Understanding RTP And House Edge


A lot of confusion tends to surface when there is a discussion surrounding the difference between RTP and house edge concepts. While some players may choose to not want to concern themselves with such terms, it would be in their best interests to have an understanding of what these two concepts mean since they do affect the financial aspect of any player’s online gambling experience as a whole. 

RTP and house edge relate to classic games and video slots, and both these concepts are key to important parameters that form an operator, whether it’s the best online casino within the virtual space or the worst. So, in this article, we’ve put together an informative piece that will provide you with all the fundamental knowledge you need to understand RTP and house edge. 

“The House Always Wins”

“The house always wins” is a statement that most, if not all, gamblers have heard before somewhere along their gambling experience timeline. Generally speaking, the statement refers to the long-term success that casinos are still able to maintain despite them still rewarding players with payouts, big and small, in the short term. 

Players having wins is something that has to happen often otherwise players won’t invest their money in an operator that offers low payouts. So many operators issue payouts to players often. While you may think that this may run at the expense of the operator itself, the casino has already implemented strategies in its games to make sure that the operator is always the one to have gained the most revenue-wise. 

In a nutshell, the concept behind the house always winning boils down to the following points:

  • In the long run, all casino games will cause losses to players
  • Players are limited to scoring wins in the short term
  • RTP and house edge are the two concepts that determine how much a player will win and lose

How RTP And House Edge Are Measured

House edges and RTPs are not random abstracts. They can be measured and presented in the form of percentages since all slots and table games operate within a specific computer program. It’s with this program that’s been set by software providers that your chances to win at a game will be determined. 

For an operator to obtain a gambling license, it has to disclose the RTP and house edge percentage levels to all its casino games as a form of fair play and transparency. It’s then up to the license commission to ensure that all this information that’s presented to the public is true. Therefore, each time you come across a percentage right next to a casino game, it’s likely that you’ll be looking at an RTP or house edge level. So, when you’re looking to determine how much you’re going to lose in the long run, you can use this percentage figure. 

RTP Vs House Edge

House edge and RTP are a representation of the concept, “The house always wins.” They are representing the same information, however, the only difference between them comes in when you’re looking at how they are calculated. 

It’s pretty straightforward when we look at how house edge is calculated because if an operator claims to have a house edge of 2.7%, it means that the player will lose 2.7% on average to each bet that’s made. Practically speaking, when a player places a bet, they are likely to either make a win or lose the entire bet, however, after placing millions of bets, the average loss for the player would be 2.7%. 

With RTP, on the other hand, this percentage level represents how much of a player’s bet will be returned to them on average. When you compare it to house edge, the RTP is calculated in reverse order because if the house edge is set to be 2.7%, then the game’s RTP will be 97.3%. The one is concerning the operator, while the other one is concerning the player. 

Casino Games With The Best House Edge Or RTP

If you’re looking for casino games with the best percentage levels for players to potentially make regular wins, you can look into:

  • Craps
  • Blackjack
  • Baccarat
  • Roulette
  • Slots


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