Thread: Casino Odds
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Old 08-12-2005, 07:04 PM
AaronBrown AaronBrown is offline
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Join Date: May 2005
Location: New York
Posts: 505
Default Re: Casino Odds

My guess is there are two provisions to guarantee a house edge: you must make some minimum number of bets and you cannot withdraw the bonus payment in cash, it must be rebet.

For example, suppose you must make ten bets on roulette. If you make ten $10 bet, there's a 31% chance you'll make money. If you do, your average win is $31. The bonus is worth an extra $3.10 in that case. The 69% of the time you lose, you lose an average of $22. The 25% rebate is worth $5.50. Your overall expectation is negative $0.50, even after adding in the bonus. Plus you have an average of about $5 that must be rebet, there's another $0.25 for the house.

That assumes you make the minimum bets. If you do more, and almost everyone does, you'll lose more. Very little money deposited to on-line casinos is ever taken out. Look at their financial statements.
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