Casinos have an edge in almost every game that is on the gaming floor.
In fact, there is only one type of machine that never has an edge for the casino built into it. That machine is the bill changer. Assuming it is working properly, the player always gets 100 percent return – five $20 bills for one $100 bill, four $5 bills for one $20 bill, and so on.
Every other machine on the gaming floor provides an edge for the casino.
- The rules for some games such as blackjack allow the dealer to win more hands to give the edge to the casino.
- Other games such as slot machines, craps and roulette, pay less than full odds on all winning hands.
- Some games take the house edge separately.
- Poker rooms take a rake (a percentage of the pot, usually with a dollar limit), or a fee to play.
- Baccarat and Pai Gow poker charge a commission on certain winning hands (those that would give players the edge).
How does a casino get the edge in video poker where player skill can influence the results? Read on.
1. The random number generator and a fair deal
Video poker games are all based on the assumption of dealing from a random deck of cards. This is not accomplished by shuffling a virtual deck of cards in the machine’s programming. Instead, video poker games use a Random Number Generator (or RNG). The RNG cycles very quickly (about 1,000 numbers per second) through a large range of numbers.
When the player hits the Deal or Draw button, the software selects five numbers and translates them into five different cards. Because of the speed of the RNG as well as the large range of numbers, this process comes extremely close to a random deal.
A random deal is considered a fair deal because over a long period of time each card will appear an equal number of times – the same as a thoroughly shuffled deck of cards.
2. Odds of having a winning hand
A random (fair) deal means that, over time, each possible hand will be dealt the same number of times. From this, the odds of various hands appearing can be calculated.
Game manufacturers as well as casinos and players can also know how often certain winning hands will appear, on average. Winning hands include:
- Jacks or better has nine distinct paying hands.
- Royal Flush
- Straight Flush
- 4-of-a-kind
- Full House
- Flush
- Straight
- 3-of-a-kind
- 2 Pairs
- Pair of Jacks or Better
- Double-Double Bonus Poker has 13 distinct paying hands.
- Royal Flush
- Straight Flush
- 4 Aces with a 2, 3, or 4
- 4 2s, 3s, or 4s with an Ace, 2, 3, or 4
- 4 Aces
- 4 2s, 3s, or 4s
- 4 5s thru Kings
- Full House
- Flush
- Straight
- 3-of-a-kind
- 2 pairs
- Pair of Jacks or Better
- Deuces Wild has 10 distinct paying hands.
- Royal Flush
- 4 Deuces
- Wild Royal Flush
- 5-of-a-kind
- Straight Flush
- 4-of-a-kind
- Full House
- Flush
- Straight
- 3-of-a-kind
3. Pay tables: amount paid versus true odds
Pay tables contain not only the winning hands, but also the amount that hand pays. It is in the format of n for n, such as 6-for-1.
In a perfect game where neither the casino nor the player has an edge, the amount paid for each winning hand would match the true odds of that hand appearing. The reality is that they do not. One reason is the amounts paid would have to be in fractions of a credit.
Instead, the pays for most hands are close to true odds. Some are lower, some are higher. The average of all winning hands, over time, comes close to true odds. The difference creates either a casino or player edge.
Casinos can, and do, alter pay tables to set whatever return they would like. Not all pay tables for the same game and denomination are set the same.
4. Why do casinos offer video poker games that return more than 100%?
Yes, sometimes video poker games have a player edge.
It does not happen often, but on occasion, casinos will have jacks or better, double bonus poker, deuces wild, or some other game that returns more than 100% – a game with a player edge.
Why would a casino put such a game on their gaming floor? Mostly as a drawing card. The player’s edge tends to be low – less than one tenth of one percent. But that is enough to draw more players into the casino.
Most of those players do not play proper strategy. Consequently, they give up a decent portion of their possible return, making their play at least slightly profitable to the casino.
Many of the video poker players that respond to the ads about the player edge do not realize they have to play a specific game and pay table to get the advertised return, Casinos may only have one or two of the player-favorable games on the floor, but the new players will sit at any game, or if they know to look for a specific game will not check the pay table.
Also, many players bring their non-video poker playing spouses and friends with them. These players more than make up for the reduced profit from the video poker players.
The additional players and the less knowledgeable video poker players make up for the minimal player profits.
5. Summary
- The random number generator (RNG) within the video poker machine’s programming is responsible for ensuring a random, (fair) deal.
- Because the deal is random, the odds of specific (winning) hands can be determined.
- Using both the odds for winning hands occurring and the amount paid for those hands, the return of video poker games can be calculated. Tweaking the pays for winning hands alters the return so casinos can set the amount of their edge.
- Sometimes casinos offer video poker games that have a player edge. They do that in order to attract players.
- Video poker players often bring non video poker playing family and friends with them so the casinos make money on those additional players.
