Physical casinos don't really need a bankroll to profit because they can work around it by asking players to pay entry fee or something like that but they found that hidden costs are always the most effective. People asked for money on entry may be discouraged and not willing to pay. Those who pay a share of profits or a hidden fee in every bet somehow take it much easier.
What I'm trying to say is that it's nor required but casinos did their homeworks and found that it's the best way to maximize profits.
Topic: House Edge -- Is It Really Required? - page 5. (Read 1248 times)
The initial idea is quite interesting though. The way I see it, if the casino has no edge, the only way it can win is when players go "tilt" or stop thinking rationally. If its bankroll is big enough to take on the richest customers and if you believe that in the long term players do not think rationally and will always bet their winnings, this idea could work.
At the end, in such a system, you are betting against rationality in players.
At the end, in such a system, you are betting against rationality in players.
I am not sure how house edge is working on most other games but in dicing it is too visible and from that I also had thoughts like why houses may go for zero house edge.
Because, for example with 0.5% housed edge they reserve additional 0.5% of rolling number numbers after the actual 50% of numbers for the X2 payout. If there are 1000 possible numbers to be rolled then they reserve 50 extra numbers after allocated 500 numbers. In summary house gets 550 consecutive numbers (like 1 to 550) and a gambler gets consecutive 450 (like 551 to 1000) numbers to decide who is going to win.
If you notice, very very rarely rolling number appears between 551 to 550 and all other times either house or gambler wins based on what number appears. If houses decide to give up those 50 numbers, I believe there cannot be any big differences given that gamblers continue their martingale and losing all the bankroll in the end.
Because, for example with 0.5% housed edge they reserve additional 0.5% of rolling number numbers after the actual 50% of numbers for the X2 payout. If there are 1000 possible numbers to be rolled then they reserve 50 extra numbers after allocated 500 numbers. In summary house gets 550 consecutive numbers (like 1 to 550) and a gambler gets consecutive 450 (like 551 to 1000) numbers to decide who is going to win.
If you notice, very very rarely rolling number appears between 551 to 550 and all other times either house or gambler wins based on what number appears. If houses decide to give up those 50 numbers, I believe there cannot be any big differences given that gamblers continue their martingale and losing all the bankroll in the end.
I don't know if you could ever find one casino that has zero house edge, P2P is the most possible.
Even if there is one, then it probably means it hasn't decided to scam its customers yet.
A casino basically has no income other than what the house edge makes for it.
Google ads, donations etc won't work out for a business like this.
Casinos are no charitable organisations - They are serious business and serious businesses always want to make money!
So the house edge will continue to exist as long as casinos will exist. House edge is one of the major revenue sources for the casino business. The percentage may definitely vary from one casino to another but it will remain in existence.
However, sometimes we may see some casinos without house edge but that will come with an expiry date. Usually some casinos choose to have zero house edge as a promotional activity to lure in new players and then use various reward methodology for retaining them. But I believe there will be only a handful of casinos who will be interested to forego such a lucrative revenue stream even if there bankroll is bigger than the total fund held by their players.
So the house edge will continue to exist as long as casinos will exist. House edge is one of the major revenue sources for the casino business. The percentage may definitely vary from one casino to another but it will remain in existence.
However, sometimes we may see some casinos without house edge but that will come with an expiry date. Usually some casinos choose to have zero house edge as a promotional activity to lure in new players and then use various reward methodology for retaining them. But I believe there will be only a handful of casinos who will be interested to forego such a lucrative revenue stream even if there bankroll is bigger than the total fund held by their players.
Dont know if this line do really fits out " the sheer size of its bankroll will be the house edge on its own" No matter how big it is, it cant really be considered nor treated as an house edge
But that's how things turn out to be
In fact, it is not very difficult to show how the bankroll size can be an effective house edge in real life. Imagine you are tossing a coin with your friend. When you lose you pay them a dollar, if you win they pay you as much. Pretty simple setup, isn't it? And it looks like your chances are equal. And they are, at least as long as you toss a coin a couple times or so. However, if you have only 10 dollars while your friend 100, their chances of busting you are 10 times higher than yours busting them. This is the "house" edge that a bigger bankroll provides
A businessman will always put up a business for profit. Even if he is as wealthy as Warren Buffet because its what drives them. The mains reason why they chose to put up a casino is that they know casinos make more money which is the primary goal. They may even evade taxes to have more of the profit.
I don't know if you could ever find one casino that has zero house edge, P2P is the most possible.
I don't know if you could ever find one casino that has zero house edge, P2P is the most possible.
Dont know if this line do really fits out " the sheer size of its bankroll will be the house edge on its own" No matter how big it is, it cant really be considered nor treated as an house edge.
Yes, it maybe bigger than the total of its players bankroll but doesnt mean that they wont consider out to put HE. If you are a business owner then what would be your primary motive on building this casino?
Of course, to make more money and come to think that if they do continue to have that HE-less thing then they would continually spending out or having the expense from maintenance -staff salary etc.
Is isnt sustainable for long run? no owner would get this kind of option.
Yes, it maybe bigger than the total of its players bankroll but doesnt mean that they wont consider out to put HE. If you are a business owner then what would be your primary motive on building this casino?
Of course, to make more money and come to think that if they do continue to have that HE-less thing then they would continually spending out or having the expense from maintenance -staff salary etc.
Is isnt sustainable for long run? no owner would get this kind of option.
This is not entirely my idea, so, as they say, don't shoot the messenger
Let's imagine an extremely wealthy casino whose bankroll size by far exceeds the bankrolls of all its players combined. Will this casino need a house edge to earn profits? As I see it, the house edge would make for more revenue flow, but it will still be making profits with a zero house edge simply because it will be able to stay in the game longer than any other player. Put differently, the sheer size of its bankroll will be the house edge on its own
I know every casino wants money, and it is unlikely we will see something described above in real life. However, it would be interesting to hear about examples which follow the logic of the bankroll size being a house edge in and of itself. If you know of such cases, especially when the advantage of this kind is subtle or even deliberately disguised, please share them with the inquiring minds here. Don't hide your knowledge under a bushel
Let's imagine an extremely wealthy casino whose bankroll size by far exceeds the bankrolls of all its players combined. Will this casino need a house edge to earn profits? As I see it, the house edge would make for more revenue flow, but it will still be making profits with a zero house edge simply because it will be able to stay in the game longer than any other player. Put differently, the sheer size of its bankroll will be the house edge on its own
I know every casino wants money, and it is unlikely we will see something described above in real life. However, it would be interesting to hear about examples which follow the logic of the bankroll size being a house edge in and of itself. If you know of such cases, especially when the advantage of this kind is subtle or even deliberately disguised, please share them with the inquiring minds here. Don't hide your knowledge under a bushel
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