Learn · Reasoning
The House Edge Across Products
Compare operator margin across sportsbooks, slots, lottery, and loot boxes — rank products by expected loss per dollar.
Study
Vig, RTP, takeout, drop rate — one scale.
Different industries use different words for the same idea. A sportsbook calls it the vig. A casino calls it RTP or hold. A lottery calls it takeout. A gacha game calls it drop rate.
Under all the labels is one number: the share of every dollar wagered the operator keeps over the long run.
Four terms to know
Vig (sportsbook). On a -110 / -110 line, each side implies 52.4%. Together that is 104.8%. The 4.8 points over 100% is the vig — roughly 2.4% expected loss per $1 bet at fair coin-flip odds.
RTP (slots). Return to Player. A 95% RTP slot keeps 5 cents per dollar on average. House edge = 100% − RTP.
Takeout (lottery). The state keeps 35–50% of scratch-off sales before prizes. A $5 ticket with 50% takeout costs you $2.50 in expected loss before you scratch.
Drop rate (loot boxes). A 0.6% featured pull means ~167 tries on average — often $80+ at typical pricing.
A slot advertises 95% RTP. House edge per spin is: