What is house edge?
The house edge is the average share of each bet the casino keeps over time. On a game with a 2% house edge, a player who wagers $1,000 can expect to lose about $20 in the long run. For slots, the house edge is 100% minus the RTP (return to player): a slot with 96% RTP has a 4% edge.
| Game | Typical house edge |
|---|---|
| Crash and dice games | about 1% |
| Blackjack with basic strategy | about 0.5% to 1% |
| Baccarat, banker bet | about 1.06% |
| European roulette | 2.7% |
| American roulette | 5.26% |
| Slots | 100% minus RTP, often 3% to 6% |
How casino rakeback uses the house edge
rakeback = amount wagered × house edge × rakeback rate
The house edge sits in the middle of the formula, which shrinks the result. A 10% rate on a 1% edge game returns 0.1% of the amount you bet.
| Rakeback rate | 1% house edge | 2% house edge | 4% house edge |
|---|---|---|---|
| 5% | 0.05% of wagers | 0.1% | 0.2% |
| 10% | 0.1% | 0.2% | 0.4% |
| 20% | 0.2% | 0.4% | 0.8% |
| 50% | 0.5% | 1% | 2% |
On $10,000 of bets, 0.1% is $10 and 2% is $200.
Why 10% in a casino is not 10% in poker
In poker, rake is taken from pots, and rakeback is a share of that rake. A player who pays $1,000 of rake and gets 10% back receives $100. A casino player who wagers $100,000 on a 1% edge game at 10% rakeback receives the same $100, but only after wagering a hundred times more.
| Poker, 10% rakeback | Casino, 10% rakeback, 1% edge | |
|---|---|---|
| What is counted | rake you paid | house edge on each bet |
| $100 of rakeback needs | $1,000 of rake | $100,000 of wagers |
Converting other bases
Some casinos use turnover or net loss instead of house edge. To compare them, convert each offer to a share of wagers:
- House-edge rakeback: multiply the rate by the house edge. 20% × 2% = 0.4%.
- Turnover rakeback: the rate already is a share of wagers. Wild.io at 0.3% pays 0.3%.
- Cashback on losses: multiply the rate by your expected loss, which is the house edge. 10% × 2% = 0.2% on average.
Example comparison on a 4% edge slot
| Offer | Share of wagers | On $10,000 |
|---|---|---|
| Shuffle, 5% of house edge | 0.2% | $20 |
| Clash.gg, 0.75% of turnover | 0.75% | $75 |
| Cryptorino, 10% cashback on expected loss | 0.4% | $40 |
Rakeback never beats the house edge
Because rakeback is a share of the house edge, it is always smaller than the edge itself. At 50%, a 4% edge game still costs 2% of every bet on average. Rakeback reduces losses; it does not reverse them.
Questions and answers
What is rakeback in a casino?
A share of the house edge on every bet, returned to the player. At 10% on a 1% edge game, it equals 0.1% of the amount wagered.
What is rakeback in gambling?
The general term for money returned as a share of the operator's fee or margin: rake in poker, house edge in casinos.
How do I find a game's house edge?
For slots, subtract the RTP from 100%. For table games, check the game rules or information screen.
Can rakeback make casino games profitable?
No. Rakeback is a share of the house edge, so the edge always remains larger than what is returned.