Why Does the House Always Win? At its core, the whole business of casino gambling is very simple. Casinos earn money on their bets because of the simple math behind the games themselves. With a couple of prominent exceptions, the house always wins – at least in the long term – because of this mathematical advantage that the casino benefits from.
And that’s basically what casino games are: games of chance – or at least, ones with a house edge. If you can beat the house edge, you’ve got the game under your control. The problem is that most people can’t beat the house edge. That’s why casinos make their money by counting the number of bets they let win rather than the actual payouts to players.
So if the question still stands, why does the house advantage keep getting higher? It’s simple: For every bet you make, the casino adds an amount called the rake. The rake is the portion of each bet that the house takes. For every single win a player makes, that player’s winnings are added to the total rake. Now that we know why the house edge exists, we can see how it affects the likelihood of you winning big money at craps.
When you play craps at a casino game table, you’re playing many different games all at once. Each time you place a bet, your odds of winning change, depending upon the outcome of those previous bets. That’s why the casino keeps adding those rake payments to the pot because the number of players at the table averages out to be a certain number. When those players ante up, they increase the amount that the casino pays out per hour.
Now we can understand the reason for the high house edge. The way the math works, it’s easy to see that there must be some way for the pot size to get smaller. How? Let’s say you have an even chance of winning the pot because no player has raised the minimum bet (which means they’ve all been paying regular bets). What if the pot does get smaller, and yet you’re still having a hard time making a profit because the rest of your competitors are all betting regular-sized bets. This means the house edge must be getting bigger!
To fix the problems with the house edge, you can use what’s called a “probability management technique” to control the size of your potential bets. Probability management is exactly what it sounds like: the way you control the amount you place into the pot based on how likely you think it is that someone will come in with a bet of that size. The best example of this is the classic Texas Hold ’em poker machine, where you can always bet the exact amount of money you have on the flop; as long as you’re betting at even numbers, and you’re not betting on the flop or the river, there’s no reason to ever leave even a single coin on the table, no matter what.