Have you ever wondered what “the house” is in gambling-speak? And what is meant by the statement, “the house always wins?”
The declaration “the house always wins” essentially translates into the fact that the casino company is in business to make a profit, irrespective of how many people win, when playing casino games like slots, blackjack, poker, and roulette.
Therefore, the question that begs is how does the casino “always win?” The succinct answer is that the odds have been arranged to ensure a stable income for the casino. This answer is also particularly relevant to online casino games, such as the vast number of slots game available to play online.
And, why do people keep on gambling when they know that the casino adds their margin or edge to each game. Casinos add, on average, between 1% and 5% to cover their operating costs and profit. In fact, they build their advantage into the rules of the game. This figure can be flipped on its head and looked at as the Return to Player (RTP) percentage. For example, if a slot game has an RTP of 95%, the maximum amount that you will be paid out for every £100 wagered is £95.
It’s vital to note that these numbers are nothing more than a statistical average. The more spins on a single slot machine, the closer the real results will be to the RTP. Which, in itself is an explanation of why people keep on gambling when they know that the casino operator takes its cut. However, the theory does not remove the unpredictability of playing the slots. The lack of predictability is determined by the internal random number generator.
How random is a Random Number Generator?
At this juncture, it is essential to note that if you want to play online casino games including poker, slots, blackjack, and roulette, you must sign up with an online casino like 1xbet casino, submit the requisite identity and proof of residence documents, and fund your bankroll with an initial deposit. You can sign in on sites such as efirbet.com.
It is also a good idea to understand what a random number generator (RNG) is, and what its primary function is.
In summary, a random number generator is a mechanical or electronic machine that is designed to randomly generate numbers. Random numbers form a vital part of all betting games offered by most casinos, both online and land based.
The theory behind electronic games like slot machines is that a random number generator is used to ensure that the result of every game is random. However, there are two types of random number generators. The mechanical RNG used in the electronic slot machines used in a brick-and-mortar casino is as close to 100% random as you will ever get.
On the other hand, the virtual RNG utilised in online slot games is not 100% random. The algorithms that generate the random numbers use a starting number or a seed number to begin the number sequencing process. Juxtapositionally, to generate true random numbers, the RNG needs to gather seemingly random data from the world around it.
Finally, the house’s edge is built into the RNG’s randomness. Therefore, no matter how much you win, you will always lose the house’s margin. Again, let’s consider the example of the slot machine game highlighted above.
The RTP for each slot machine is statistically set to be 95% of the total number of spins per slot machine. Therefore, the slot machine is not able to distinguish how much an individual gambler has spent gambling on it.
If a slot machine is set up to reward the person who spins the slots for the one-millionth time with a jackpot amount of 95% of every 1 million spins at £1 each, when the slot machine counter gets to the one-millionth spin, it will release the jackpot. It is the accumulative total that counts. Ergo, the person who happens to be the gambler at the time wins 95% of £1 million, or £950 000. This individual might have only wagered a total of £1. Juxtapositionally, gamblers who spin the slots 999 999 times at 1 each will all lose out.
Risk versus reward
The answer to the question posited in the title of this article: “Why do people keep gambling when the house always wins?” is found in this part of the discussion.
There is no doubt that the endorphin rush caused by the thrill of the risk of wagering money on the outcome of a game, is a major drawcard to many people. And while most people can gamble in moderation and know when to stop, there is a subsection of the population who cannot stop and continue to gamble the more they lose. The raison d’etre for their continued gambling is to win back earlier losses.
These people are well on their way to being addicted to gambling, and they will need to seek medical attention to help them overcome this addiction. And, because they cannot gamble in moderation, they should not even walk into a casino.
Statistics also show that people who come from lower socio-economic circumstances are more likely to gamble than people who are financially well off. Not only are these individuals attempting to increase their household income, but they are also participating in a high-risk activity to release the feel-good brain chemicals or endorphins. But this rule cannot be hard and fast because people from all walks of life and all socio-economic classes enjoy a night out at a casino.
However, for the majority of these people who gamble, it is nothing more than a hobby or a night of high-risk entertainment. These people normally set aside a sum of money like £100 and when it is finished, they head home. They are also more likely to avoid high-stakes poker games and only wager small amounts to make the £100 last the whole evening.
While the veracity of spending money on any gambling activities, including sports betting, is argued by many with extreme arguments both for and against the legality of gaming, it would seem that taking a middle road is prudent. Gambling is here to stay. And, rather than vehemently opposing it, it is preferable to encourage moderation and provide assistance to those who find themselves addicted to gambling.