Many of us enjoy playing card games or online slots. However, very few ever stop to think about the numbers behind the games they’re playing.
The reason why this is important is because it can help us decide which online slots to play at Betway, or which table to go to when entering a casino.
The House Edge
The house edge is key to how casinos stay profitable. There’s no need to deny that they have an edge. It represents the average amount a casino expects to make from each game. Ultimately, it’s the difference between the actual odds of winning and the odds the casino offers when a player wins. So, in American Roulette, the house edge is 5.26%. So, for every $1 million wagered, the casino expects to earn $52,600. This edge changes depending on the number of zeros present at the roulette table.
The Role of Probability
In American Roulette, the odds of winning a bet on a single number are 1 in 38, which explains the 5.26% house edge. The slot machines used at Betway use more advanced probability models, relying on Random Number Generators (RNGs) to ensure each spin is random. These systems assign symbols to virtual stops, creating thousands of possible combinations.
So, for online slots, this is known as Return to Player (RTP). It may be around 97% for online slots, although some websites have them as low as 90% – particularly in land-based casinos.
Expected Value
Expected value (EV) is worth knowing. It’s calculated by multiplying each outcome by its probability and then adding them up. You may be thinking that this is the same as the house edge, and you’re right, although it’s reversed because it’s focusing on the player. However, EV is even more important when it comes to sports betting, as you’re constantly trying to increase your EV and can use market pricing as a way to understand the true probability of events happening. In casinos, it’s actually an easier number to figure out because it’s provided (the RTP, for example).
Variance and Volatility
Variance and volatility are essentially how much a player’s results differ from the expected value in the short term. Of course, in the long term, the EV or RTP are true. In theory, they’re precise. In reality, from moment to moment, you may be experiencing different results.
Essentially, high variance games tend to be played by those that want to win big (slots) compared to low variance games where players want to play for longer (Blackjack). The standard deviation is how we can measure variance, but you don’t need to know the formula – just knowing the terms is enough.
Final Word
Casino game designers are constantly trying to strike a balance between risk and reward to create more exciting games. While the house wins in the end overall, individual players have their own experiences from moment to moment. Some enjoy the games themselves (many slots games have storylines and mechanics), some enjoy strategy and decision–making, while others play for the thrill of a high-variance jackpot.