Topic: Thinking of starting a Bitcoin Casino. (Read 1083 times)

Quote from: NLNico on May 21, 2015, 12:48:50 AM

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH Tongue

This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

Yeah I got it now. So as per my current calculation, the edge is 0%.

1) You have to have a house edge or literally you are gambling every spin with the player. You have no edge to make a profit in the long run. YOU NEED at least 1% edge to survive imo.

2) Look up Kelly bankroll management for how much of a bankroll you want to have depending on what your max win will be.

x128

newbie

Activity: 14

Merit: 0

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH Tongue

This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

Yeah I got it now. So as per my current calculation, the edge is 0%.

NLNico

legendary

Activity: 1876

Merit: 1295

DiceSites.com owner

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH Tongue

This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

ClamCoin

sr. member

Activity: 448

Merit: 250

Quote from: ClamCoin on May 21, 2015, 12:30:54 AM

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

Of course u need a kind if license, so people would know that u are legit!

Certification by a 3rd party you mean?

Quote from: blumangroup on May 21, 2015, 12:32:26 AM

Quote from: x128 on May 21, 2015, 12:27:02 AM

Quote from: blumangroup on May 21, 2015, 12:22:45 AM

Your bankroll should be high, but that depends on what your bankroll is, if you have only 10 btc, you would have to make the max profit of your casino something around 0.1 to be safe, so it depends on your bankroll. If you want other tips, have a faucet for your site, do a few giveaways and people will come to your site

Faucets and giveaways bring people to your site but they are not the people that are going to make the site a profitable site. You are right about the bankroll you will have to know what your own bankroll is to then know what to keep the casino max profit at so you can always pay your winners.

I am really not sure if you need a license because the legally grey area, I would go with no with bitcoin casino's you don't need a license but 100% you will in future so would probably be best to start with one imo and be different to all the others Cheesy

I have a tip and that is you need to be able to fund a big advertising push once your site is live and working with nice deposit bonuses to attract the right players.

Thank you very much for the reply sir. Casino licenses in countries like Panama cost $60k/year AFAIK. In countries like US and all, its way more than that.

No problem at all

I have just remembered I have a friend who is based in Vegas and he is not running from there for the reasons you state. I will skype him this morning and I will pm you with his location and hope that helps. OOooo that license is expensive no wonder it is normally conveniently looked past lol

Thanks again! Your friend runs an online casino?

That is possible, but if it is possible that u also get an other certification. Like get https domain. And get some good reviews from good websites.

x128

newbie

Activity: 14

Merit: 0

Quote from: ClamCoin on May 21, 2015, 12:30:54 AM

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

Of course u need a kind if license, so people would know that u are legit!

Certification by a 3rd party you mean?

Quote from: blumangroup on May 21, 2015, 12:32:26 AM

Quote from: x128 on May 21, 2015, 12:27:02 AM

Quote from: blumangroup on May 21, 2015, 12:22:45 AM

Quote from: x128 on May 21, 2015, 12:27:02 AM

Your bankroll should be high, but that depends on what your bankroll is, if you have only 10 btc, you would have to make the max profit of your casino something around 0.1 to be safe, so it depends on your bankroll. If you want other tips, have a faucet for your site, do a few giveaways and people will come to your site

Faucets and giveaways bring people to your site but they are not the people that are going to make the site a profitable site. You are right about the bankroll you will have to know what your own bankroll is to then know what to keep the casino max profit at so you can always pay your winners.

I am really not sure if you need a license because the legally grey area, I would go with no with bitcoin casino's you don't need a license but 100% you will in future so would probably be best to start with one imo and be different to all the others Cheesy

I have a tip and that is you need to be able to fund a big advertising push once your site is live and working with nice deposit bonuses to attract the right players.

Thank you very much for the reply sir. Casino licenses in countries like Panama cost $60k/year AFAIK. In countries like US and all, its way more than that.

