Roulette Bets

How To Find The House Edge For Any Roulette Bet

  Let B = amount bet
  W = amount you stand to win
  y = payoff odds   =   amount won per dollar bet     [ so that   W = yB ]
  p = probability of winning
 
  E = expectation
  = expected value of W
  = Wp   +   ( - B ) * ( 1 - p )
 
  Replacing W by yB, we get
 
  E = yBp   +   ( - B ) * ( 1 - p )   =   yBp   -   B   +   Bp   =   B * ( yp - 1 + p )
 
  E / B = -1   +   p( y+1 )
 
  H = House Edge
  = | E / B |
  = 1   -   p ( y + 1 )
 
  The value of y depends on the type of bet, and casinos use these values:
  Bet on red or black y = 1
  Bet on a single number y = 35
  Bet on two numbers y = 17
  Bet on three numbers y = 11
  Bet on four numbers y = 8
  Bet on five numbers y = 6
  Bet on six numbers y = 5
  Bet on twelve numbers y = 2

For the "Five Number" bet,

  y = 6   and   p = 5 / 38
  H = 1   -   p ( y + 1 )
  = 1   -   ( 5 / 38 )( 7 )
  = 1   -   ( 35 / 38 )
  = 3 / 38
  » 7.89%

For any "two number" bet,

  y = 17   and   p = 2 / 38
  H = 1   -   p ( y + 1 )
  = 1   -   ( 2 / 38 )( 18 )
  = 1 / 19
  » 5.26%

You can verify the following fact:

  For all bets other than the five-number bet,   H   =   1 / 19.