How Do Online Casinos Make Money: The Handle, House Edge & More

When you think about it, online casinos are kind of a blast. You can play without having to leave your home, and the chances of winning are high. What’s not to love? The thing is, casinos make money in a few different ways. The most important one is by taking a cut of the money you deposit. This is known as the house edge. In this article, we will explore how online casinos make money and what factors affect the house edge. We will also look at some more general strategies for playing online and increasing your chances of winning.

How Casino Operators Make Money?


Online casinos make money in a variety of ways. The most common way is by taking a percentage of the wagers made on their games. This percentage can vary, but on average it is around 3%. Another way is through the use of pay-outs, which are payments made out to players after they have won something. These pay-outs are usually based on a percentage of the bet, and can also vary depending on the game. Finally, online casinos can make money through advertising and affiliate programs. All these methods add up to create an overall income for online casinos.

Random Numbers and Betting Patterns

To make this business work, online casinos need to replicate human behavior. People are drawn to games with even odds because they believe that if they play long enough, they’ll eventually win. No deposit bonuses, free spins, or other inducements are needed to create this type of playing behavior. The house edge (the percentage of money that a gambler loses) is enough to keep people coming back for more.

However, online casinos aren’t limited by luck. Instead, they use sophisticated algorithms to create artificial random numbers and bet on specific outcomes in order to generate profits. This process is often referred to as “gambling.”

The goal of gambling is always the same – to generate more profit than you lost. And while players may not be able to control their luck, they can improve their chances of winning by following some betting patterns…

Paytable Basics

The paytable is the heart of any online casino. It’s where players place their bets, and it’s where all of the money that comes in goes. There are three main things that casinos look for when creating a paytable: the handle, the house edge, and variance.

– The handle. The first number on a casino’s paytable is always the handle – this is how much money players are expected to wager over the course of a given session. The amount of money bet on each hand plays a major role in how much profit a casino makes. A casino with high-volume hands (i.e. hands that are played frequently) will make more money than one with low-volume hands, since they’ll be able to charge higher fees for their services.

House edge. The second number on a casino’s pay table is called the house edge. This represents how much money the casino stands to make on every bet made by players. In most cases, the house edge is slightly more than 1%. This means that for every 100 dollars wagered by players, the casino will earn 99 dollars in real cash.

– Variance. Finally, casinos also look at variance when creating their paytables. This number reflects how much variation there is from week to week in winnings due to chance alone – something that can vary significantly from night to night or day to day at an online casino. Low variance is ideal because it means that players are more likely to see consistent profits, while high variance can lead to volatility and unpredictability in player winnings.

Bingo and Blackjack


Online casinos offer a wide variety of games that can be played through their websites. Games typically have one or more of the following: a betting limit, a wager requirement, and/or a house edge.

The betting limit is the maximum amount of money that can be wagered on a game. The wager requirement is the minimum amount of money that must be wagered in order to qualify for winning any given bet. And finally, the house edge is the percentage of profit that goes to casino operators instead of players.

Many popular online casino games like blackjack and roulette have fixed odds (meaning no matter what your hand is, there’s an equal chance you’ll hit or miss), meaning that the house edge for these games ranges from 0.5% to about 2%. But there are also some games where the house edge depends on how many decks are used (i.e., European Blackjack), which means that it can be considerably higher.


Online casinos make money in a variety of ways, but the method that generates the most revenue is undoubtedly through the use of house edges. The higher the house edge, the more money a casino makes from each bet made. In order to calculate how much money a casino will make from you based on your wager, it takes into account not only what you stake (in terms of cash or credits), but also any bonuses that are available and the game’s handicapping (or variance).