In the 3:2 blackjack game, the house edge, for player playing perfect basic strategy, is in the 0.5% range. That means for every $100 wagered, they take in, on average, $0.50. With 6:5 blackjack, that edge shoots up to almost 2%! So now you can expect to contribute upwards of $2 per $100 wagered to the house coffers. In blackjack the house edge is the statistical advantage the casino has over the player. At any blackjack table the dealer is the casino representative. By acting last in a hand, the dealer gains the advantage over the players by seeing their cards, actions and potential mistakes. Consequently, where the house edge against the perfect basic strategy player was once a measly 0.15%, the house edge on this game has spiraled to 1.45%. Given a choice between a six-deck game and 6:5 single-deck blackjack, avoid the latter. A six-deck shoe game is three times more advantageous than 6:5 single-deck blackjack. Earlier this year, I was asked to speak to a group of inexperienced players before their casino trip. One who had just started playing blackjack said he was confused over why the house had an edge.
Playing and mastering blackjack are two entirely different things. Mastery of blackjack starts with understanding the house edge and recognizing how it can impact your game. Understanding the house edge is vital for becoming a player that is capable of taking on the house. Without further ado, let's delve into how to reduce the house edge!
This guide will also show you the ins and outs of the house advantage, blackjack odds and blackjack strategy. You'll be ready to sit at the table and take on the dealer after you've read this!
What is the House Advantage?
Free Bet Blackjack House Edge
The house edge is the mathematical advantage that a casino has over its players. This edge varies from game to game, and is normally represented as a percentage and denotes the amount of return that the house can expect to receive over time. It also represents the percentage of losses that the player will likely incur.
Let's say that the house has an edge of 5% in a particular game. If a player bets €100, then the house will likely earn €5, while the player will likely lose €5. This does not mean that the player can't win more or turn a profit – it merely means that the house will take some money at the end.
What Percentage is the House Edge in Blackjack?
The house edge in blackjack is low relative to other games, with it being as low as 1% when a basic blackjack strategy is implemented.
In blackjack, the house edge comes from the dealer having a hidden card about which the player has to make assumptions. In addition, if the player busts, the dealer wins, even if they then bust in the same round. Learning blackjack odds and strategy makes this less of an issue.
Blackjack Odds
Admittedly, learning blackjack odds is a little more difficult than it is for other casino games. This is down to the randomness of the draw and the number of different combinations. Nevertheless, there are some ways of determining the odds of drawing specific cards. The initially probability of drawing a card of any value is 7.69%, based on there being 13 different possible options.
/GettyImages-917034570-5ad2aea3642dca003605302b.jpg "How to calculate the house edge in blackjack")
However, seeing as Jacks, Queens and Kings all have a value of 10 in blackjack, the odds of drawing a card valued at 10 is 4/13, which is a probability of 30.7% in percentage terms. As a result, the house edge can be reduced simply by having an idea of the odds of drawing certain cards. For example, if you happen to draw a Jack and a King, then you know that the odds of drawing yet another 10-value card are much reduced.
Reducing the House Edge in Blackjack
There are a variety of ways to reduce the house edge in blackjack. As previously mentioned, the simplest is to learn a basic blackjack strategy and commit it to memory before you play. A basic blackjack strategy is a set of rules, usually presented in a chart, which tells you how to play your hand after it is dealt. For example, if you are dealt a soft 17 (Ace, six), the chart compares it to the dealer's upcard and informs you of how to act. In some cases, using a basic strategy can reduce the house edge to just 0.5%! If you want to lower the house advantage, studying the basics of blackjack strategies is a good place to start.
In addition to basic strategy charts, several strategies have been developed to reduce the house edge in blackjack even further. Unlike the basic charts, which only focus on the total value of your hand, these strategies look at what cards make up your hand and give specific actions depending on the cards – they're called composition-dependent strategies.
