House Edge At Roulette

House edge or house advantage is the amount the player loses for any bet made, on average.

If a player bets on a single number of the roulette, there is a probability of 1⁄37 that the player wins 35 times the bet and a 36⁄37 chance that the player loses his bet (European Roulette).

The presence of the green pockets on the roulette wheel and on the roulette table is technically the only house edge.

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How to Calculate the Roulette House Edge

Outside Bets Edge

Outside bets will always lose when a single or double zero comes up. Zero is not red or black, is not even or odd etc. When the green zero comes up, the croupier wipes all the chips on the outside of the table.

Inside Bets Edge

The house also has an edge on inside bets because the payouts are always set at 35 to 1 when you mathematically have a 1 out of 37 (1 out of 38 for American roulette with 2 zeros) chance at winning a bet on a single number.

To demonstrate the roulette house edge, let's suppose you place chips and bet on every single number on the table, including the zero. Of course, you will win with one of your perfect bet, but you will win only 35 chips and invested 37 to cover the table.

European Roulette House Edge

If a player bets $1 on black, his chances of winning $1 is 18/37 since there are 18 black numbers out of 37.

However, his chance of losing $1 is 19/37. Therefore, the expected value of the house edge may be calculated as follows:

Expected Value = ($1)(18/37) + (−$1)(19/37)

Expected Value = 18/37 − 19/37

Expected Value = −1/37

Expected Value = −2.7%

Therefore, the house edge is 2.7%

American Roulette House Edge

If our player bets $1 on black, his chances of winning $1 is 18/38 since there are 18 black numbers out of 38.

However, his chance of losing $1 (i.e., winning −$1) is 20/38. Therefore, the expected value may be calculated:

Expected Value = (1)(18/38) + (−1)(20/38)

Expected Value = 18/38 − 20/38

Expected Value = − 2/38 = −1/19

Expected Value = −5.26%

Therefore, the house edge is 5.26%, very close to 2 times the house edge of the European roulette.

Other Roulette Bets House Edge

Check this Roulette Table of Odds. this table shows that all roulette house edge bets have the same expected value. The only exceptions are the five numbers bet where the house edge is considerably higher, 7.89% on an American wheel.

The casino Hold

Casino Hold
Casino Hold

The House edge is not the only way you lose your money at the Roulette. The house edge is only the little part of the roulette winnings. Suppose you enter the casino with a $100 and starts to play at the roulette.

Sometimes you win and sometimes you lose until you finish your $100. In fact, you lose only 2.7% more times than you win. However, you will, most likely, continue to play, until all your $100 will be lost.

The fact that the roulette house edge is only 2.7% means that the casino will allow you to play with your money more games before it consumes all of it.

The average "hold" for double zero American wheels is between 20–30% (according to the Casino Control Commission in Atlantic City), significantly more than the 5.26% house edge for American roulette.