Essentially the house edge is expressing the percentage of each bet the house will get to keep if you made that bet a million times. Let's use an example. Let's say the house edge is half of one percent like it is on most blackjack games. Although the house needs to win a lot in blackjack to get ahead, the differences between payout odds and probabilities of card play create the edge. In any gambling game, if there is a statistical 50-50 chance of a certain outcome, the house will pay less than 1:1 on the odds. This is in-line with blackjack standards and some of the best odds in the casino world. However, the 21+3 side bet comes with slightly different odds than you might expect. The house edge of the 21+3 bet is highly dependant on the number of decks in play. It can range between 7% to 2.7%, with a lot of different numbers in between.
Most players understand that the casino holds an advantage in blackjack. This advantage is known as the house advantage or house edge, and is usually under 1% in most blackjack games, provided players play using the optimal basic strategy under the rules of the game they're playing.
What does the house edge or advantage mean? It is an expression of how much of each unit wagered that the casino can expect to win on average. In other words, if the house advantage is 1% and you make bets of $100, you can expect the casino to win $1 for every bet you make over the long run. The results of doubling down, splits, blackjacks and everything else are included in that calculation.
Obviously, no bet in blackjack would cause you to lose exactly $1 on any given $100 bet. However, if you played tens of thousands of hands, or looked at the aggregated results of thousands of customers playing at the casino, you would see that the casino was coming out ahead by about that 1% margin. This assumes of course that everyone plays perfect basic strategy. The reality is that casinos make more than that because of players that don't know about basic strategy or prefer to gamble and bet with their gut when they are feeling lucky.
Blackjack Rules and the House Edge
Not surprisingly, different blackjack rules can have an impact on the size of the house edge. Some rules variations are beneficial to the player, while others increase the casino's advantage.
The following is a rundown of how different rule changes can affect the house advantage. Credit to The Wizard of Odds for their excellent analysis of how rules affect the casino's advantage. All rule changes and their effects are rated against a typical game with the following rules: a blackjack game with an eight deck shoe, where the dealer stands on all 17s, the player may double on any two cards, the player can double down after splitting, and the maximum number of hands the player may split to is four. This game would have a house edge of about 0.45%.
Remember, the lower the house edge the better. So negative values below are better for the player while positive values are better for the casino.
Promotional Rules
Many promotional rules are sometimes offered which can offer a lot of help to the player. For instance, if blackjacks pay 2-1, the house advantage is reduced by 2.27%. The following are some possible promotional rules variations that help the player, along with the amount by which they reduce the house edge:
- All blackjacks pay 2-1: -2.27%
- Triple down: -1.64%
- Five card Charlie: -1.46%
- 2-1 on suited blackjacks: -0.57%
- Six card Charlie: -0.16%
- Seven card Charlie: -0.01%
Using Fewer Decks
Most players have heard that blackjack games with fewer decks are friendly to players, but you might be surprised to find that the differences between these games are relatively small. In fact, the player will see almost no advantage unless only one or two decks are being used. Here's how reducing the number of decks affects the house advantage:
- Six Decks: -0.02%
- Five Decks: -0.03%
- Four Decks: -0.06%
- Two Decks: -0.19%
- One Deck: -0.48%
Changing How the Dealer Plays
One of the biggest rules variations between various casino blackjack games is whether the dealer stands on all 17s, or hits on soft 17s (an Ace with another card or cards that total up to 17). The common rule of standing on all 17s is actually better for the player.
- Dealer hits on soft 17: +0.22%
Player Options
Changing the options available to the player can also have an impact on the house edge. For instance, allowing surrender, the option to hand in your cards and get half your money back before the hand is played, reduces the house edge. Allowing this before the dealer checks for blackjack is known as early surrender, while allowing it only after the dealer has checked for blackjack (and not received one) is known as late surrender. This is the effect of some common player-friendly rule variations:
- Early surrender against an Ace: -0.39%
- Late surrender against an Ace: 0%
- Early surrender against a Ten: -0.24%
- Late surrender against a Ten: -0.07%
- Hit after splitting Aces: -0.19%
- Drawing a Ten after splitting Aces counts as blackjack: -0.19%
However, in most cases, casinos are more likely to eliminate player options rather than give players a helping hand. Here are some rule changes that limit what the player can do, and their associated increases in the house advantage.
- Players can only split to three hands: +0.01%
- Players can only split to two hands: +0.10%
- Players may double down only on 9, 10 or 11: +0.09%
- Players may not double down after splitting: +0.14%
- Players may not split aces: +0.18%
Blackjack Short Pays
Perhaps the worst rules variation that can be found at casinos these days is the short pay blackjack. Traditionally blackjacks will pay 3-2 on your wager, meaning our example $100 bet wins $150. However, some casinos, particularly in Las Vegas, are now dealing blackjack games that offer less than this. While it may seem like a minor change, even a small reduction in the odds paid for a blackjack can have a huge impact on the house edge, turning what looks like a good blackjack game into a poor one. You should be particularly wary of games advertising 'player friendly' rules such as single deck blackjack that only pay 6-5 or worse on a blackjack. Here's how short paying blackjacks increases the house edge:
- Blackjack Pays 7-5: +0.45%
- Blackjack Pays 6-5: +1.39%
- Blackjack Pays 1-1: +2.27%
Casino House Advantage Infographic
Related News
The house always wins. But when it comes to real money blackjack, the way the house edge works is quite a bit different than in other games.
Before I dive into the topic, let's make sure we're all on the same page on this one—there's not a game in existence where the house doesn't have an edge.
That funny phrase about how 'the house always wins' isn't just a clever casino spiel, it's reality. Play vegas slots for free. Casinos could not exist if they didn't have an edge. It just wouldn't make sense from a business standpoint.
