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Topic: Can bitcoin casino go bankrupt? (Read 2673 times)

legendary
Activity: 2562
Merit: 1414
August 03, 2015, 11:34:52 AM
#69
I guess bankroll management doesnt have any effect on bankruptcy

Wrong, bankroll management is a must. A proper kelly criterion should be followed and this is to ensure a high roller doesnt break the house in few split of bet thus this will be limiting the house's losses as well.

their bankroll depends on the wagered, the more wagered the site get the most income they get

Wrong, although the house has the edge over for the long run but it is not a guarantee that they house will keep on winning with the more people wagering there as there will be always a day or two where the house is completely out of luck so purely depends on the wagered status isnt right at all

and with a little development I think they wont be bankrupt

Wrong again, a site that put in poor development will not attract any player. Just take a look at how many poorly developed gambling site in this board that dont attract any player at all. Basically they just put their site on launch here and hope for the best which wont work here as there are alot more far better sites in almost every aspect

References :

Minidice : https://bitcointalksearch.org/topic/minidicein-20000-bets-made-weekly-giveaways-social-community-dice-1091286

Doodledice : https://bitcointalksearch.org/topic/doodledicedottk-new-dice-site-1104611

PatDice : https://bitcointalksearch.org/topic/patdice-simple-to-the-point-dice-site-1109238

SawDice : https://bitcointalksearch.org/topic/sawdice-the-new-age-of-dice-lets-play-a-game-1064019

CrimeDice : https://bitcointalksearch.org/topic/crimedice-smartphonecomputer-all-countries-faucet-1083359 ( and alot more, just hit the search button )
legendary
Activity: 1344
Merit: 1006
August 03, 2015, 11:33:26 AM
#68
I think it depends solely on the management. Look at what happened with Mt.Gox. The owner embezzled funds and it went bankrupt  Cool
well first of all mtgox wasnt a gambling site also it turned to scam so technically it did not go bankrupt, in my opinion casino cant bankrupt if it has enough funds
even if they don't have enough funds as long as they have a good site security and results that favors more on the site owner, they will not go bankrupt
full member
Activity: 182
Merit: 100
★YoBit.Net★ 200+ Coins Exchange & Dice
August 03, 2015, 11:15:42 AM
#67
I think it depends solely on the management. Look at what happened with Mt.Gox. The owner embezzled funds and it went bankrupt  Cool
well first of all mtgox wasnt a gambling site also it turned to scam so technically it did not go bankrupt, in my opinion casino cant bankrupt if it has enough funds
legendary
Activity: 1148
Merit: 1006
Black Panther
August 03, 2015, 10:50:23 AM
#66
If casino can't bankrupt, I will make a casino for the future to ensure my life forever.
We gamble on casino and casino also gamble on us ( the different is casino has something called " house edge " )

Hi,

I was always told that regular casino games are rigged so that the casino never loses money.
If the bitcoin casinos are using real random number generation then it is possible for them to
actually go bankrupt no?

Thanks.
legendary
Activity: 2604
Merit: 1036
August 03, 2015, 10:33:59 AM
#65
I think it depends solely on the management. Look at what happened with Mt.Gox. The owner embezzled funds and it went bankrupt  Cool
hero member
Activity: 640
Merit: 500
August 03, 2015, 10:32:41 AM
#64
It can be possible when a whale is lucky and win lots of btc.
When he withdraws almost all the funds from the casino bankroll, the casino has no funds to pay the other players.
The bitcoin casino is considered " bankrupt " he it defaults.

If the gambling site set the max win or max payout using Kelly formula, the limit will get smaller and smaller as the whale wins. The house could lose a significant % of the bankroll but not all.
well it depends on how much bitcoins the casino will decide that they want to keep safe, in my opinion its not the best idea for them to do as people wouldnt be that interested in it

They can choose to set their max win to 2x, 5x or even 10x Kelly if they want to take more risk and have a higher max win, but still the same applies.
sr. member
Activity: 420
Merit: 250
August 03, 2015, 10:25:04 AM
#63
It can be possible when a whale is lucky and win lots of btc.
When he withdraws almost all the funds from the casino bankroll, the casino has no funds to pay the other players.
The bitcoin casino is considered " bankrupt " he it defaults.

If the gambling site set the max win or max payout using Kelly formula, the limit will get smaller and smaller as the whale wins. The house could lose a significant % of the bankroll but not all.
well it depends on how much bitcoins the casino will decide that they want to keep safe, in my opinion its not the best idea for them to do as people wouldnt be that interested in it
hero member
Activity: 640
Merit: 500
August 03, 2015, 10:23:16 AM
#62
It can be possible when a whale is lucky and win lots of btc.
When he withdraws almost all the funds from the casino bankroll, the casino has no funds to pay the other players.
The bitcoin casino is considered " bankrupt " he it defaults.

