The house edge differs significantly between American and European Roulette due to the number of zero pockets on each wheel. American Roulette features 38 pockets, including a single '0' and a '00,' which results in a house edge of approximately 5.26%. In contrast, European Roulette has only 37 pockets with a single '0,' leading to a lower house edge of about 2.7%. This difference means that players at the European wheel face better odds and lower losses over time compared to those playing American Roulette, where the additional zero increases the house's advantage and reduces the players' potential payouts.