Here's an example. If you have 16 and the dealer has 10, depending on the composition of your hand there are a number of different options. For instance, if you had three separate hands that all equaled 16, with the first comprised of a 10 and a six, the second of nine and seven, and the third of four, five, and seven. If you followed basic blackjack strategy, you'd hit on all these hands, but with a composition-dependent strategy, you don't hit on the final hand. This is because it is made up of low-value cards that would otherwise be needed to make a pat hand (under 21) from 16. The blackjack odds of drawing a low-value card are much lower than with the other two hands.
In most cases, by using a composition-dependent strategy along with the existing basic strategy charts, it's possible to reduce the house edge to as little as 0.18%, which is practically nothing!
Hopefully, you're now fully informed of what the house advantage is, how it applies to blackjack, and the steps you can take to reduce it. If you think you're ready to put the new knowledge to the test, why not play on one of our online blackjack tables!
Insurance in blackjack should be classified as a sucker bet. It is also classified as a side bet, available in most games of 21. It is offered when the dealer holds an Ace as their up-card. The bet is only open before the dealer checks or draws the hole card. For players not holding a natural blackjack, if insurance is taken, they must place an additional wager equal to half of their original wager. If the dealer goes on to draw a card valued at 10 to make blackjack, the insurance bet is paid out at 2:1.
For players who are holding a natural blackjack, they may also take insurance (called maximum insurance). Here the player forfeits the 3:2 payout for a winning blackjack hand in place for a guaranteed even-money (1:1) payout, regardless of what the dealer has. Hallmark casino free chips.
The reasoning behind insurance bets is when dealers have a visible Ace card, chances of them drawing a ten-valued card is just less than one in three, so this side bet ‘insures' against the possibility of such an outcome, to make up for the inevitable loss/push.
Insurance Is A Bad Wager
Picture this: the dealer is showing an Ace. Your hand, in comparison, is terrible. You've already had a few hard losses and don't fancy losing another round. Suddenly, the dealer asks you if you'd like to insure your bet. You already have a good hunch he/she is going to draw a 10 or face-card to make blackjack, so this sounds like a good way out. Or this: the dealer has a face-up Ace but you have a two-card natural blackjack. The 3:2 payout for your blackjack is mighty tempting, but if the dealer also draws a 10 and makes blackjack as well, taking a guaranteed win with maximum insurance, rather than risking a push, sounds like the best move.
Wrong and wrong.
At first glance, insurance bets do seem like good side wagers. They sound like a safe back-up plan in an intense game of blackjack, where a dealer two-card natural seems likely. And the way many blackjack dealers describe the bet makes it seem the best and most logical move you can make in the dreaded situation of a dealer face-up Ace. Unfortunately, this is an illusion and the casino is the only party who will ever make money from such a bet in the long run.
Don't let yourself be fooled by the way casinos word it or how other players may recommend it, whatever reason they try to offer: place your bets elsewhere. 'Insuring weak hands is necessary,' or 'it is only half of your original bet;' such rationale is based on the wrong sort of game-play logic. If you are relying too heavily on intuition or superstition to govern your hands, it's likely you won't be winning in the long-term.
From one blackjack enthusiast to another, steer clear of insurance bets: it's almost always a wasteful bet. We are going to explain to you what insurance bets really are, show you the odds behind the bet, and analyse a typical game of 21 to illustrate why it is a sucker's bet.
How Insurance Bets Work
As a side bet, insurance bets have nothing to do with the cards we have. While an insurance bet is commonly thought of as a wager which ‘protects' us in the case of a dealer blackjack, in actuality, it is simply a side wager on the dealer having/drawing a natural blackjack, and nothing more. Taking insurance while your own hand is a two-card natural (maximum insurance), or a crappy 15, makes no difference, because it has no bearing on it.
Let us assume we put down a $10 bet, are not dealt blackjack, and the dealer shows an Ace. If we take insurance, half of our original bet ($5) is put on the table to be used as insurance. Now we can't win both bets, so already we know one of them is going to be a loss. If the dealer's shows/draws a King as his/her second card, they have blackjack. This means we win $10 (get back a total of $15) from our insurance bet. But we've also lost our original wager of $10 because the dealer beats us with blackjack. So we have broken even in the end.
