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House Edge vs. Return to Player - What is the Difference?
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What is House Edge
House edge indicates what portion of each player's bets goes into casinos' pockets. The house edge value varies from game to game, is mathematically deductible and must be listed in the rules of every single game.
It is better for a player if the house edge is the lowest or even negative, which would indicate that it is the player who has an edge over the casino.
The standard house edge of online casinos is usually between 1 and 5 %, at land-based casinos, the house edge often reaches tens of percent. Illegal games that are not licensed, and therefore violate the law by their very existence, set up an enormous house edge in their games, which can be around 50%.
What is Return to Player?
Return to Player (RTP) indicates how much of each bet the player will get back in the long run. If the return to player is 95%, then the player receives a 95 pence from each pound they bet.
The higher the return on the player, the better it is for the player to play the game. If a player has the edge in a game, the return to player value exceeds 100%.
The difference between house edge and return to player
The return to player is in fact only a different approach to house edge, where we look at the casino's advantage, but what part of the bet the player gets back.
If we know the return of the player, we also calculate the house edge:
- 100 - player return = house edge
Similarly, if we know the house edge, we also calculate Return to Player:
- 100 - house edge = return to player
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