Gambling Basics: What Is House Edge And How Is It Difference From RTP?


Gambling is a popular pastime for many people, but it can also be intimidating for newcomers. As you are entering the world of casino games from progressive jackpots to live poker, it is important to develop an understanding of the basic gambling concepts. Two of them are the house edge and the Return-to-Player (RTP). These are two terms that describe how much you can expect to win or lose over time playing a particular game. In this article, we will explain how the two concepts differ from one another, and why they are so important in gambling. By understanding these basics, new gamblers can make more informed decisions about which games to play and potentially increase their chances of winning!

What Is House Edge And How Does It Work In Gambling?

House edge is the mathematical advantage that a casino or bookmaker has over its players. It represents how likely it is that you will lose money in the long run when playing a particular game. It is calculated as a percentage of each bet. For example, a house edge of 5% means that for every $100 bet, the casino expects to win and keep $5. Even if you play at the best 2023 casinos, they will still have an advantage over you as a player.

Understanding RTP And Its Importance

RTP is the percentage of all the money wagered by players that the casino pays back. It is an important factor to consider when choosing which games to play: the higher the percentage, the better chances of winning in the long run.

Difference Between House Edge And RTP

Key Difference 1

House edge is the mathematical advantage that a casino has over its players, while RTP represents how much of the wagered money the gambling site pays back.

Key Difference 2

House edge is generally expressed as a percentage of each bet and RTP can be expressed as the same percentage in reverse: if the former is 3.5%, the latter will be 96.5%

Examples Of House Edge And RTP In Different Games

Different casino games have different house edges and RTPs. For example, in a game of American Roulette with a house edge of 5.2%, the casino will expect to keep about $5.20 for every $100 bet. On the other hand, a game of Blackjack may have an RTP of 99%, which means that players can expect to get back about $99 for every $100 bet.

Tips On Reducing Casino’s Advantage While Playing Online

Are there ways of minimizing your losses while playing online? Yes, and here are some effective tips that can help:

  • Take advantage of casino promotions as it is a great way to reduce the casino’s edge. Most casinos offer bonuses such as sign-up rewards, free spins, and cashback offers that can significantly boost your bankroll if used strategically.
  • Be aware of the RTP for different games so that you can choose those with the highest odds. If there are two similarly advantageous games, select the one with the best rules — lower deck counts, favorable splitting rules, and surrendering options where available.
  • Watch your bankroll and manage your losses responsibly by setting a budget and sticking to it. This will help avoid any costly mistakes resulting in bankruptcies and emotional downsides associated with gambling.


House edge and RTP are two important concepts for new gamblers to understand. By understanding them, new gamblers can make informed decisions about which games to play — and potentially increase their chances of winning! Furthermore, by using the right strategies and taking advantage of casino bonuses, newbies and experienced gamblers alike can increase their chances of winning even further.


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