House Edge

House edge is the mathematical advantage a casino holds over players on each game, expressed as a percentage of each wager the operator expects to retain over time.

What it means in practice

House edge is the built-in statistical advantage that ensures a casino generates revenue over time. It represents the percentage of every wager that the operator expects to keep on average. A game with a 5% house edge means the casino retains $5 for every $100 wagered over a large sample size. This is the foundation of GGR (Gross Gaming Revenue) - the metric that drives RevShare calculations in affiliate programs.

Different games carry different house edges. Slots typically range from 2% to 10%, blackjack can be under 1% with optimal play, and roulette sits around 2.7% (European) or 5.26% (American). For affiliates operating under RevShare or hybrid commission deals, the house edge of games their referred players prefer directly impacts commission revenue. Players on low-edge games generate less GGR per dollar wagered.

House edge is related to but distinct from Slot RTP (Return to Player). RTP is the complement of house edge: a slot with 96% RTP has a 4% house edge. Understanding this relationship helps affiliates evaluate which casino products and game portfolios will generate the most sustainable NGR (Net Gaming Revenue) for their traffic.

How House Edge works across industries

See how house edge is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.

Online Casino

House Edge in Online Casino

In online casinos, house edge varies dramatically by game category. Slots carry the highest edge (2-10%), table games sit in the middle (1-5%), and skill-based games like blackjack can have sub-1% edges. Affiliates earning [RevShare](/glossary/revshare) benefit when referred players gravitate toward higher-edge games, though this must be balanced against player retention.
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iGaming

House Edge in iGaming affiliate programs

Across iGaming, house edge is the fundamental driver of operator revenue and therefore affiliate commissions. Operators factor house edge into their [GGR](/glossary/ggr) and [NGR](/glossary/ngr) calculations, which determine RevShare payouts. Affiliates who understand game-level economics can better evaluate which operator partnerships offer the most sustainable earnings.
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Sportsbook

House Edge in Sportsbook

In sports betting, the equivalent of house edge is the [betting margin](/glossary/betting-margin) or overround built into odds. A 5% overround means the sportsbook expects to retain 5% of total handle. For [sportsbook affiliates](/glossary/sportsbook-affiliate), the margin determines how much GGR is generated per dollar wagered by referred bettors.
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How Track360 handles this

Track360 provides real-time reporting that lets operators and affiliates see revenue metrics broken down by player activity. Operators can configure commission structures that account for game-type performance, ensuring affiliate payouts reflect actual GGR contribution.

FAQ

Frequently Asked Questions

Common questions about house edge, how it works in affiliate programs, and where it shows up across Track360's supported verticals.

House edge is the mathematical percentage of each wager that a casino expects to retain over time. A 4% house edge means the casino keeps $4 out of every $100 wagered on average. It is the inverse of RTP (Return to Player).

Related Terms

iGaming

GGR (Gross Gaming Revenue)

iGaming
Read Definition

GGR is the total amount wagered by players minus the total amount paid out as winnings. It represents the raw revenue an iGaming operator earns from player activity before any deductions for bonuses, taxes, or operational costs.

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iGaming

NGR (Net Gaming Revenue)

iGaming
Read Definition

NGR is the revenue that remains after an operator deducts costs such as bonuses, taxes, and platform fees from GGR. It is a common base for RevShare calculations in iGaming affiliate programs.

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Online Casino

Slot RTP (Return to Player)

Online CasinoiGaming
Read Definition

RTP (Return to Player) is the theoretical percentage of total wagered money that a slot machine or casino game is designed to pay back to players over time. An RTP of 96% means that, on average, the game returns $96 for every $100 wagered, with the remaining $4 representing the house edge.

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Sportsbook

Betting Margin

Sportsbook
Read Definition

The betting margin (also called overround, vigorish, or juice) is the built-in profit margin a sportsbook applies to its odds, representing the difference between the true probability of outcomes and the implied probability reflected in the offered odds.

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Commission & Payouts

RevShare (Revenue Share)

iGamingForexProp Trading
Read Definition

RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.

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Online Casino

Casino Hold Percentage

Online CasinoiGaming
Read Definition

The casino hold percentage is the proportion of player wagers that the casino retains as revenue over time. It reflects the mathematical advantage built into casino games and directly determines how much GGR an operator generates from player betting activity.

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iGaming

Wagering Requirement

iGaming
Read Definition

A multiplier condition that determines how many times a player must wager bonus funds before those funds become withdrawable. Wagering requirements directly affect operator bonus costs and affiliate RevShare earnings.

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Online Casino

RNG (Random Number Generator)

Online CasinoiGamingSweepstakes
Read Definition

An RNG is an algorithm used by online casinos and gaming platforms to produce unpredictable outcomes, ensuring fair play across slots, table games, and lotteries.

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