House Edge
The house edge is the built-in mathematical advantage that guarantees the operator a profit over enough bets.
What it means
The house edge is the percentage of each wager the operator expects to keep over the long run. A 2% house edge means that, across millions of bets, the casino retains 2 cents of every dollar staked. It is the mirror image of Return to Player (RTP): a 98% RTP game carries a 2% house edge.
Why it matters for operators
House edge sets your theoretical margin per vertical and per game. Slots typically run a higher edge than blackjack or baccarat, which is why game mix directly shapes profitability. It is theoretical, not guaranteed — short-term variance can swing results hard, which is why bankroll and exposure management matter.
Example
On a roulette game with a 2.7% house edge, 1,000,000 in wagers returns roughly 27,000 in expected GGR before variance.