| Posted by: croupier at July 21, 2001, 6:20 am | | Topic: Does any casino beat Microgaming's payout percentage? Forum: Winner Online |
Hi sammcdon,
Trader explained this in an earlier post you made, but let's see if I can make it a bit more clear.
To make the calculations simple for me I will assume a 50% payback instead of 98% (or whatever the casino payback rate is).
If you buy in for $200 and play through the $200 once then you will recieve 50% back in 'winnings'. Your total bankroll is now $100.
If you play through this $100 again then you will receive back $50. If you play through again and then cash out you will receive a cheque for $25
You have played through 3x and received 50% payback each time, (50+50+50)/3 = 50%
The casino has therefore paid out at a rate of 50% but the player has lost 87.5%
If you replace the 50% in my calculations with the casinos payback rate (about 98%) then you will see that their profit is higher than their percentage payback.
If every player cashed out after betting through their bankroll once, and then bought in again with new cash then the 2% house edge that the casino claims would actualy be a 2% profit. However, the amount of buy-ins by players would be far far greater.
Of course, you will rarely get the exact payback stated by the casino every time you bet your bankroll once - sometimes you'll lose more, and sometimes you'll win.
If you have any problems with my explanation then please make another post and I'll try to clear it up.
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Craig Miller - Casino Help
www.casino-help.com
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