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How Do Casinos Make Money on Blackjack?

How Do Casinos Make Money on Blackjack?

Blackjack is a popular casino game that attracts players with its relatively low house edge and potential for high returns. But how do casinos make money on blackjack if the odds seem to favor skilled players? The answer lies in various factors, including the house edge, game rules, and other aspects that give casinos an advantage over the players. In this article, we will explore these factors in depth and help you understand what makes blackjack a profitable game for casinos while also offering players a chance to win big.

Understanding the House Edge

The house edge is a fundamental concept in casino gaming. It represents the average percentage of each bet that the casino expects to win over the long term. In other words, the house edge is the casino's built-in advantage in a given game. For blackjack, this advantage can range from as low as 0.5% to up to 2% or more, depending on the specific rules and playing conditions of the game.

What is the House Edge?

The house edge is a measure of the casino's advantage over the player in a given game. It is expressed as a percentage, reflecting the average amount the casino expects to win from the player's bets over time. For example, in a game with a 2% house edge, the casino expects to make a profit of 100 wagered by the player.

Why Does the Casino Have an Edge in Blackjack?

The casino has an advantage in every game offered, which allows them to turn a profit. In blackjack, the edge comes from several factors, including the playing order and the table conditions.

Playing Order

In blackjack, the dealer always acts last in the game. This means that players can go bust (exceed 21) before the dealer has a chance to act on their hand. This gives the house a significant advantage, as players can lose the hand first, regardless of the dealer's outcome.

Table Conditions

The number of decks used in a game can also influence the house edge. The more decks used, the higher the house edge, as there is a decreased probability of getting blackjack. Other factors like doubling down, splitting pairs, and dealer rules also impact the house edge. By adjusting these rules and conditions, casinos can maintain their advantage over players.

Blackjack Rule Variations and Their Impact on the House Edge

The house edge in blackjack is influenced by the specific rules and playing conditions of the game. By understanding these variations, you can choose games with a lower house edge, increasing your chances of winning.

Deck Number

The number of decks used in a blackjack game significantly affects the house edge. As the number of decks increases, the house edge rises due to the decreased likelihood of getting blackjack. Single-deck games generally have the lowest house edge, while games using multiple decks have a higher house edge.

Dealer Rules

The dealer's actions in a blackjack game are governed by strict rules, which can impact the house edge. Most blackjack tables will either state that the dealer "hits soft 17" or "must stand on all 17s." A 'soft' hand is a hand containing an Ace valued at 11. Although the dealer is more likely to bust on "hits soft 17," it can also lead to the dealer having a stronger hand than the player, increasing the house edge by 0.22%.

Doubling and Splitting Rules

The rules for doubling down and splitting pairs also affect the house edge in blackjack. Generally, the more flexibility players have when doubling or splitting, the lower the house edge. However, some casinos restrict doubling to specific hand totals or disallow splitting certain pairs, which can increase the house edge.

Surrender Rules

The surrender option, when available, allows players to forfeit their hand and lose only half of their bet instead of the full amount. Early surrender, which lets players surrender before the dealer checks for blackjack, provides a significant advantage to the player, reducing the house edge. However, this rule is rare in most casinos. Late surrender, where players can only surrender after the dealer has checked for blackjack, reduces the house edge by a smaller margin.

Blackjack Payouts

The payouts for blackjack hands also impact the house edge. A traditional 3-to-2 payout for blackjack reduces the house edge, while a 6-to-5 payout increases it. Some casinos even offer even-money payouts for blackjack, significantly increasing the house advantage.

Basic Strategy and Reducing the House Edge

One way to improve your chances of winning at blackjack and reduce the house edge is by using basic strategy. Basic strategy is a set of optimal playing decisions based on the player's hand and the dealer's upcard. By following basic strategy, you can minimize the house edge and increase your chances of winning.

Card Counting and Advantage Play

Card counting is a technique used by skilled blackjack players to gain an advantage over the casino. By keeping track of the cards that have been played, card counters can make informed decisions about when to hit, stand, double down, or split. This can give them a positive expected value (EV) in the game and allow them to make a profit over time.

However, card counting is prohibited in many casinos, and players caught using this technique may be banned. Additionally, card counting is less effective in games with multiple decks or continuous shuffling machines.

Managing Your Bankroll and Expected Losses

Understanding the house edge and your expected losses is crucial for managing your bankroll in blackjack. By calculating your expected hourly loss rate, you can determine how much money you are likely to lose over time and adjust your bets accordingly.

To calculate your expected hourly loss rate, multiply the house edge by the number of hands you play per hour and your average bet per hand. For example, if you play 50 hands per hour with an average bet of 2.50.

By managing your bankroll and playing games with a lower house edge, you can increase your chances of winning and minimize your losses at the blackjack table.


In conclusion, casinos make money on blackjack through the house edge, game rules, and player mistakes. By understanding these factors and implementing strategies like basic strategy and card counting, players can reduce the house edge and increase their chances of winning. However, it's essential to remember that blackjack is a game of chance, and no strategy guarantees consistent wins. Enjoy the game, practice responsible gambling, and choose games with favorable rules to maximize your chances of success.

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