How Does A Casino Make Money From Blackjack?

Blackjack is a perennial favorite at casinos around the world, but how does the casino make money from blackjack? Simple to learn and easy to play, blackjack is a staple amongst the table games of the online casino industry.

Savvy players will also know that online blackjack has one of the lowest RTPs around, which makes blackjack one of the online casino games for players looking to win big. While online slots can have an RTP of as low as 85%, online blackjack has an incredibly low house edge of 1.5%: the lowest house edge amongst online casino games.

With an incredibly low house edge of 1.5%, you’re probably wondering: “How does a casino make money from blackjack?”. With such a low advantage, you might think that it wouldn’t be worth it for casinos to offer blackjack. But online blackjack is as popular as ever, particularly with the increasing availability of live dealer online blackjack. So just how does a casino make money from blackjack? We take a look at this question and see how you can improve your chances at the blackjack table.

What is a House Edge?

Although you’ve probably heard of house edge before, it’s always good to have a refresher. House edge is the advantage that the casino has in a given game. The percentage reflects the amount of money that the casino would expect to win from the player over the course of the game. So a casino would expect to win $1.50 from a player’s $100 bet (on average) in blackjack.

Return to player (RTP) percentage is the other side of the coin to house edge. Blackjack has an RTP of 98.5%, which means that you would expect to keep $98.50 of your $100 bet on average. Ultimately, you want a low house edge and as high of an RTP as possible.

Why Does the Casino Have an Edge in Blackjack?

The casino has the advantage in every game offered. It’s a simple fact and how the casino is able to turn a profit. The means by which the casino has the edge varies between games. In blackjack, the casino has the edge on the player in several key areas, including the table conditions.

The key area in which the casino has the edge in blackjack is the playing order. In blackjack, the dealer is always the last to act on their hand. This means that the players can all go bust before the dealer even has an opportunity to act upon their hand. This gives the house a distinct advantage as you have the opportunity to lose the hand first.

The other key areas in which the casino has the edge is the table conditions. The number of decks used in the game is very influential as the greater the number of decks used, the higher the house edge. This is because there is a decreased probability of getting blackjack. Whether or not tables allow doubling down and splitting pairs will also influence the house edge as both these actions give the player an advantage.

The table conditions also impact the dealer and how they play. Most blackjack tables will either mention that the dealer “hits soft 17” or “must stand on all 17’s”. A ‘soft’ hand is a hand which includes an ace which is valued at 11. Although the dealer is more likely to bust on “hits soft 17”, it can also lead to the dealer having a stronger hand than the player thereby increasing the house edge by 0.22%.

As you can see, the rules and conditions of the game you choose have already set the house edge of blackjack before the dealer draws a single card. Another factor which gives the casino the advantage and cost you money are the mistakes that you, the player, can make.

Mistakes That Give a Casino the Edge in Blackjack

When you read about house edge in blackjack online, experts will assume that you are already well-versed in blackjack and won’t make any basic mistakes. The reality is that everyone can make mistakes, regardless of experience, and new players may not know some of the best tips for online blackjack.

One of the first mistakes players can make is choosing the wrong table. A table which pays out 3:2 is always preferable to 6:5. It may be basic math, but this is one of the most overlooked and ultimately costly mistakes players can make. A winning bet on a $50 hand would pay out $75 at 3:2, but only $60 on 6:5. As you can see, the costs of picking the wrong table can be very advantageous to the casino.

If the dealer has an ace, you are offered the opportunity to place a special side-bet: insurance. By placing a bet of half your initial wager, you are hedging your bets in case the dealer has blackjack. Although this sounds like a good deal, most experts would argue that insurance is bad for players in the long run. Taking the insurance side-bet is another simple way in which inexperienced players can help give the casino more of an edge in blackjack.

How Can I Improve My Chances in Blackjack?

With a low house edge, players are already in a good position to further improve their chances in blackjack. In order to improve your chances, a basic strategy is an absolute necessity. Our resident experts at Gamble Online have already prepared a basic blackjack strategy which can help new and experienced players to improve their chances. You can even use a blackjack strategy chart to learn what to do in any given situation. You can also read about the 10 mistakes players make at the blackjack table and learn how to improve your chances by avoiding them.

Can Card Counting Improve My Chances in Blackjack?

Theoretically, card counting in blackjack can improve your odds and tip the edge towards the player. Practically speaking, card counting is an incredibly difficult strategy that requires a lot of focus and skill.

If you are able to learn card counting, it absolutely can increase your chance of winning but only in a land based casino. Card counting is ineffective in online casinos as the decks are reshuffled after every hand by the random number generator rendering card counting impossible.

If you’re interested in trying your hand at blackjack online, read our casino reviews to find your new favorite safe real money online casino today.