite the potential short-term volatility of a game’s outcome. This figure is built into the design of casino games, making sure that the odds of winning are always slightly lower than the game’s true odds. By following this structure, casinos create a system that ensures, on average, they make money from player bets.

How House Edge is Calculated

To determine the house edge, you must calculate the difference between the true odds of a game and the actual payout odds the casino offers.

Let’s take European Roulette as an example. There are 37 pockets, so the true odds of winning on a single number bet are 36 to one, while the payout may be limited to 35 to one. In that case, the house edge is calculated by dividing the difference between the true odds and payout, by the true odds and then multiplying the result by 100. In this case, we get a house edge of around 2.7%.

The Importance of House Edge in Casino Games

It's crucial for players to fully understand the implications of the house edge. The figure gives you an insight into your chances of winning and helps you make more informed decisions regarding which games to play and how to best manage your bankroll. Games with a lower house edge, such as blackjack, give you better odds, while slot machines have a higher rate and come with a bigger risk.

You’ll need to keep in mind that the house edge directly affects your odds, by reducing the potential returns from each bet. Effectively, the higher the house edge, the less you are likely to win in the long run. There are a few strategies that can help minimize the house edge in particular games but rest assured, the casino will always have a key advantage.

For casinos, the house edge serves as the backbone of their profitability. They maintain a consistent edge across all games to make sure they generate substantial revenue over time. Even if a player manages a huge win in the short term, the house edge will make sure that across all the bets being placed by players, the casino will still cover costs and turn a profit.

House Edge in Different Variants of Roulette

As with all other casino games, roulette and its many variants come with their own house edge. This can vary significantly based on the number of pockets on the roulette wheel, as well as the specific rules of the roulette variation in question. That’s why there are different odds across European, American, and French versions of roulette.

European Roulette House Edge

The most popular roulette variant is European Roulette, which features a 37-pocket wheel with numbers from one to 36 and a single zero. The house edge for this variation is based on the difference between the actual odds of winning and the payout odds offered by the casino. The biggest difference here is the single zero which gives European Roulette a house edge of around 2.7%.

That figure is calculated based on a straight-up bet on a single number. The true odds of winning on this bet are one in 36, however, the casino only pays out one to 35. This gives us the 2.7% figure, which means that for every $100 bet on single numbers, the casino figures it will make $2.70.

American Roulette House Edge

The most notable difference between American and European roulette is the addition of the double zero pocket, which increases the total number of pockets to 38. This has a direct impact on the house edge which increases to 5.26% - nearly double the value of European Roulette. This is one of the main reasons why players prefer playing the European version.

In this variation, a straight-up bet on a single number has odds of 38 to one, but the payout remains fixed at 35 to one. This creates a house edge of around 5.26%, meaning that for every $100 a player bets, the casino makes a profit of $5.26.

French Roulette House Edge

French Roulette is much closer to European Roulette with 37 pockets, but it works with a couple of unique rules that can take the house edge further down.

The first is La Partage. This French bet means that when you make an even-money bet like red/black or odd/even, and the ball lands on zero, you will only lose half your bet. This brings the house edge down to 1.35%. The next bet is En Prison, a French roulette rule that applies when the ball lands on zero after an even-money bet. In this case, your original bet is "locked in" for the next spin instead of being lost. If your bet wins on the next spin, you recover your original stake; if it loses, you forfeit the bet. This can also reduce the house edge to 1.35%.

The additional rules of En Prison and La Partage significantly reduce the house edge when even-money bets are involved, making it the most favourable roulette variant. Although the house edge for all other bets remains 2.7%, even-money bets give you a strategic advantage with their lower figure.

Factors Influencing the Roulette House Edge

Several factors affect the house edge in roulette, especially when taking into consideration the number of zeros on a wheel, as well as the type of bets you make. These elements have a big role in shaping the casino’s advantage and your odds of winning.

Number of Zeros on the Wheel

The number of zeros on a roulette wheel is the biggest factor in the game’s house edge. The European and French roulette wheels have a single zero, whereas the American roulette wheel comes with an additional double zero pocket. This increases the total number of pockets from the standard 37 to 38.

This change, albeit small, has a substantial impact on the house edge, with the European and French versions having 2.7%, while the American variation spikes to a higher 5.26%. This is mainly because by adding another pocket, the American version of the game has more ways for you to lose.

Bet Type and House Edge

While zeroes have a huge impact on the overall house edge, the type of bet you place also plays a big role. Roulette bets are split into inside and outside bets which come with different odds and payouts.

Inside bets are made on specific numbers and small groups of numbers that sit within the main section of the betting table. This includes straight bets and split bets. They generally come with higher payouts but an equally higher risk.

On the other hand, outside bets cover larger groups of numbers which are placed outside the numbered grid on the roulette table. This includes red/black, odd/even and high/low wagers. Although their payouts may be smaller, so is the risk associated with them. On the roulette betting table, they are on the safer side of the action. Although the house edge for these bets remains consistent for the American and European variations, in French Roulette, they can take the house edge down to 1.35%.

By understanding how these different elements can influence the house edge in a game of roulette,you're bound to make better betting decisions, pick a variation that works for your betting style, and use an effective risk-management strategy when it comes time to play.

Frequently Asked Questions (FAQs)

What is the best bet to place in roulette to minimize the house edge?

Outside bets are the best way to minimize house edge in roulette.

Can I overcome the house edge in roulette with a betting system?

You can minimize the house edge in roulette with betting systems and strategies, but you can never eliminate it.

Why does the house always win in the long run?

The house always wins in the long run because of the house edge, a percentage figure which guarantees the casino turns a profit over time from player bets.

Which roulette variant offers the lowest house edge?

French Roulette technically offers the lowest house edge through its outside bets which have a rate of 1.35%.

How does the house edge affect my chances of winning in the short term?

House edge has a very minor effect on your chances of winning in the short term and has a much bigger effect when playing longer sessions.

What is the difference between European, American, and French Roulette in terms of house edge?

European Roulette has a house edge of 2.7%, American Roulette has a higher 5.26%, and the French version has a 2.7% rate too, which plummets to 1.35% when placing outside bets.

How to calculate house edge in roulette?

To calculate the house edge in roulette, you need to calculate the difference between the true odds of a game and the actual payout odds the casino offers.

What is the house edge in roulette vs blackjack?

Blackjack has a much lower house edge - just 1% - when compared to 5.26% and 2.7% in roulette.