Define house edge and explain how it differs between table games and slot machines.

Define house edge and explain how it differs between table games and slot machines.

• A. An overall percentage of losses experienced by the house per hour.
• B. The casino's built-in mathematical advantage over players; for table games it comes from rules and payout odds; for slots it comes from programmed RTP and payout schedules.
• C. The house edge is the average payout percentage across all games.
• D. The maximum bet allowed on a game.

Answer: (C)

The main idea is that the house edge is the casino’s built-in mathematical advantage on a game, expressed as a percentage of the stake that the casino expects to keep over the long run. For table games, that edge comes from the rules and payout odds—some bets have odds that favor the house, so the expected loss to the player grows with each wager. For slot machines, the edge comes from the programmed return to player (RTP) and the payout schedule; the RTP represents the portion of money returned to players over time, and it’s typically less than 100%, leaving the casino with the edge. In short, the house edge captures how much the house expects to keep on average, per unit bet, across many plays. The concept is not the same as an across-the-board “average payout percentage” across all games, and it isn’t about maximum bets or losses per hour.

The main idea is that the house edge is the casino’s built-in mathematical advantage on a game, expressed as a percentage of the stake that the casino expects to keep over the long run. For table games, that edge comes from the rules and payout odds—some bets have odds that favor the house, so the expected loss to the player grows with each wager. For slot machines, the edge comes from the programmed return to player (RTP) and the payout schedule; the RTP represents the portion of money returned to players over time, and it’s typically less than 100%, leaving the casino with the edge.

In short, the house edge captures how much the house expects to keep on average, per unit bet, across many plays. The concept is not the same as an across-the-board “average payout percentage” across all games, and it isn’t about maximum bets or losses per hour.