There is a lot to learn about online gambling from the game of online European roulette. One such lesson is the role of house advantage and that of player payout percentages which you receive from different types of bets. In fact, we are going to delve into the advantages of playing this game and how various bets have different levels of risks. Although it is thought that all bets in European roulette have essentially the same payout rate, is this really true?
The mathematics behind the house edge
To recap, the house edge is the percentage of each wager that is expected to go to the online casino. The higher the house edge, the less advantageous it is for the player of the game. It is not always straightforward to calculate the house edge of some online casino games. However, when it comes to online roulette, it is fairly easy to calculate the house edge.
One of the simplest bets one can place in this game is the single bet which allows you to place a bet on any number between 1 and 36 as well as the single zero. A player who places a simple bet of €1 can expect a €35 win and a €1 which is forfeited if he loses to the casino.
Out of 37 possible outcomes, the player can win on only one outcome so the chances of winning stands at 1:37 or 0.027. At the same time, out of 37 possible outcomes, there is a probability of losing 36:37 or 0.973.
Here’s how the house edge is calculated
If the player is placing a €1 bet, it is calculated as (35 x 0.027) – (1 x 0.973) = – 0.027. Therefore, for every €1 bet on any single number, the player is expected to lose €0.027 or if you want to look at it from a casino’s perspective. The house is expected to retain €0.027. In terms of percentages, it totals to 2.7%.
What if you decide to go with a corner bet? A corner bet wins an 8x payout, a total of 4 out of 37 times, and loses 1x bet 33:37. The percentage comes to 2.7%. If you repeat the same process with other bets, you will get the same percentage loss which acts as the house advantage regardless of how you bet in the game.
One of the best things about the game of European roulette is that the house advantage tends to stay quite stable, regardless of how you bet, so the risk and reward ratio evens out to give you essentially the same payout rate. Therefore, if you place a bet on one number for a while then alter the betting to three, the payout rate will automatically adjust itself to keep the payout rate the same.
You can develop quite complex strategies based on this information without you having to worry about the repercussions on the overall house advantage.