Basics of Gambling: What is House Edge, and How Does It Differ From Return to Player?

The game for real money has been around for centuries and remains a popular way to entertain people. With the advent of online gambling, it’s easier than ever to find a casino or betting site and get started with your favourite Microgaming Jackpot games. But before you dive into the world of iGaming, it’s important to understand some basic concepts like house edge and return to player. Let’s break down what these two terms mean and how they differ.

Understanding House Edge and Return to Player in Gambling

Why is it so significant to realize the concept of house edge and return to player (RTP)? Playing any casino game entails a risk or an advantage for either side. House edge is the mathematical advantage that the casino has over players in any given gambling game, while RTP is the amount of money returned to bettors over time, expressed as a percentage. As a result, the understanding of the basics guarantees you a secure game.

To simplify this concept, let’s look at an example: A casino offers an online slot machine with a house edge of 5%. This means that the casino expects to make a profit of $5 for every $100 wagered. On the other hand, the slot machine has an RTP of 95%, which means that $95 is paid out to players in winnings for every $100 wagered. This means that, over time, the casino will make $5 profit for every $100 wagered and players will win $95.

As a rule of thumb, it’s important to remember that the house edge is always in favour of the casino and the RTP is always in favour of the player. Knowing this information can help you make more informed decisions when deciding which games to play and how much to bet.

What is House Edge?

House edge is the mathematical advantage that a casino or betting institution holds over its players in any given game. It is also known as the “casino advantage” or “house advantage”. Basically, the house edge represents the percentage of each bet that the betting house keeps on average over time from all bets placed on a certain game. This means that regardless of whether you are playing poker or roulette, you will always have an inherent disadvantage against the house due to their built-in mathematical edge. However, this doesn’t mean that you can’t win – it just means that it’s more likely for the house to come out ahead in the long run.

What is Return To Player (RTP)?

Return To Player (or RTP) represents an estimate of how much money a player can expect to get back from their total wagers over time while playing a certain game or using a certain service at an online casino or betting site. It is expressed as a percentage which typically ranges from 85% up to 99%, depending on the type of online casino with bonus being played. For example, if you place $100 worth of bets on a slot machine with an RTP rate of 95%, then you are expected to get back 95% ($95) of your total wagers over time – which means that in theory, you would have only lost $5 eventually by playing this slot machine. It’s important to note that these numbers are theoretical; they do not guarantee wins or losses but are simply used as estimates when evaluating games or services offered by casinos and betting sites.

Recommendations for Newcomers in Gambling

If you are new to gambling, it’s essential to understand all the relevant concepts and terms, such as house edge and RTP, before you get started. This will help make sure that you understand the risks involved in any game and can make more informed decisions when picking the casino or betting site you want to use. It’s also critical to remember that playing should always be done in moderation and with control. When playing any game, you should always set a budget and stick to it – don’t ever exceed this amount. Finally, remember that gambling is supposed to be fun, so make sure that you enjoy the experience!


Understanding house edge and return-to-player (RTP) rates can help gamblers make more informed decisions about which games they choose to play at online casinos and betting sites. Knowing how these two concepts work can help gamblers manage their bankrolls more effectively and potentially improve their chances for success when gambling online. So if you’re new to iGaming, take some time to familiarize yourself with the house edge and RTP before taking the plunge! Good luck!