Making the Most of Bad and Good Math in the Casino Business
In the gambling business, bad and good math play a huge role. Honest games that increase the house edge minimize short-term risk and ensure long-term profit for the casino. In the short term, the fluctuations are referred to as good or bad luck. Neither is true. The gambling business is based on mathematics. Here are some tips for making the most of the fluctuations:
First, the casino’s house edge and variance must be known. These two numbers determine the casino’s profit margins and cash reserves. These calculations are done by computer programmers and mathematicians who are called gaming mathematicians. Casinos don’t have this expertise in-house, so they outsource the work to specialists. Then again, it may not matter if you know these numbers for your favorite casino game. But knowing their meanings will make your gaming experience more enjoyable.
A house edge is the casino’s built-in advantage in a particular game. This is expressed as a percentage. The higher the percentage is, the higher the house edge. However, some games have a skill element to them, and players with high skill can eliminate this house edge. In these cases, the house edge is minimal. For example, in roulette, the house edge is 0.25%. While the house edge is low, players can still win big if they follow the rules.
Technology has also enhanced casino security. Casino surveillance is now routinely monitored by video cameras and computers. Some casinos use chips that contain built-in microcircuitry that monitor the wagers minute-by-minute. Roulette wheels are also regularly monitored to minimize statistical deviations. In addition, there are now enclosed versions of casino games, which do not require dealers. Instead, players can place bets by pushing buttons. Nevertheless, players are advised to avoid casinos that have catwalks above the casino floor.