How can casinos profit from investments? - page 2.

WEBcreator

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Quote from: Shogen on December 16, 2015, 12:16:54 PM

Regarding the bold part, a sensible gambling site owner should always set the max profit based on their total bankroll in real time. No matter if they have a big or small bankroll, they could lose some money but will not go bankrupt.

Max profit is usually on the same as the house edge of the games so if there is 100 btc bankroll and 1 % house edge then the max profit you can win in one roll is only 1 btc and so on

Shogen

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Quote from: BTCevo on December 16, 2015, 12:09:22 PM

Quote from: shanem on December 16, 2015, 09:56:11 AM

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

This might be true but mostly they want to get more fund just in case someone win big and they still can cover it so the site would not be bankcrupt. They always calculate it well how they will be profit from the investment and from the players too before they open a new casino. Thats why they will never loss

Regarding the bold part, a sensible gambling site owner should always set the max profit based on their total bankroll in real time. No matter if they have a big or small bankroll, they could lose some money but will not go bankrupt.

BTCevo

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Quote from: shanem on December 16, 2015, 09:56:11 AM

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

This might be true but mostly they want to get more fund just in case someone win big and they still can cover it so the site would not be bankcrupt. They always calculate it well how they will be profit from the investment and from the players too before they open a new casino. Thats why they will never loss

michinzx

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Quote from: shanem on December 16, 2015, 09:56:11 AM

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

this exactly, the casino takes both a percentage of the profit from player's losses and take a very small percentage cut from each bet, take a look at bitvest for example. in the long run, this should prove less risky and more profitable from the percent cuts for the casino compared to not accepting investments. plus, the prospect of investments attracts many people to a site i would bet.

shanem

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Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

erwin45hacked

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Quote from: Astargath on December 15, 2015, 02:29:58 PM

Quote from: erwin45hacked on December 15, 2015, 09:41:14 AM

Quote from: Astargath on December 15, 2015, 04:25:03 AM

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins,

This is very weird statements. The site has nothing to lose because most of the funds will be covered by investor so the site is kind like providing service for investor and keep charging 10 % comission for free and that is totally risk free assuming that the owner of the site has no stake in bankroll

How is that covered by investors? As far as I know investors have +EV when investing in a casino so in the long term they will end up winning more money than loosing.

You have answered this yourself. If investor keep winning alot then the site will as well because the site charge percentage for commission. if a 10 % profit commission then the site take 0.1 for every 1 btc profit so the site get 0.1 btc and the investor will only get 0.9 btc. Why is this so hard for you to understand?

Astargath

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Maybe dooglus would be so kind to explain the investment system, I'm sure he would explain it very detailed, I'm still confused, people keep saying they charge fees but I don't see how that does anything

Mars110

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Quote from: Astargath on December 14, 2015, 05:21:03 AM

I know investing in a casino will bring the investor profit in the long term, meaning that the casino will actually lose money in the long term so why are they doing it? What is the benefit they get from it?

I think, a casino is a very easy profit fields to find a very big advantage.

because in the casino that has a strategy is the owner and player is a tool to achieve profits that chill by the owner of the casino

MyBTT

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They usually charge a commission on gains etc.

Also the owners themselves obviously has investments in the company. They will gain even more with a combined, larger bankroll.

Erza

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Quote from: Superhitech on December 14, 2015, 08:32:25 PM

Quote from: KnightTrader on December 14, 2015, 07:38:34 PM

What is enough babkroll for site? I think that is unlimited/more is better.

If (most likely) site owners are seed investors of bankroll, their part will stay big for long time.

There's no such thing as an unlimited bankroll, but a higher bankroll is definitely better, as if someone gets lucky and wins a lot of money, the site won't go bankrupt and will possibly gain the money back from other users.

Do note that the bigger the bankroll is, the more money you will have to put in to make a profit. If you want to take a bigger risk but gain more profit, invest in a site with a smaller bankroll. If you want to be safer but gain money at a slower rate, invest in a site with a bigger bankroll.

May be there have unlimited bankroll. It means the bankroll will never end although people always winning there. Btw about the invest thing, why we should invest in smaller bankroll? That means it is a new site right? Actually what I know it depends on the percentage that they give to us higher investment sure you got more percentage right? So how do it affect with bankroll?

Astargath

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Quote from: DarkStar_ on December 15, 2015, 02:49:08 PM

They can increase their bank roll to allow larger bets.They also usually keep a fee from the investors profit. That way if they profit, both parties profit. But if the investor looses, the house looses nothing.

