Introducing a ‘0%’ House Edge, but Can It Work?

Posted by Harry Kane on Thursday, September 7, 2017

If there is one thing that truly defines the online casino market, it is its continual drive to innovate and create new experiences for players.

This is particularly true in the age of blockchain, which has created a host of new opportunities in the form of anonymous gameplay, instant deposits and open source software. The latter is particularly interesting, as it was recently announced that the blockchain-inspired, software platform Ethereum could host a new and transparent casino brand that eradicates the traditional house edge.

We will explore this in further detail in this article, while asking whether such as casino can be sustained in such a competitive marketplace?

Is it Possible to Create a Casino with a ‘0’ House Edge?

Blockchain is the technology behind Bitcoin, and it is renowned for its ability to host decentralised applications and create a transparent record of financial transactions. The evolution of the Ethereum software represents the next logical progression, and one that has allowed developers to consider the creation of a transparent casino outlet.

As casino concepts go, this is arguably the most fascinating to emerge in recent times. The project, which is being referred to as ‘Edgeless’ by co-founder Tomas Draksas, aims to develop the world’s first decentralised online casino, which offers complete transparency to players and a gaming experience that is completely auditable and provably fair and for all concerned. So while the new casino will utilise industry staples such as the random number generator, the performance of this feature and its impact will be accessible for all to see.

As if this is not enough, the casino also pledges to eradicate the house edge on certain games. Some will argue that this is impossible that this means that there is no profit to be made from a 0% house edge, but this depends on the nature of the games that it is applied to. Games that require a certain amount of skill and strategy (such as blackjack, for example) have a house edge that is influenced by sub-optimal play and human error, which enables operators to profit from individual mistakes.

The new casino would minimise this, creating a more even contest between the individual skill of players and the opportunistic element that can be applied to all gambling disciplines.

The Bottom Line: Can the Edgeless Casino Compete with its Rivals?

In some respects, the development of such a casino would create a compelling proposition for players, while an Ethereum-based outlet would surely be able to compete with less transparent operators?

There are potential drawbacks, however, with a restriction on the number and range of games available one of the most prominent. After all, modern casinos have thrived on the diversity of experiences that they offer to players, so restricting this may well deter players who are used to traditional online casinos. The absence of slot games is also a huge issue, with some reports suggesting that these titles account for up to 80% of all online casino activity.

With the project still in Beta-mode, it is also exceptionally hard to determine the quality of the available gaming experience. Initial reports suggest that they will be relatively simple offerings, lacking the type of interaction and live dealer options that have breathed life into the virtual industry. This could make it hard for ‘Edgeless’ to compete in the contemporary market, unless it is able to augment its unique proposition with superior gameplay and diversity.