Examining the alternate outcome of the dealer's hand, let's say the dealer does not hit blackjack. This means we lose our insurance bet of $5, and play out our initial hand of $10. If we win, we make a $5 profit, is we lose, we lose $15 for the round. but it is essentially a wasteful side-bet in the long-run.
So the possible outcomes when taking insurance, using the above as an example, are as follows:
- A $5 win.
- Break even
- A $15 loss.
The possible outcomes when not taking insurance, using the above as an example, are as follows:
- A $10 win.
- A $10 loss.
Looking at the outcomes this way, you'd rather opt for a $10 win or $10 loss when the dealer holds an Ace, as opposed to a maximum win of $5 and a potential loss of $15, not just in the long run, but in the short-term too.
Additionally, in every full 52-deck of cards, four out of every 13 cards are worth 10 points (in blackjack); the cards which would lead to a dealer blackjack after showing an Ace. If you hypothetically wagered $10 as an insurance bet every time the dealer showed an Ace to ‘insure' yourself against the worst possible outcome (let's say 13 times), on average, you would win four of the bets (a profit of $80 with a 2:1 payout), and lose the other nine bets (loss of $90). The house gains $10, and you lose more money in the long-run.
This demonstrates the basic explanation as to why, in the long run, insurance is wasteful and you'd be much better served not taking it. The following sections drill further to explain the high house edge of insurance bets.
Insurance Bet Payout, Odds & House Edge
While no casino bets have payouts which are true reflections of their exact winning odds, as that would eliminate the house edge, it is important to note the differential between the payout and the actual winning odds (which is the number of ways of winning against the number of ways of losing), as this accounts for the house's advantage.
The payout of a regular insurance bet (when the player is not holding blackjack) is 2:1. A typical 52-card deck on an insurance bet play (only one player v dealer) has 49 unseen cards and three seen cards at the start of the game (dealer's Ace, and player's two cards). If we begin with the assumption our hand does not contain a 10-value card, then there are 16 cards worth 10 points in the deck, and 33 other cards.
Let us examine three possible scenarios, with an original initial wager of $20, and an insurance side bet of $10, to determine the true odds of the dealer hitting blackjack by drawing a 10-valued card:
House Edge In Blackjack
1/ We have no 10-value cards in our hand: there are 16 ten-value cards in the deck, and 33 other cards. So to get the actual odds of winning the insurance bet, we divide 33 by 16, which equates to 2.0625 to 1. So if all was fair in the casino world, we'd actually receive a 2.0625 to 1 payout, or approximately $20.60 from our $10 bet. But as the house needs to profit, this is not possible.
However, seeing as Jacks, Queens and Kings all have a value of 10 in blackjack, the odds of drawing a card valued at 10 is 4/13, which is a probability of 30.7% in percentage terms. As a result, the house edge can be reduced simply by having an idea of the odds of drawing certain cards. For example, if you happen to draw a Jack and a King, then you know that the odds of drawing yet another 10-value card are much reduced.
Reducing the House Edge in Blackjack
There are a variety of ways to reduce the house edge in blackjack. As previously mentioned, the simplest is to learn a basic blackjack strategy and commit it to memory before you play. A basic blackjack strategy is a set of rules, usually presented in a chart, which tells you how to play your hand after it is dealt. For example, if you are dealt a soft 17 (Ace, six), the chart compares it to the dealer's upcard and informs you of how to act. In some cases, using a basic strategy can reduce the house edge to just 0.5%! If you want to lower the house advantage, studying the basics of blackjack strategies is a good place to start.
In addition to basic strategy charts, several strategies have been developed to reduce the house edge in blackjack even further. Unlike the basic charts, which only focus on the total value of your hand, these strategies look at what cards make up your hand and give specific actions depending on the cards – they're called composition-dependent strategies.
Here's an example. If you have 16 and the dealer has 10, depending on the composition of your hand there are a number of different options. For instance, if you had three separate hands that all equaled 16, with the first comprised of a 10 and a six, the second of nine and seven, and the third of four, five, and seven. If you followed basic blackjack strategy, you'd hit on all these hands, but with a composition-dependent strategy, you don't hit on the final hand. This is because it is made up of low-value cards that would otherwise be needed to make a pat hand (under 21) from 16. The blackjack odds of drawing a low-value card are much lower than with the other two hands.
