Advantage

The percentage edge one bettor has over another. Usually refers to the edge the house (casino) has over the player.

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All casino games have a house edge, or "advantage", over the player. This is a mathematical certainty over time, and with a large enough number of bets, the advantage will make the casino a profit. The casino's advantage comes from paying out bets at less than their true odds.

To use a mechanical slot machine example, suppose you have a slot machine which has 3 reels with 10 symbols on each reel. The chances of matching 3 symbols on all 3 reels = 1/10 X 1/10 X 1/10, or 1/1000. If the casino paid 1000 to 1 on every bet and only paid out when three symbols matched, this would be a break even bet for both the player and the casino.

But a casino would more likely pay a different amount based on which symbols matched. One set of symbols might pay 1000 to 1, but the rest might pay out less, giving the casino an advantage over time. Casinos will also provide smaller payouts for partial matches, but those don't pay out at true odds either.

For example, there is a 1/100 chance of matching 2 symbols on the first two reels. A casino could pay out at 50 to 1 when that happens and guarantee themselves a profit over time. That edge is called the "advantage".

On some casino games, like blackjack, a player can gain an advantage over the house with card counting strategies or shuffle tracking techniques.

Mark Pilarski offers a unique way of looking at the casino advantage here.

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