Casinos are money-making machines, drawing in billions of dollars each year per casino. That is a lot of money, even for the entertainment industry. The main way casinos make money is by the lost bets of the players and the inherent house advantage known as the house edge.
What is House Edge?
House edge is the mathematical advantage the casino has over the players. It is a percentage of the winnings that the player receives that is taken by the casino. The amount of money depends on the percentage, and the percentage depends on the game. For example, slot machines and lotteries have a house edge of 5 to 25%, while games like blackjack, poker, roulette have a house edge of less than 4%. The house edge also varies for different versions of the same game. For example, the blackjack variant with 3:2 odds pays better than the variant having 6:5 odds. The variant of roulette having no zeroes offers better odds than one with one or more than one zeroes.
What is Special About Video Poker?
Video poker is a game played on a computerized console. With respect to its appearance, it looks a lot like a slot machine. However, unlike a slot machine with an average house edge of 10 to 15%, video poker provides some of the lowest house edges at a casino. In fact, they are so low that some video poker games have an RTP greater than 100%. This is very odd to a regular casino goer because there are hardly any games that give out more money than they have met.
Another interesting thing about video poker is that it is not played against other people but against a computer. This means that once you know the basic poker strategy, there is not much stopping you from getting a lot of money.
What Do Casinos Do To Limit The Wins?
Casinos are fully aware of the RTP of video poker machines. They know that they are giving the players an advantage by placing a video poker machine in their casino. However, they sometimes use this even as a marketing strategy to attract more customers to their casino. Furthermore, not a lot of casinos offer video poker, let alone one that offers an RTP of 100%. Such casinos are usually ever found in major gambling cities like Las Vegas or Macau.
Even though video poker does have a high RTP, there is a catch here as well. Irrespective of what game you play at the casino, and however high the RTP may be, the casino will eventually get the upper hand. This is because everyone’s luck runs out at some point, and this can make the RTP slide. So, it is best to have a win-stop limit.