How Casinos Earn From Your Bets

Posted by Baker | Games | Tuesday 2 February 2010 9:57 am

Most casino games are games of odds. The draw results are based on possibilities. Hypothetically, casino and the players should have equal chances of winning but most of you must be aware that casinos are making more money that majority of their players. Most of you must be asking yourself what makes a casino a long term winner. How they get the money from their players? According to experts, the main answer is dependent on 3 keys and these are house edge, maximum limit and psychology.

The house edge factor helps casinos earn money through a mathematical formula approach. This is one of the numerous advantages they have over their players. They are also able to calculate their expected revenues through this house edge factor. The higher the house edge value in a casino game, the more money will go the casino as their earning. One perfect example is Sic Bo Big/small house edge of 2, 7 % which means that later on the casino will win the 2.78% of the money bet on the Big/small in Sic Bo game. If you play a game with house edge of 5% vs. 2.5, this simply means that you will lose 2 xs as fast as in the 2nd game.

You may find it complicated since you are not working in a casino but this is how they compute their earning. It only shows why casinos want to set a maximum limit in a game. This ensures that martingale techniques don’t work even if you have sufficient fund to double your wagering after every loss.