In the internet age, it seems gaming and gambling are everywhere, but in this highly-regulated industry, just how does an online casino make money?
Governments the world over are keen to promote safe gaming, and as such, the industry is now safer and more responsible than ever. Nonetheless, having a little knowledge of how gaming works is no bad thing. After all, gaming is still a business like any other and companies have fixed costs that need to be met, paid mostly by the money invested by players.
The House Edge
Every game you play (either online or offline) has some form of “House Edge”, including everything from national lotteries right down to a simple game of blackjack in a casino. The House Edge is a basic calculation made by the operating company to determine the profit it will make from each game. It is the difference between the true odds of the conditions for a win and the actual odds used to determine whether a win will be paid. It essentially means the establishment always pays out slightly less than the natural odds of winning — say, 5% less.
5% might not sound like a lot but, when scaled up against the number of players, the figures get considerably more impressive. Of course, these ‘profits’ still need to be divvied out amongst the various operating costs but this is essentially where gambling operators make the majority of their money.
The concept of the House Edge is explained best with a real-world example — let’s say, a coin toss. If you were to bet on both sides in a game of coin toss (i.e. on both heads and tails), you would have a 2:1 chance of winning the bet since the coin will always land on one of two sides. So, if you bet $1 each time, you should still get your $2 back.
However, when you introduce the House Edge into the equation, things change slightly. The return drops by 5% — i.e. in this case, $0.10 — which is the money collected by the operator to cover its costs, pay wages, etc.
The same equation applies to a roulette table. Despite there being 37 possible winning numbers, the maximum payout will be 35:1 on a single number coming in. This basic math is what allows gambling institutions to stay in business.
Some games have considerably better odds than others
If you’re playing at a casino (either online or offline), four games offer the best odds. These include Jacks, Blackjack, Craps and Baccarat. In general, if you were to place one hundred $1 bets in these games, the odds state that you should only have total losses of around $1.
Of course, life rarely follows numbers and your real losses may end up considerably more but these games statistically offer the best security for your money.
The safest gaming of all
With its low stakes and high social aspects, bingo is considered by far the safest form of gaming and also offers the least risk of addiction. As bingo is a game of luck, players are far less likely to fall into the trap of chasing losses, and since the tickets are low cost in the first place, any losses incurred remain equally low (even if a player buys multiple game cards).
Bingo is popular all around the world, but particularly so in the UK where you’ll find directories listing the best UK bingo sites. These days, most online operators also offer free taster and trial sessions, allowing you to hone your skills with zero risk. Bingo is also highly regulated in the UK with reputable companies that advertise their House Edge, giving you peace of mind on your odds.
All forms of gambling have an inherent risk attached, so it’s essential always to gamble responsibly. Keep gaming fun by following the simple rule of only betting what you can afford to lose and always manage your investments responsibly.
