What “house edge” means — in plain English
House edge is the ratio of your expected loss to your initial wager. If a game’s edge is 1%, then in the very long run a player loses about 1 unit per 100 wagered units on average. That’s the standard definition used by authoritative gambling math resources.
Closely related is Return to Player (RTP), the long-term percentage a game pays back. RTP = 100% − house edge. Regulators emphasize RTP is a theoretical long-term measure, not a promise for any single session.
How house edge shows up in crypto dice payouts
Crypto dice lets you pick a target chance to win (for example, “roll under 50”). If your chance is pp, the “fair” (no-edge) payout would be 1/p1/p. With a house edge ee, many dice sites pay roughly (1−e)/p(1-e)/p.
A classic example is the 50% bet. Fair odds would pay 2.00×; with a 1% house edge the win pays 1.98× — exactly 1% less than 2.00×. Multiple operators and community explainers document this specific 1.98× example for 50% dice, which is why you see it across crypto dice UIs.
Leading “Originals” dice titles publicly target about 99% RTP (≈1% edge), including Stake Dice. Always confirm on the live game page because that’s where the operator states the current RTP.
Worked examples at 1% edge (≈99% RTP)
- 50% chance → payout ≈ 1.98× (not 2.00×).
- 25% chance → payout ≈ 3.96× (not 4.00×).
- 10% chance → payout ≈ 9.90× (not 10.00×).
These numbers are simply the fair payouts reduced by ~1%. The edge doesn’t change your win probability; it trims the multiplier you get when you do win.
“Provably fair” vs edge: fair randomness ≠ positive expectation
Provably fair dice commits to a hidden server seed (hash shown up-front), combines it with your client seed and a nonce via HMAC to generate each roll, then reveals the seed so you can verify the outcomes yourself. For example, Primedice documents HMAC-SHA512 with seed/nonce mapping. This proves integrity of each roll — at the stated RTP — but it does not remove the house edge.
Put differently: provably fair tells you the game didn’t cheat on randomness; house edge tells you the payout table is slightly under true odds by design. Both can be true at once.
RTP, variance, and your bankroll: what to actually expect
RTP is long-run. In the short run, variance dominates: you can have big upswings or downswings even in a 99% RTP game. Regulators explicitly warn not to read RTP as a near-term guarantee. Use small, fixed bet sizes and session limits so a cold streak doesn’t wipe your bankroll while variance plays out.
How to check a dice game before you bet
- Confirm the stated RTP/edge on the official game page (look for ~99% on leading “Originals” dice).
- Open the provably fair page and verify the ingredients: server seed (hashed first, revealed later), client seed, nonce, and the HMAC algorithm used to derive the roll.
- Understand that provably fair complements, not replaces, regulated RNG testing. Many licensed operators also get independent RNG certifications (e.g., eCOGRA) and adhere to technical standards like GLI-19 for interactive gaming systems.
Quick math: estimating your long-run cost
If you wager a total of 2 BTC on a 99% RTP dice game, the long-run expected loss is roughly 2 BTC × 1% = 0.02 BTC. That expected value doesn’t depend on betting systems (Martingale, Paroli, etc.); systems only change the volatility of your path, not the edge embedded in payouts.
Choosing “better” dice games
- Prefer transparent RTP: pick titles that state ~99% RTP on their official page and avoid those that hide payback info.
- Prefer clear provably-fair docs: look for a detailed implementation page (algorithm, seed roles, nonce behavior) like Primedice’s.
- Prefer certified platforms where available: independent RNG certification (eCOGRA) and conformance to GLI-19 add assurance beyond provable fairness.
Safer-play resources
If gambling stops being fun, stop. UK and many other regions offer free self-exclusion tools (e.g., GAMSTOP for UK-licensed online sites) and support via charities like GamCare. Use deposit/time limits and breaks.
FAQs
Why doesn’t a 50% dice bet pay 2.00×?
Because the house edge reduces the fair payout. With a 1% edge, the 50% bet pays 1.98× — documented by operators and long-running dice sites.
Does provably fair mean zero house edge?
No. Provably fair guarantees verifiable randomness (seed + nonce + HMAC) — it does not change the payout table or the edge.
Is 99% RTP the same everywhere?
No. Some providers set different RTPs. Always check the live game page; Stake Dice, for example, states 99% RTP/1% edge on its official page.
Why do regulators still talk about RNG testing if games are provably fair?
Provably fair is player-verifiable; regulatory testing (e.g., eCOGRA, GLI-19) is independent lab assurance that systems and RNGs meet technical standards. Good operators do both.
