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European Roulette is not only an exciting and highly entertaining game but it can be quite educational too. One of the main lessons you'll learn when playing it is the effect that the house edge can have on your payout percentages and the paybacks you earn on the various bets you make.
Here we'll take a look at the effects that the house edge can have on your game and explain how this applies across various European roulette bets, each with their own degree of risk. We'll also examine the widespread idea that all bets in European Roulette offer the same payout rate and how much truth there is to this notion.
Let's begin by looking at a straight-up bet where you can win a payout of 35x 1/37 of the time and are likely to lose a 1x bet 36 out of the 37 times you place it. This equates to a winning value of 0.946 (35* 1/37) and a losing value of 0.973 (1* 36/37). If we then add these values together, we get -0.0270 which equates to a loss of 2.7%. This figure gives you the house advantage in a straight up bet in a game of European Roulette.
If you want to place a corner bet you can expect a winning payout of 8x on four out of every 37 bets and a loss of 1x, 33 out of every 37 bets. If we follow the same calculation as above, this will also equate to a 2.7% house edge. This will be the case with any other possible bets you calculate in this game.
As you can see from the above examples, no matter what bet you make in a game of European Roulette, the house edge remains the same so the risk and reward ratios even out to give you the same payout rate no matter how you decide to play. This means that if you bet on a single number for a few rounds and then change and bet on three, the payout rate will automatically adjust and remain constant.
A great advantage to knowing this is that you can then concentrate on applying or developing complex roulette strategy and bankroll management techniques without having to worry about them having a negative impact on the overall house edge.