In most cases, by using a composition-dependent strategy along with the existing basic strategy charts, it's possible to reduce the house edge to as little as 0.18%, which is practically nothing!
Hopefully, you're now fully informed of what the house advantage is, how it applies to blackjack, and the steps you can take to reduce it. If you think you're ready to put the new knowledge to the test, why not play on one of our online blackjack tables!
Insurance in blackjack should be classified as a sucker bet. It is also classified as a side bet, available in most games of 21. It is offered when the dealer holds an Ace as their up-card. The bet is only open before the dealer checks or draws the hole card. For players not holding a natural blackjack, if insurance is taken, they must place an additional wager equal to half of their original wager. If the dealer goes on to draw a card valued at 10 to make blackjack, the insurance bet is paid out at 2:1.
For players who are holding a natural blackjack, they may also take insurance (called maximum insurance). Here the player forfeits the 3:2 payout for a winning blackjack hand in place for a guaranteed even-money (1:1) payout, regardless of what the dealer has. Hallmark casino free chips.
The reasoning behind insurance bets is when dealers have a visible Ace card, chances of them drawing a ten-valued card is just less than one in three, so this side bet ‘insures' against the possibility of such an outcome, to make up for the inevitable loss/push.
Insurance Is A Bad Wager
Picture this: the dealer is showing an Ace. Your hand, in comparison, is terrible. You've already had a few hard losses and don't fancy losing another round. Suddenly, the dealer asks you if you'd like to insure your bet. You already have a good hunch he/she is going to draw a 10 or face-card to make blackjack, so this sounds like a good way out. Or this: the dealer has a face-up Ace but you have a two-card natural blackjack. The 3:2 payout for your blackjack is mighty tempting, but if the dealer also draws a 10 and makes blackjack as well, taking a guaranteed win with maximum insurance, rather than risking a push, sounds like the best move.
Wrong and wrong.
At first glance, insurance bets do seem like good side wagers. They sound like a safe back-up plan in an intense game of blackjack, where a dealer two-card natural seems likely. And the way many blackjack dealers describe the bet makes it seem the best and most logical move you can make in the dreaded situation of a dealer face-up Ace. Unfortunately, this is an illusion and the casino is the only party who will ever make money from such a bet in the long run.
Don't let yourself be fooled by the way casinos word it or how other players may recommend it, whatever reason they try to offer: place your bets elsewhere. 'Insuring weak hands is necessary,' or 'it is only half of your original bet;' such rationale is based on the wrong sort of game-play logic. If you are relying too heavily on intuition or superstition to govern your hands, it's likely you won't be winning in the long-term.
From one blackjack enthusiast to another, steer clear of insurance bets: it's almost always a wasteful bet. We are going to explain to you what insurance bets really are, show you the odds behind the bet, and analyse a typical game of 21 to illustrate why it is a sucker's bet.
How Insurance Bets Work
As a side bet, insurance bets have nothing to do with the cards we have. While an insurance bet is commonly thought of as a wager which ‘protects' us in the case of a dealer blackjack, in actuality, it is simply a side wager on the dealer having/drawing a natural blackjack, and nothing more. Taking insurance while your own hand is a two-card natural (maximum insurance), or a crappy 15, makes no difference, because it has no bearing on it.
Let us assume we put down a $10 bet, are not dealt blackjack, and the dealer shows an Ace. If we take insurance, half of our original bet ($5) is put on the table to be used as insurance. Now we can't win both bets, so already we know one of them is going to be a loss. If the dealer's shows/draws a King as his/her second card, they have blackjack. This means we win $10 (get back a total of $15) from our insurance bet. But we've also lost our original wager of $10 because the dealer beats us with blackjack. So we have broken even in the end.
Examining the alternate outcome of the dealer's hand, let's say the dealer does not hit blackjack. This means we lose our insurance bet of $5, and play out our initial hand of $10. If we win, we make a $5 profit, is we lose, we lose $15 for the round. but it is essentially a wasteful side-bet in the long-run.
