House Edge
House edge is the mathematical advantage a casino holds over players on each game, expressed as a percentage of each wager the operator expects to retain over time.
What it means in practice
House edge is the built-in statistical advantage that ensures a casino generates revenue over time. It represents the percentage of every wager that the operator expects to keep on average. A game with a 5% house edge means the casino retains $5 for every $100 wagered over a large sample size. This is the foundation of GGR (Gross Gaming Revenue) - the metric that drives RevShare calculations in affiliate programs.
Different games carry different house edges. Slots typically range from 2% to 10%, blackjack can be under 1% with optimal play, and roulette sits around 2.7% (European) or 5.26% (American). For affiliates operating under RevShare or hybrid commission deals, the house edge of games their referred players prefer directly impacts commission revenue. Players on low-edge games generate less GGR per dollar wagered.
House edge is related to but distinct from Slot RTP (Return to Player). RTP is the complement of house edge: a slot with 96% RTP has a 4% house edge. Understanding this relationship helps affiliates evaluate which casino products and game portfolios will generate the most sustainable NGR (Net Gaming Revenue) for their traffic.
How House Edge works across industries
See how house edge is applied in the verticals Track360 supports, from qualification logic and payout structure to the operational context behind each model.
How Track360 handles this
Track360 provides real-time reporting that lets operators and affiliates see revenue metrics broken down by player activity. Operators can configure commission structures that account for game-type performance, ensuring affiliate payouts reflect actual GGR contribution.
Frequently Asked Questions
Common questions about house edge, how it works in affiliate programs, and where it shows up across Track360's supported verticals.
House edge is the mathematical percentage of each wager that a casino expects to retain over time. A 4% house edge means the casino keeps $4 out of every $100 wagered on average. It is the inverse of RTP (Return to Player).
Related Terms
GGR (Gross Gaming Revenue)
GGR is the total amount wagered by players minus the total amount paid out as winnings. It represents the raw revenue an iGaming operator earns from player activity before any deductions for bonuses, taxes, or operational costs.
NGR (Net Gaming Revenue)
NGR is the revenue that remains after an operator deducts costs such as bonuses, taxes, and platform fees from GGR. It is a common base for RevShare calculations in iGaming affiliate programs.
Slot RTP (Return to Player)
RTP (Return to Player) is the theoretical percentage of total wagered money that a slot machine or casino game is designed to pay back to players over time. An RTP of 96% means that, on average, the game returns $96 for every $100 wagered, with the remaining $4 representing the house edge.
Betting Margin
The betting margin (also called overround, vigorish, or juice) is the built-in profit margin a sportsbook applies to its odds, representing the difference between the true probability of outcomes and the implied probability reflected in the offered odds.
RevShare (Revenue Share)
RevShare is a commission model where an affiliate earns an ongoing percentage of the revenue generated by their referred customers, typically calculated on a monthly basis.
Casino Hold Percentage
The casino hold percentage is the proportion of player wagers that the casino retains as revenue over time. It reflects the mathematical advantage built into casino games and directly determines how much GGR an operator generates from player betting activity.
Wagering Requirement
A multiplier condition that determines how many times a player must wager bonus funds before those funds become withdrawable. Wagering requirements directly affect operator bonus costs and affiliate RevShare earnings.
Continue Learning
Free structured courses that cover this topic and more.
How to Migrate an Affiliate Program Without Breaking Attribution
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CPA, RevShare, hybrid models, KPI-based deals, and multi-tier payout logic. How to pick the right structure for your program, negotiate without losing margin, and adjust as your affiliate base grows.
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