Gambling business is based on a mathematical calculation, according to which CasinoChan or other online casinos always have an advantage over the player. This advantage is called the mathematical expectation.
What Is the Expectation
The mathematical expectation is the primary indicator that determines the odds of winning a particular game. In probability theory, it means the average probable value of a random variable. If the casino and the player have the same odds of winning (50/50), the expectation is 0. Why then does the casino always win, but the player loses? Because in reality, the odds are slightly greater than 50%, that is, the casino almost always has an advantage, expressed as a positive expectation. It is also called the House Edge.
Examples of Gambling With Positive Casino Expectations
The simplest example is roulette. This game was made popular by its easy-to-understand rules for beginners and great odds of winning. After all, the winnings at basic bets of red/black, even/odd is 50%. But is it really so?
No, this is a misconception because besides 36 digits and two colors in European roulette, there is a zero (“0”) in the green sector. So the player’s chances of success are reduced from 50% to 47.30% when betting on color or even/odd. And it’s not as bad as in American Roulette, where there is a double zero (“00”). In this case, you have to settle for a winning probability of 44.74%. That’s how casinos cheat at roulette beginners, who are led by the imaginary simplicity of the conditions and confuse roulette with “Heads or Tails”. In the case of roulette, a conditional coin quite often falls on the edge.
RTP and House Edge: How Casinos Make Money
Another illustration to answer the question of why the casino is always a winner is the player payout ratio in slots. It can be small (90%) or very large (99%), but it is not enough to win more than you lose.
We’re not trying to convince you that it’s hard to win on slots with a low percentage of return. Not at all. Remember that RTP is the ratio of winnings to total bets. If you win an amount on a slot, it means someone lost an amount 5-10% higher before that. You should not leave the slot machine after several unsuccessful bets.
As you can see, there is no trickery or manipulation here – just clear rules and characteristics that no one is going to hide from the players. There is no secret as to why the casino is always in the black and does not lose money in the long run. Just in the euphoria of gambling, you do not want to think about the math in the casino.
Mathematical Variance in Casino Games
And yet the hope of winning on the short range is quite real because of the variance. Dispersion is another notion of probability theory, which assesses the degree of risk and shows the length of the game cycle and the amount of winnings. The higher it is, the more unpredictable and stressful the game will be, but the winnings may also be pleasant. When the variance is low, the winnings are small, but they happen often. The variance partially compensates for the player’s negative mathematical expectation for a short distance.
Experts recommend: win after a few bets – take your winnings and leave the casino. Even if the winning is small. Because at a long distance you risk to lose everything, because the effect of dispersion is leveled.