Can someone actually explain it detailed so I can understand? Repeating stuff that has already been said is not helping me, someone use numbers and explain it to me step by step because I still don't get it

DarkStar_

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They can increase their bank roll to allow larger bets.They also usually keep a fee from the investors profit. That way if they profit, both parties profit. But if the investor looses, the house looses nothing.

Astargath

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Quote from: erwin45hacked on December 15, 2015, 09:41:14 AM

Quote from: Astargath on December 15, 2015, 04:25:03 AM

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins,

This is very weird statements. The site has nothing to lose because most of the funds will be covered by investor so the site is kind like providing service for investor and keep charging 10 % comission for free and that is totally risk free assuming that the owner of the site has no stake in bankroll

How is that covered by investors? As far as I know investors have +EV when investing in a casino so in the long term they will end up winning more money than loosing.

Quote from: Buziss on December 15, 2015, 04:42:10 AM

Quote from: Astargath on December 15, 2015, 04:25:03 AM

Quote from: JumperX on December 14, 2015, 08:43:14 PM

casinos gain profit from investments thru fees, some casino takes around .5% - 1% of investors profit every xxx days/months so by that they can pay for all the site's expenses such as domain, hosting and staffs

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins, so they are not getting any profit, they are just simply giving less money to the investor

Nope. The investors' profit does not come from the house, but from the gamblers' loss. Say if a gambler lose 1 btc, the investors will share 0.99 btc and the site will take 0.01 btc as 1% fee.

Isn't that the same? When a gambler loses the casino is supposed to get 1 btc profit but instead they get less because someone invested in the casino.

gio3442

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Investments=bigger bet caps

Bigger bet caps=more earnings

Casinos that allow investments also hold fees from profits of investors (usually) and always are also invested in their platform with own funds.

hua_hui

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when the players win, the casino takes the loss from the investor pool. so they have no gain or loss. but if the players loss, they will take commission and the rest is divided among the investor. so it is kind of a win situation for casino. however, usually casino owners r also big investors too.

erwin45hacked

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Quote from: Astargath on December 15, 2015, 04:25:03 AM

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins,

This is very weird statements. The site has nothing to lose because most of the funds will be covered by investor so the site is kind like providing service for investor and keep charging 10 % comission for free and that is totally risk free assuming that the owner of the site has no stake in bankroll

futurebit640

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Quote from: Astargath on December 15, 2015, 04:25:03 AM

Quote from: JumperX on December 14, 2015, 08:43:14 PM

casinos gain profit from investments thru fees, some casino takes around .5% - 1% of investors profit every xxx days/months so by that they can pay for all the site's expenses such as domain, hosting and staffs

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins, so they are not getting any profit, they are just simply giving less money to the investor

It looks like your new to gambling. What you said is correct if many users or investors win lot of games but in actual scenario due to house edge players will not win always so gambling house will be the one at the end going to win. I saw only few gambling houses being closed not because of loses but not managing it properly but you can see many gamblers lost the money in casinos. So casinos will be always in profits.

RealPhotoshoper

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Quote from: Astargath on December 14, 2015, 05:21:03 AM

I know investing in a casino will bring the investor profit in the long term, meaning that the casino will actually lose money in the long term so why are they doing it? What is the benefit they get from it?

they get profit on short and long term,they decide it with some deal with the casino,its just what i think,the investor get some profit share from casino,from user on that casino,you know every gamble have lose and fee of witdraw.

Newcoins2020

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I'm not sure if what I'm going to say is correct, so correct me if I'm wrong. I think investors invest into casinos, so that when the player wins, they are able to pay them out. In the long run the house will always win so gamblers lose money and the house wins, the winning amount (profit) will go back to the investors. I believe the profits will be split between the casino owners as well as their investors.

Buziss

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Quote from: Astargath on December 15, 2015, 04:25:03 AM

Quote from: JumperX on December 14, 2015, 08:43:14 PM

casinos gain profit from investments thru fees, some casino takes around .5% - 1% of investors profit every xxx days/months so by that they can pay for all the site's expenses such as domain, hosting and staffs

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins, so they are not getting any profit, they are just simply giving less money to the investor

Nope. The investors' profit does not come from the house, but from the gamblers' loss. Say if a gambler lose 1 btc, the investors will share 0.99 btc and the site will take 0.01 btc as 1% fee.

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