Product
House-Banked Game
Definition
A casino game where the operator is the counterparty to all player bets, as opposed to player-versus-player products like poker or peer-to-peer betting exchanges.
Why it matters
The house-banked distinction matters for operator economics and regulation. House-banked games (slots, blackjack, roulette, baccarat, craps) generate revenue through structural house edge: the operator profits on average across enough volume. Player-versus-player games (poker, betting exchanges) generate revenue through commission or rake on transactions between players, with no operator counterparty risk on outcomes. The economics, technical requirements, and regulatory frameworks differ.
For B2B suppliers and operators, the house-banked classification determines product category, certification requirements, and license scope. Casino licensing typically covers house-banked games specifically; poker and peer-to-peer products are often licensed separately or under different conditions. The risk management approach also differs: house-banked games need RNG and game math certification; player-versus-player games need integrity monitoring (collusion detection) and rake/commission accuracy.
Frequently asked questions
Are sportsbooks house-banked?
Yes, traditional sportsbooks are house-banked: the operator is the counterparty to each bet and profits through bookmaker margin. Betting exchanges are the exception, operating as peer-to-peer marketplaces with the platform earning commission rather than acting as the counterparty.
Why does the distinction matter operationally?
Different risk management, different licensing categories, different technical certification, different operator economics. House-banked products require liability management and RNG certification; peer-to-peer products require integrity monitoring and commission tracking.