How Do Casinos & Bookmakers Calculate Odds?
There is still a rumor among many casino players that the games in the casino are unfair. Some even claim that they are rigged. It is also claimed that the house advantage is to blame.
First of all, the house advantage describes a statistical value. This value refers to the game and tells how big the probability of winning is. It is often expressed as a percentage. The house edge differs from game to game. Here in the Betvictor casino review you can find all the important information.
What does house advantage mean?
If you look at an online casino for a brief moment like a company and thus as an employer, it immediately becomes clear that fixed costs are incurred here as well on a monthly basis. These fixed costs include, for example, the costs for the licenses of the games as well as the costs for the salaries of the employees.
General costs, which include electricity and water costs, for example, are also part of these expenses. These costs are covered solely by the income from the online casino games.
It is thus clear that it is existential for every online casino to generate corresponding profits. If this does not happen, the casino will eventually go bankrupt. To prevent such a loss business exists the house advantage.
To prevent misunderstandings: The house advantage is a complicated formula for calculating a statistical value. It is calculated with the help of the payout ratio.
The payout ratios
Every game in the online casino has its payout ratio, or RTP (Return To Player). The payout ratio is always given as a percentage. It indicates which part of a player’s stake is paid out again on average.
How to calculate the payout percentage
To calculate the payout ratio, a minimum of 10,000 game rounds are taken as a basis. The rate is finally calculated from the total payout of these game rounds. In the online casino, most slots offer a RTP between 95 and 97%.
Who calculates the payout ratios?
Not only slots have payout ratios, but all other games do as well. Whether it is a video poker game, a blackjack variant or roulette, each game has a certain payout ratio. On the one hand, the payout ratio is calculated by the developer of the respective game and on the other hand, the online casinos always commission external tech companies that are specialized in this work. These companies check the payout ratio of the games on the one hand and calculate it on the other hand.
The bookmakers and their odds calculation
The basis of every odds calculation is again the probability calculation. Here we look at the probability of a win, a draw or even a defeat. The main focus here is on the so-called probability of occurrence.
But of course it is not enough to have a guess here. This is about real expertise and keeping or keeping an eye on statistics.
This is important to know
What is the current performance of the team? Are there any injured people in the team? Is the team struggling with a weakness? Or also, how is the mood in the team? Has anything changed in contrast to the last game?
Knowledge about the opponent is also of great importance. Bookmakers need to keep up to date on a daily basis to get a clean performance estimate. Bookmakers’ odds are always based on sound decisions made because of their expertise and optimal analyses of the respective sports.
However, even these well-founded calculated odds are in a way a kind of random experiment. It is impossible to predict in a soccer match, for example, whether and how many goals a team will score.
Only the external factors provide certain probabilities here. Nevertheless, a whole series of unpredictable events can always occur very quickly.