House edge is the percentage of your betting amount what the casino will take if you win the game. People can think that the casinos are cheating with them by credited with the house edge but that is not true. They take the house edge to charge of their service. House edge is the built in earnings for every bet the players made for each game.
Usually the house edge is fixed for every game but the video poker and blackjack is different from other game. for this two games, house edge can not be defined at the starting of the game, the house will be decided after every round going on and the players can change the amount of house edge for this two games by changing their way to play the game.
How it Works
Whenever you gamble, there is a probability to win or lose. If you place your bet on coin tossing then you have the chance to win or lose is 50-50 and that will be a money bet and if you bet $5 and you will win $5 if that front of coin showed up. If you lose the casino will take your betting amount and if you win then the casino will pay you $4.75 then the house edge becomes 5%.
So here is the calculation, the house edge is the difference between your true earnings and the amount the casino will pay you. Every casino has its own house edge charts and if you ask for they will provide you the chart when you want to play the game.
Every chart has its own sections for each game. A single game can have different amount of house edge for different situation. As an example, roulette has different types of bets if you bet on a single number then your house edge will be the lowest but is you bet on a group of numbers then the house edge will be higher than the single number. This is because; a group of numbers has more odds than a single number to win so if you win the house edge for a group will be much higher than a single number.
House Edge for American Roulette
Though, American roulette has usually 38 slots with 2 zero slots. If you bet on a single number and win you will get $35 for your betting amount but the real odds are 37/1, so the extra $2 is the house edge and as percentage the house edge for American roulette is 5.26%.