So the possible outcomes when taking insurance, using the above as an example, are as follows:
- A $5 win.
- Break even
- A $15 loss.
The possible outcomes when not taking insurance, using the above as an example, are as follows:
- A $10 win.
- A $10 loss.
Looking at the outcomes this way, you'd rather opt for a $10 win or $10 loss when the dealer holds an Ace, as opposed to a maximum win of $5 and a potential loss of $15, not just in the long run, but in the short-term too.
Additionally, in every full 52-deck of cards, four out of every 13 cards are worth 10 points (in blackjack); the cards which would lead to a dealer blackjack after showing an Ace. If you hypothetically wagered $10 as an insurance bet every time the dealer showed an Ace to ‘insure' yourself against the worst possible outcome (let's say 13 times), on average, you would win four of the bets (a profit of $80 with a 2:1 payout), and lose the other nine bets (loss of $90). The house gains $10, and you lose more money in the long-run.
This demonstrates the basic explanation as to why, in the long run, insurance is wasteful and you'd be much better served not taking it. The following sections drill further to explain the high house edge of insurance bets.
Insurance Bet Payout, Odds & House Edge
While no casino bets have payouts which are true reflections of their exact winning odds, as that would eliminate the house edge, it is important to note the differential between the payout and the actual winning odds (which is the number of ways of winning against the number of ways of losing), as this accounts for the house's advantage.
The payout of a regular insurance bet (when the player is not holding blackjack) is 2:1. A typical 52-card deck on an insurance bet play (only one player v dealer) has 49 unseen cards and three seen cards at the start of the game (dealer's Ace, and player's two cards). If we begin with the assumption our hand does not contain a 10-value card, then there are 16 cards worth 10 points in the deck, and 33 other cards.
Let us examine three possible scenarios, with an original initial wager of $20, and an insurance side bet of $10, to determine the true odds of the dealer hitting blackjack by drawing a 10-valued card:
House Edge In Blackjack
1/ We have no 10-value cards in our hand: there are 16 ten-value cards in the deck, and 33 other cards. So to get the actual odds of winning the insurance bet, we divide 33 by 16, which equates to 2.0625 to 1. So if all was fair in the casino world, we'd actually receive a 2.0625 to 1 payout, or approximately $20.60 from our $10 bet. But as the house needs to profit, this is not possible.
How To Calculate The House Edge In Blackjack
2/ We have one 10-value card and a card that is not worth 10: there are only 15 ten-valued cards remaining, and 34 others. 34/15 works out to be actual winning odds (chances) of around 2.2666/1; so ideally we'd like a 2.2666 to 1 payout, or approximately $22.60 from our $10 bet.
3/ We have two ten value cards in our hand: This means there are only 14 ten-value cards remaining and 35 others. Divide 35 by 14, and we get odds of 2.5 to 1; so ideally, $25 we would like to receive from our $10 bet. This is thus the worst possible hand to take the insurance bet (even though you should not take it at all), because the odds are so out of our favour.
Only with one deck and when the player is holding no 10s, is the house edge for insurance below 3%. It sky-rockets after that.
Insurance May Seem Ideal, But It Isn't
Many players argue on other sites, books and forums that when the shoe has more ten-valued cards than usual, insurance is a great way to make sure you cover potential loses and quite possibly earn a healthy payout. Yes, ultimately this would make sense if we knew when to take it, but the only way any player can know when such an ideal situation occurs is if you know how to count cards.
Essentially, while many players fall for insurance bets, they aren't profitable or wise, and have no bearing on our hand. Many players will also take maximum insurance with a two-card natural hand, rather than risk a push, but this is more disadvantageous in the long run, since the Ten in the player's blackjack means it is less likely the dealer has blackjack.
Insurance is taken far too often. Remain informed about its lack of tactical advantage or logic before playing. And besides, if you take insurance every now and then just because you have a hunch, you are playing on instinct, which is a dangerous method of play in blackjack, as you are abandoning basic blackjack strategy. We can play our hand based on the assumption the dealer has blackjack, but don't insure, as the odds are very much against us.
