Introduction

Some casino softwares offer one or more instant win hi-lo games, which involve correctly guessing whether the next hand will be higher or lower. The game's low variance can make it a better choice than slots when table games are not allowed.

 

Rules and Play

There are many variations of hi-lo games. Most games start out by listing a number or a card rank. The player must decide if the next hand will be higher or lower than the first value. In card-based hi-lo games, aces are treated as the lowest possible card. A correct guess pays according the the listed payout. The payout values vary from one starting number to the next. In the screenshot above, the starting number is 25. The player must guess if the next number will be more than 25 or less than 25. If he wins either bet, the game pays 193.83. Both payouts have the same house edge because the starting number of 25 is midway between the range of 1-49.

Many hi-lo games are designed such that it is impossible to draw a tieing value on the following hand. The games that do permit ties may treat them differently. Some return bets on a tie, and some treat a tie as a loss. Similarly some games are designed such that it is impossible to draw the minimum or maximum value on the first hand, and the games that do permit these hands may treat them differently.

A common hi-lo variation is what I call a "length game." In these games, the player does not get a payout unless he completes a sequence of correct high/low guesses. The player has the option to either take the win or continue playing with each sequence completed correctly. There are increasing payouts with each sequence completed correctly, so continuing until reaching the maximum payout reduces the house edge.

 

Strategy

The high and low bets of typical hi-lo games have the same house edge. However, they have very different variances. Choose the lower variance bet to complete a wagering requirement, which is the choice that is more likely to occur (the one with the smaller payout). And choose the higher variance bet to quickly reach a target gain, which is the choice that is less likely to occur (the one with the larger payout).

Some games give the option to continue playing using the previous win as a starting point, instead of taking the win. This option increases the house edge (per initial bet) and variance, so I recommend instead taking the win, unless repeat bets count as multiple wagers and the next hand is more desirable than typical.

Length games, such as Wagerworks Underground Hi-Lo and Chartwell Mad-Matterhorn, give the option to either take the win or continue playing until reaching the next goal. In all cases I have seen, continuing has the lower house edge.

 

House Edge

Many hi-lo games are designed such that the house edge is approximately the same for all starting numbers, regardless of whether you choose high or low. However, with other games, the house edge may vary from one bet to the next. You can manually check the house edge using the following equation: House Edge = {(Payout on Win - Starting Bet) * Chance of Win - Chance of Loss * Starting Bet} / Starting Bet.

A summary of house edges for hi-lo games that are available with the common softwares is below:

Most Wagerworks Hi-Lo games -- The combined house edge for all bets is 3.00%. All bets except for 2 and 48 have a house edge of 3.085%, including the screenshot at the top of this page. A starting draw of 2 and 48, results in a lower house edge of 1.10%.

Wagerworks Multiplier -- Most bets have a house edge of between 3.00 and 3.01%. The maximum selection has a house edge of 2.95%.

Wagerworks Underground Hi-Lo -- The payout information lists a house edge of 2.44% To archive this house edge, you must always continue to the next row.

Chartwell & World Gaming Hi Lo -- The house edge varies from one bet to the next. I believe the combined house edge is near 6%.

Net Ent Hi Lo -- Most bets have a high house edge between 10.5% and 11%, making it the 2nd worst bet in the casino, after bingo.

 

Variance