No problem at all

I have just remembered I have a friend who is based in Vegas and he is not running from there for the reasons you state. I will skype him this morning and I will pm you with his location and hope that helps. OOooo that license is expensive no wonder it is normally conveniently looked past lol

Thanks again! Your friend runs an online casino?

blumangroup

sr. member

Activity: 350

Merit: 250

'Slow and steady wins the race'

Quote from: blumangroup on May 21, 2015, 12:22:45 AM

Quote from: blumangroup on May 21, 2015, 12:22:45 AM

Your bankroll should be high, but that depends on what your bankroll is, if you have only 10 btc, you would have to make the max profit of your casino something around 0.1 to be safe, so it depends on your bankroll. If you want other tips, have a faucet for your site, do a few giveaways and people will come to your site

Faucets and giveaways bring people to your site but they are not the people that are going to make the site a profitable site. You are right about the bankroll you will have to know what your own bankroll is to then know what to keep the casino max profit at so you can always pay your winners.

I am really not sure if you need a license because the legally grey area, I would go with no with bitcoin casino's you don't need a license but 100% you will in future so would probably be best to start with one imo and be different to all the others Cheesy

I have a tip and that is you need to be able to fund a big advertising push once your site is live and working with nice deposit bonuses to attract the right players.

Thank you very much for the reply sir. Casino licenses in countries like Panama cost $60k/year AFAIK. In countries like US and all, its way more than that.

No problem at all

I have just remembered I have a friend who is based in Vegas and he is not running from there for the reasons you state. I will skype him this morning and I will pm you with his location and hope that helps. OOooo that license is expensive no wonder it is normally conveniently looked past lol

ClamCoin

sr. member

Activity: 448

Merit: 250

Of course u need a kind if license, so people would know that u are legit!

NLNico

legendary

Activity: 1876

Merit: 1295

DiceSites.com owner

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

x128

newbie

Activity: 14

Merit: 0

Your bankroll should be high, but that depends on what your bankroll is, if you have only 10 btc, you would have to make the max profit of your casino something around 0.1 to be safe, so it depends on your bankroll. If you want other tips, have a faucet for your site, do a few giveaways and people will come to your site

Faucets and giveaways bring people to your site but they are not the people that are going to make the site a profitable site. You are right about the bankroll you will have to know what your own bankroll is to then know what to keep the casino max profit at so you can always pay your winners.

I am really not sure if you need a license because the legally grey area, I would go with no with bitcoin casino's you don't need a license but 100% you will in future so would probably be best to start with one imo and be different to all the others Cheesy

I have a tip and that is you need to be able to fund a big advertising push once your site is live and working with nice deposit bonuses to attract the right players.

Thank you very much for the reply sir. Casino licenses in countries like Panama cost $60k/year AFAIK. In countries like US and all, its way more than that.

blumangroup

sr. member

Activity: 350

Merit: 250

'Slow and steady wins the race'

Quote from: coinableS on May 21, 2015, 12:03:59 AM

Your bankroll should be high, but that depends on what your bankroll is, if you have only 10 btc, you would have to make the max profit of your casino something around 0.1 to be safe, so it depends on your bankroll. If you want other tips, have a faucet for your site, do a few giveaways and people will come to your site

Faucets and giveaways bring people to your site but they are not the people that are going to make the site a profitable site. You are right about the bankroll you will have to know what your own bankroll is to then know what to keep the casino max profit at so you can always pay your winners.

I am really not sure if you need a license because the legally grey area, I would go with no with bitcoin casino's you don't need a license but 100% you will in future so would probably be best to start with one imo and be different to all the others Cheesy

I have a tip and that is you need to be able to fund a big advertising push once your site is live and working with nice deposit bonuses to attract the right players.

x128

newbie

Activity: 14

Merit: 0

Quote from: x128 on May 20, 2015, 11:57:07 PM

Quote from: coinableS on May 20, 2015, 11:41:57 PM

IIRC when Eric created and launched moneypot his bank roll was around 80-90 bitcoins and that was enough. I remember him saying it was nerve racking the first few days when he went to sleep wondering if someone would bust his bank roll by the time he woke up.

What you could do is limit the max bet size if you have a smaller bank roll, but don't make it too small or you'll lose potential players.

As for legality that's a huge gray area and a risk.

Good luck on your project.

Thank you for your informative reply.

How do BTC casino sites in general run (considering the legality issues) ?

I believe they must run as anonymous as possible. So godaddy, hostgator and other mainstream providers are definitely not an option. I would assume they run somewhere out of any US jurisdiction.

Yeah, I looked up a few popular sites, all of them were hosted in offshore locations.