Guide

House edge and rakeback

House edge is the casino's built-in margin on a game, and most casino rakeback is calculated from it. That is why a casino offering 10% rakeback and a poker room offering 10% rakeback pay very different amounts: one is 10% of a small margin on each bet, the other is 10% of the rake you paid.

This guide explains what the house edge is, how to turn a rakeback rate into a share of your bets, and how to compare casinos that use different bases.

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:

  1. House-edge rakeback: multiply the rate by the house edge. 20% × 2% = 0.4%.
  2. Turnover rakeback: the rate already is a share of wagers. Wild.io at 0.3% pays 0.3%.
  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.