Why Do Casinos Offer Games Like Blackjack?
Understanding the casino's perspective on low house edge games
Blackjack: A "Low Negative Expectation" Game
Blackjack is famous for having one of the lowest house edges in the casino—about 0.5% when played with perfect basic strategy. This means that, on average, players lose only 50¢ for every $100 bet. But if the game is negative for players, why do casinos offer it?
How Casinos Profit from Blackjack
- Volume Over Time: Even a small house edge adds up over thousands of hands. With enough play, the casino's advantage is guaranteed to show.
- Player Mistakes: Most players don't use perfect basic strategy, increasing the house edge to 1-2% or more.
- Entertainment Value: Blackjack is fun, social, and skill-based, attracting players who stay longer and bet more.
- Side Bets: Many tables offer side bets with much higher house edges, increasing casino profits.
- Comps and Atmosphere: Casinos use perks and a lively environment to keep players at the tables.
If a casino has 5 blackjack tables, each dealing 60 hands per hour, with 5 players per table betting $20 per hand:
• Total wagered per hour: 5 tables × 5 players × 60 hands × $20 = $30,000
• Expected casino profit per hour (0.5% edge): $150
Over a 12-hour day, that's $1,800—from just a small edge!
Why Offer Low Edge Games?
- Attract Players: Games like blackjack bring people into the casino, where they may also play higher edge games (slots, side bets, etc.).
- Perceived Fairness: Players feel they have a chance to win, making the game more appealing and encouraging longer play.
- Skill and Excitement: The mix of luck and skill keeps players engaged and coming back.
What Does "Negative Expectation" Mean?
A negative expectation game means that, over time, the average player will lose money. The house edge is the casino's built-in advantage, ensuring long-term profit. Even if some players win in the short run, the math always favors the casino in the end.
The Bottom Line
Casinos offer games like blackjack because they are entertaining, popular, and profitable—even with a low house edge. The key for players is to understand the odds, play smart, and always gamble responsibly.