Every game you play in a casino has a house edge. And how large that edge is depends on the rules the casino puts in place to some extent, and on you to some extent—your strategy, your tactics, your knowledge of the game, your decisions on how you play and why you make the plays that you do. All of these things affect how large the house's edge truly is.
So, how does that house edge work for blackjack, anyway? Let's take a look.
Start Thinking in Percentages
If you don't like math, you're probably not going to like gambling much. Or, at the very least, you're not going to be very good at it.
Now, as mentioned before, there are many factors that determine the house's edge, but you're looking at anything between 0.5% (if you're implementing a good blackjack strategy) and a few percent (or even more).
There's a reason so many gambling movies focus on blackjack. It's one of the games where you can potentially come out on top if you know what you're doing.
Why? Because the house edge only really means something for a statistically significant number of hands. What that little percentage up there means is that, on average, all players who are playing blackjack are going to lose about 0.5% of what they bet over time.
It's clear right away why this only means something across a large number of bets. If you bet $100 and lose a hand, there's no possible way to lose 50 cents. You either win some money, you lose some money, or you end up neutral.
But if you add up all the bets of all the players who are currently on the floor of a casino, and you start to measure the amount won and the amount lost over time, you'll see that the house is going to be up about 50 cents a hand on average.
Casinos are profitable for precisely this reason. The rules are set up so that, statistically and over time, house losses are negated by house wins, and a slight profit is made. Slots tend to have the worst odds (and thus, are most profitable for the house), but the house holds an edge in almost every game available to you. But there are rare exceptions.
What Determines the House Edge
There are a number of factors that specifically determine the house edge. First and foremost is strategy. If you don't know what you're doing and don't have a clear strategy, the house edge is going to be closer to 2% than 0.5%.
Other rules that can often feel completely strange or incalculable to new players also affect the house edge. For example, the amount you can win if you play a natural (blackjack—21) plays a big role in the house edge.
You'll find that some casinos will pay you 3:2 on a natural (which means, for example, that you get $15 on a $10 bet), but many other casinos have moved to paying 6:5 (you get $12 if you get blackjack on a $10 bet). That greatly increases the house edge, so avoid it if you can.
Other rules play a factor—does the dealer hit or stand on a soft 17? Can you double after a split? Can you double on any first two cards? How many hands can you re-split to? Can you re-split aces? Can you hit on re-split aces? What about when a dealer gets a blackjack—do you only lose your original bet? What's the surrender rule?
All of these seemingly insignificant rules play a huge role in the house's edge, but remember—the house is winning over time over many different hands.
You don't have to play a lot of different hands, you can come out on top.
Beat the House – Walk Away When You're Winning
If you decide that the house edge in the casino you're playing in is, say, 1%, that means you're losing about 1% of whatever you're betting over time.
But what happens when you win on the first hand? Let's say you hit blackjack on your very first hand—lucky, but certainly not impossible.
Let's further say that you bet $100 on that firsthand and the casino pays 3:2 on a natural, so you're now up $50.
What happens when you walk away? You walk away with $50.
See, the house edge only means something over thousands of hands—tens of thousands, hundreds of thousands—all the hands that you play and that everyone else plays.
But if you only play a few hands (even a few dozen), you're not in the realm of statistics anymore, you're in the realm of randomness and luck.
If you walk away from the table before you start to lose (and you will start to lose if you play enough hands), then you've just beaten the odds.
The same can be said for losing, however, if you find yourself down, cutting your losses may be the best way to go. It's certainly possible you can win your money back and get on top again, but on average, you are literally paying money to play, in the form of that 1% of your bet that the house is claiming on average.
The Solid Base of the House Edge That You Can Never Overcome
While we can talk all day long about blackjack strategy and how much money you make on a natural and all that jazz, I think it's instructive to look at the origin of the house edge in the first place.
Every game you play in a casino has some simple rule that automatically guarantees the house and edge of some sort. Games of pure luck keep that house edge rigid, for example, there's not much you can do to influence the odds of a roulette wheel. You place your bet, you let that sucker spin, and you either win or you lose. That's that.
Blackjack's house edge may be much more flexible given how you can apply strategy, but the foundation of the edge comes from the simple fact that you can bust before the dealer even has a chance to play their hand.
Think about it! If you bust, the dealer might have busted as well, but it still counts as a win for the dealer because you bust first. The dealer doesn't have to reveal their hand until the end.
That translates into a huge advantage for the dealer. The house starts off with such an enormous advantage that all those other rules have to be put into effect just to get the darn thing down to something reasonable, and even then, you need a solid strategy if you're going to beat the house.
What Is a Blackjack Strategy?
House Odds Blackjack
A blackjack strategy is essentially a set of rules that takes into account probabilities of cards turning up and then makes recommendations one what you should play based on your hand and the card the dealer has revealed.
While there are more than a few blackjack strategies out there, you're going to need to do at least some studying if you want to understand how to reduce the house edge and get yourself to a place where you can at least have a chance of making some profit.
Blackjack House Edge
Remember, even with a strategy, the house still maintains that edge. There's no way around it. So, on top of whatever strategy you come up with, it's still a good idea to learn how to get out when the gettin's good.
Blackjack House Edge Calculator
Sometimes, you're going to walk away when you feel like you're on a winning streak. At the beginning, I say that you're going to have a bad time if you don't like math, and it's true. Free pai gow poker with bonus game. Every hand you play is a complete tossup. There's no such thing as having a hot or cold streak.
The only way you beat the house is to quit when you're ahead.
Conclusion
The house edge works in blackjack in just about the same way it works in every other game, that is to say, it works for the house and against you. Learn some blackjack strategy, take free gambling lessons at some of the bigger casinos, learn what you can learn from watching the pros, but ultimately, if you want to beat the house edge, learn to walk away.