If the gambling site set the max win or max payout using Kelly formula, the limit will get smaller and smaller as the whale wins. The house could lose a significant % of the bankroll but not all.
sr. member
Activity: 406
Merit: 250
August 03, 2015, 10:17:25 AM
#61
BTC casino can bankrupt, for example, if casino use free casino BTC faucet and players make a lot of BTC withdraw  Wink
well its nearly impossible to do that i guess, either casinos have to give away a lot of money for faucet claims or people have to be really lucky to win that much money to make a casino go bankrupt
legendary
Activity: 924
Merit: 1002
August 03, 2015, 10:01:44 AM
#60
Every business can be bankrupted. It's a question of management, solid business plan a luck as well. All can be screw down, even such business like Bitcoin casino. Some time ago I put some of ny BTC to Casino as investment. After a few days it went to red numbers, but in long term it was sucesfull investment.
legendary
Activity: 1344
Merit: 1000
August 03, 2015, 09:03:29 AM
#59
It can be possible when a whale is lucky and win lots of btc.
When he withdraws almost all the funds from the casino bankroll, the casino has no funds to pay the other players.
The bitcoin casino is considered " bankrupt " he it defaults.
legendary
Activity: 1288
Merit: 1043
:^)
August 03, 2015, 08:59:41 AM
#58
well with a house edge theres a extremely low chance a casino would go bankrupt as most make profit in the long run otherwise we wouldent see many dice sites lol

the house edge only makes it highly likely that the casino would profit in the long run; proper brm to set a max win is also required to make it unlikely the casino would go bankrupt.
hero member
Activity: 658
Merit: 500
August 03, 2015, 08:56:51 AM
#57
BTC casino can bankrupt, for example, if casino use free casino BTC faucet and players make a lot of BTC withdraw  Wink
legendary
Activity: 1218
Merit: 1000
August 03, 2015, 08:18:41 AM
#56
well with a house edge theres a extremely low chance a casino would go bankrupt as most make profit in the long run otherwise we wouldent see many dice sites lol
legendary
Activity: 1078
Merit: 1000
August 03, 2015, 08:04:53 AM
#55
With wrong bankroll management it can bankrupt.

I guess bankroll management doesnt have any effect on bankruptcy, but may be a little bit because their bankroll depends on the wagered, the more wagered the site get the most income they get and with a little development I think they wont be bankrupt
legendary
Activity: 1456
Merit: 1023
August 03, 2015, 07:35:06 AM
#54
If they are really out of luck then casino's can go bankrupt and if their calculations are flawed. Otherwise chances are too slim for that to happen.

Correct, according to me player got more chances of bankrupt than house can go bankrupt. If they stepup some thing wrong in their calculation then only it can possible otherwise no chance
legendary
Activity: 966
Merit: 1001
August 03, 2015, 06:47:39 AM
#53
damn I did not notice that it was the profit and not the payout.

So for each game they calculate a EV of 99%
Which means that the multiplier il calculated by (100%-house edge)/chance

Here for example for a chance of 6.6% you'll get 99%/6.6% = 15x payout

Exactly.

Most of the bitcoin dice games have a house edge of 1%, which means the house will have a profit of ~1% of the total wagered in the long run. That's how the legit sites are making their profit.
member
Activity: 572
Merit: 10
August 03, 2015, 06:43:07 AM
#52
damn I did not notice that it was the profit and not the payout.

So for each game they calculate a EV of 99%
Which means that the multiplier il calculated by (100%-house edge)/chance

Here for example for a chance of 6.6% you'll get 99%/6.6% = 15x payout
legendary
Activity: 966
Merit: 1001
August 03, 2015, 06:27:41 AM
#51
I had not noticed this house edge Shocked

Just checked on coinroyale's dice game

chance 6.5236%
payout 15.1758
bet 10

I rolled high, won and got 141.76, so 9.99 free credit are missing.

Does it mean that the house edge is (151.758-141.78)/(151.758/100) = 6.57% ?



Just check the site and the number 141.76 is your profit of that bet.
Since you have 6.5236% to get 151.76 back, the EV is 99% (=6.5236%*151.76/10) and the house edge is 1%.
legendary
Activity: 952
Merit: 1005
--Signature Designs-- http://bit.ly/1Pjbx77
August 03, 2015, 06:24:50 AM
#50
When there are a large number of players, there is a positive house edge and maximum bet limit is enforced. Casinos have different types of games, some games like slots bring in a lot of money and don't pay out that often. With a good mix of games, I believe it is very difficult for a casino to go bankrupt.
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