How Do Online Casinos Make Profit?

21 January 2021 4 minutes to read
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The online casino industry is huge and it continues to grow by the day. New casinos pop up all the time and the profits they make are enormous. Moreover, have you ever wondered how casinos make a profit? Do you know how the mathematics behind online casino profits work? In this article, we shed some light on how USA casinos online make their profits.

 

What Is House Edge?

House edge is one of the main concepts when it comes to casino profits. All casino games come with a different advantage to the house. It’s a percentage and it means how big of an edge the casino has with each bet. Furthermore, every bet you place for real money applies to the house edge. Statistically, you’re more likely to lose money than win money on every wager you make.

If you place a single bet on Red or Black in roulette, the house edge will be small. It’s almost a fair-chance game, in fact, if you place only one bet. The house edge will start to add over time. Think of it like this. If you’d have only a 48% chance of winning a coin flip. Would you want to bet just once or would you want to continue betting?

Online casinos profit every time someone places a bet on a casino game. Believe it or not online casinos make their profit from the game’s edge to the house. There are still players who believe that casinos online fix their games in their favor.

Casino sites that do fix their games are rogue operators – avoid them at all cost. Legitimate online casinos have no need to do that. All the bets are in their favor by design. So, why would they risk lawsuits and their reputation.

 

Online Casino Games

House edge is a major online casino topic these days. As a casino fan, you should always know what the house edges of the games you play are. When it comes to classic casino games their house edges vary from low to astonishingly high. Furthermore, it depends on the bets you make and the strategies you use. Just to give you an idea, let’s talk about the three most popular casino games of all time.

 

Table Games Offer The Best Return

In roulette, you can get low house edges in European-style roulette. For even money bets, the house edge can be as low as 1.35%. For straight number bets, the house edge can be 2.70%. If you play at American tables, though, the 2.70% options turn into 5.26% ones!

In blackjack, it all depends on the decks and your decisions. The worst you can do is play at tables with reduced blackjack payouts. In baccarat, the three main bets are Player, Banker and Tie. Player bets come with a low house edge of 1.24%. Banker bets are even better with their house edge of 1.06%. If you move to Tie bets, though, you’ll get massive house edges between 4.85% and 14.4%!

As far as online slots are concerned, it’s a tad more difficult. Slots for real money have different house edges. In slot machine terminology, it’s the theoretical RTP (return to player) of an online slots. That’s how much money the casino returns to the player on average. The industry average is 96%, which translates into a house edge of 4%.

The RTPs appear in the paytables of slot machines online. If they aren’t there or if you are unsure; contact the casino’s customer support. Normally they have all the information about the game on hand.

 

What You Can Do As Casino Player?

Now that you know how online casinos make a profit. As a player, you don’t have much of a choice. You simply have to go against the house edge and hope for the best. You can improve your winning chances by using various casino game strategies and good bankroll management. The house edge will always be against you.

Furthermore, it is impossible to make a profit over the long term. The good news is that this doesn’t mean that you can’t win at all. Play casino games like blackjack, slots with high RTPs and video poker.

If you use an optimal blackjack strategy you can reduce the house edge to -0.57%! Moreover, video poker variants like Jacks of Better offers a edge to the house of less than 2%. While slot games like The Hive have a house edge of less than 3%. If you won a tidy sum playing these games. Withdraw the money you’ve won. And, enjoy the fact that you’ve managed to beat the online casino.

If you decide to continue playing. You have to understand that the odds won’t be on your side; no matter what you do. The more you play, the higher the chances of losing all your profits. If you hit a jackpot, be glad that it happened. Cash out before you lose it all! It sucks if you won $10,000 playing slots and you played all of it back into the casino. Never do that!

 

Final Word

Online casinos make money because of the house edge of each casino game. Even though the edge is low in many casino games, it’s important that you play the right game. Every bet in theory is profitable for the online casino.

It’s simple math; the more bets players place, the more the online casino makes. If you want to take advantage of that as a player, there’s only one thing you can do. If you get a good jackpot or a winning streak, quit while you’re ahead.

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