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For a given probability of winning a bet, there is a mathematically correct payout that will lead to players just recovering their bet amounts in the long run. However, online casinos need to make money in order to meet their costs and provide nominal returns to their investors. Therefore the payout ratios for the various bets will be marginally less than the mathematically correct payouts. This difference is referred to as house edge. House edge can be defined as the percentage of a unit bet that on online casino expects to take in the long run. The calculation of the house edge for a simple roulette bet is explained.
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