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pzhon casino sets up a coin toss game, heads the casino wins, tails the player wins. The coin used is absolutely fair. However, pzhon casino charges a $1 fee per toss and allows a $100 max bet, giving it at least a 1% house edge.

pzhon casino figures this 1% +EV coin toss game will allow it to win the world eventually, if people will toss the coin enough times.

Kerry Packer hears about the game, cleans up some spare change he finds underneath a seat cushion, and shows up at the casino with $15,000 ready to flip coins at $100 a pop.

pzhon casino figured it didn't need much money to become a winner with its locked in 1% edge, and only has a $200 bankroll. pzhon greedily eyes Kerry Packer's $15,000 bankroll and figures after 15,000 or so tosses of the coin, all that money will be his.

Somewhere within the first 100 tosses of the coin, Kerry Packer manages to put together a string of three tail tosses in a row (3 tails in a row isn't really hard in 100 tosses, is it?) and wipes out pzhon's bankroll and all the accumulated $1 per toss profits gained up to that point.

Cursing what he figures to be pure luck to overcome his 1% house edge, pzhon can't believe he is broke. He convinces some investors to put up another $200, and goes up against Kerry Packer's bankroll which is now $15,200.

Again, pzhon is charging $1 per $100 toss and thinks he has Packer by the shorts. Again, somewhere in the first 100 tosses, tails outnumber heads by 3, and again pzhon goes bust.

How many times will pzhon have to lose his $200 bankroll to realize his 1% edge is useless against a much larger bankroll, when the bet size is $100????

Is Chapter 13 close behind, or will someone else take over the coin toss game and adjust the maximum bet size?
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