More House Edge and Payback Percentage Questions

Will I always lose more money playing games with a low payback percentage / high house edge?

Not all the time. There are several reasons why.

First, there is what we call standard deviation. The standard deviation of a game is a plus or minus difference from the mathematical average of wins/losses. It is when you get a result that is not exactly the theoretical expected return. For instance, a coin-toss has a 50/50 probability either way, right? But when you run a coin-toss trial a hundred times, you will probably not get an exact 50/50 figure. You are more likely to get about 45/55 either way. It's like that in all gambling. There will be days when you win or lose more than the expected figure. That is standard deviation.

Second, if you know how, you can limit your losses in a low payback game as if you were playing a game with higher payback. For example, you can bet small and pause between spins while playing slots to slow down play. On the other hand, even a high payback percentage can't save you if you play foolishly. In blackjack, you can lower the house edge to 0.5% with basic strategy, but very weak play can increase it to 6% or higher.

Third, is how much you wager. Betting a $0.25 per spin on a slot machine for an hour would incur fewer losses than say, a $100 bet per hand in baccarat within the same span of time.

Fourth, the speed of the game is also important. Playing head-to-head against the dealer in casino war will cost more than if it's a full table.

Is there no way to ever beat the casinos?

Yes, but only in special cases. Exceptions to the house edge rule are break-even and positive-expectation games, i.e. games with a payback percentage of 100% or higher. A payback rate of 100% means you can break even after a long time; over 100% means you can expect to turn a profit. However to beat a casino in a positive expectation game, you need to master a perfect strategy or technique$ suitable for that game.

Okay! Now I want to play. What games have the smallest house edge?

These games are excellent choices due to their low house edge:

- Blackjack - Craps - Video Poker - Baccarat

Please note that basic strategy and/or correct betting choices must be made to enjoy the low house edge of these games.

Further, other games such as roulette sometimes have special rules that lower the house edge. Games like slots and keno have often have dazzling jackpots that make up for the high house edge.