Beginner Guide
7 min read

The Truth Behind House Edge

Why It Matters
Pool payouts are driven by the popularity of picks. Lightly backed winners can pay more; heavily backed winners pay less per unit.
Key Takeaways
  • Payouts depend on how many winners share the pool.
  • Operator takeout reduces the distributable pool.
  • Value often lies in under-backed selections.

House edge is the built-in statistical advantage a casino has over players. It’s expressed as a percentage of each bet the casino expects to keep over the long run.

How it works: Games are designed so the expected value (EV) of a player’s bet is slightly negative. For example, if a game has a 2% house edge, the long-term average loss is ₱2 for every ₱100 wagered.

Common examples:

  • Roulette (single-zero): ~2.70% house edge.
  • Blackjack: ~0.5% to 2% depending on rules and player strategy.
  • Slots: typically 4% to 12% depending on the machine and configuration.

Variance vs. expectation: Short-term results can vary widely (wins/losses), but over many bets the results converge toward the expected loss implied by the house edge. Understanding house edge helps players set realistic expectations and manage bankrolls more effectively.

1Collect Bets
100 bettors x ₱100 → pool ₱10,000
2Takeout
10% operator fee → ₱1,000
3Divide Net Pool
₱9,000 ÷ 25 winners = ₱360 each
Legal & Responsible Gaming

In the Philippines, gambling activities are regulated by PAGCOR and other authorities. Only participate via licensed operators.

Always gamble responsibly. Set limits, avoid chasing losses, and seek help if gambling impacts your well-being. Visit PAGCOR for official guidance.

Typical Takeout
5%–20%

Varies by game/operator

Common Uses
Racing, Sports Pools

Multi-leg pick’em formats

Payout Certainty
Not Fixed

Depends on winners