House edge is a term used to describe the theoretical long-term margin built into a gambling game. In the context of pokies, house edge is commonly discussed as the counterpart to RTP and helps explain how a game is designed to perform over very large numbers of spins.
What house edge means
House edge represents the portion of total stakes that is not returned to players over time. It is expressed as a theoretical percentage and forms part of the game’s mathematical model.
In practical terms:
- House edge is a long-term concept
- It applies across a very large number of spins
- It does not describe short-term outcomes
- It does not predict individual results
House edge and RTP
RTP (return to player) represents the theoretical percentage of total stakes that a pokie is designed to return over time. House edge can be understood as the remaining percentage.
For example:
- RTP of 96% corresponds to a house edge of 4%
- RTP of 95% corresponds to a house edge of 5%
These values are mathematical complements within the same model.
What house edge does and does not describe
House edge helps describe how a game behaves in aggregate over extended play. It does not provide insight into what may happen during a short session or a specific spin.
House edge does not indicate:
- When wins will occur
- How large individual outcomes will be
- How long a session may last
- Whether a session will result in a net gain or loss
Each spin remains independent and is generated by the same random outcome system.
How house edge is defined
House edge is embedded into the game during development. It is influenced by factors such as paytable values, symbol probabilities, and feature rules.
Important characteristics:
- Defined during game design
- Fixed within the mathematical model
- Does not change during play
- Not influenced by player behaviour
- Consistent across all sessions of the same game
House edge works alongside other parameters rather than acting alone.
Relationship to other game metrics
House edge is closely related to several other design metrics used to describe pokies.
Related concepts include:
- RTP (return to player)
- Volatility or variance
- Hit frequency
- Payout distribution
Each metric highlights a different aspect of long-term game behaviour.
Technical overview
| Aspect | Description |
|---|---|
| House edge | Theoretical long-term margin |
| Relationship to RTP | Complementary (100% - RTP) |
| Applies to | Large number of spins |
| Changes during play | No |
| Influenced by player behaviour | No |
| Used for short-term prediction | No |
What you can do next
- Learn how RTP is calculated in game design
- Read how volatility affects outcome distribution
- Explore how payout structures influence house edge
- Return to the pokies section for more informational content
Informational disclaimer
PokiesHub Australia does not provide access to games and does not promote gambling activity. This information is presented for educational purposes only.
The content is intended to help readers understand how house edge is used as a descriptive concept within the Australian gaming industry.