So, i recently went to a local gambling place here in our city and i participated in this game called color game. In this game you will choose from five different colors and if you win, your price will be times four of your bet. The chances is obviously 20% and i myself admitted that i get hooked up to it immediately. Who else dont want an easy money by the way. What i observe is that nobody wins in gambling in any other way except if you are the owner of the said stall. Your chances of winning is just 20% and the initiator has 80%. Imagine that big?. Even though they quadruple your money, their winning steak is also higher than what they give to you. Plus, psychologically, if people experienced winning , they will not stop betting until they do not have enough money to bet. On the other hand, if they win, they will return the other day to gamble again. Lucky to them if they win again but most of the time, they are not.
I do not truly understand how can this game you described be profitable to the local gambling place in your city, because if there is only five different colors in the game, if a gambler pick any of the five colors and strike it, he will receive a profit of x4 times for his winnings.
The calculation will goes in this way - If a gambler decides to place $10 USD on one color, he will win $40 USD if the color he pick strikes on the final result, and his initial betting amount is $10 USD + $40 USD profits = $50 USD returned to him.
This game does have only 5 colors as per described by the OP, so basically this game have no house edge advantage for the casino? If a player does place his bets on three different colors before a game starts, his winning chances would be 60%, and I do not understand why would a casino design a game without the house edge advantage in the first place, as both sides are simply relying on luck as the main factor to decide who would be the winner in the long run.
Yes but thats the strategy. Some place bets on three colors to increase chances of winning. But only few people do this. Some just bets on one to avoid losing more if the winning color doesnt fit to their three choices. This is the deal. If one puts $10 on the first color, even the banker quadruple their bets, the four other color has higher bets that can fill the winning color plus having an excess. There are also times that there are no bets in the winning color. So thats a jackpot.