Casino, 4-D...Why house wins, sooner or later
LAST Tuesday's report, 'Overnight, and game for more', describes how two women visited Resorts World Sentosa and did very well at the casino.
One broke even. The other made $1,000, which doubled the money she started with.
It is a great result, considering they played for more than 10 hours each.
But winning is not that easy. Casino games work like this.
Each has a 'house edge'. The women played baccarat where the house edge is 1.2 per cent, assuming the gambler acts as 'banker'. Otherwise it is 1.6 per cent.
It means, on average, the casino keeps $1.20 for itself and pays $98.80 out of every $100 wagered.
It seems like a good deal compared to lottery games - like 4-D big - where the house edge is 34 per cent.
It means Singapore Pools keeps 34 per cent of all the money bet and pays out 66 per cent.
Actually, both are bad deals as you are certain to lose if you play long enough.
Surprisingly, however, you are more likely to lose at casino games than 4-D. It is because you play 4-D more slowly, buying a ticket just once or twice a week.
Casino games are faster. Baccarat, for example, plays at a rate of 60 hands per hour, which is one per minute.
Because of this, even a small house edge - like 1.2 per cent - means you can expect to lose half your money after one hour of play, 75 per cent after two hours, 90 per cent after three hours and 95 per cent after four hours.
Larry Haverkamp