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Exploiting Loss Rebates on Single Zero Roulette

Casinos use loss rebates as an incentive to draw high-limit play. The player who wins gets to keep 100% of his winnings. The losing player is given back a certain percentage of his losses as a direct cash rebate. Typical rebates range from 5% up to 20%, depending on the player’s bankroll and average bet. Loss rebates originated as a way to get players to quickly pay off a line of credit, but in recent years have become an expected perk of high-limit play. Many casinos now offer loss rebates on the big four: baccarat, blackjack, craps and roulette.

By
Eliot Jacobson Ph.D.
May 24, 2013

The Third Loss Rebate Theorem

I thought I had completed my work on loss rebates when I published the First Loss Rebate Theorem (LRT1) in this post. Then my dog gave me a good idea on how to get a closed form for the quit-win and quit-loss points and it worked. That became the Second Loss Rebate Theorem (LRT2), given in this post.

By
Eliot Jacobson Ph.D.
February 16, 2014

Fact-Checking an Article on Donald Johnson in CHANCE Magazine

This post concerns significant errors in the article “Examining a Gambler’s Claims: Probabilistic Fact-Checking and Don Johnson’s Extraordinary Blackjack Winning Streak,” written by W.J. Hurley, Jack Brimberg and Richard Kohar [HBK]. This article appeared in the February, 2014 issue of CHANCE magazine, Vol. 27, No. 1, pages 31-37. Two of the authors, Hurley and Brimberg, are professors in the Department of Mathematics and Computer Science at the Royal Military College of Canada.

By
Eliot Jacobson Ph.D.
March 25, 2014

The Second Loss Rebate Theorem

Loss rebate analysis has been a common topic in this blog. There's a good reason: it is one of the top advantage play opportunities worldwide. Exploiting loss rebates is how Don Johnson crushed Atlantic City. Previously, my key theoretical result was when I proved the Loss Rebate Theorem and gave a spread sheet to help work with that theorem.

By
Eliot Jacobson Ph.D.
February 13, 2014

The Mathematics of Baccarat Non-Negotiable Chip Programs

While much of the U.S. market shuns baccarat, it is the number one game internationally. The size of the wagers players make is stunning to watch. In Macau, for example, it is difficult to find a table with a minimum wager less than $100. The casinos are packed full of what we in America would consider to be high-rollers. And marketing understands that high-rollers want perks and cash-incentives for their play. Asian casinos use an essentially perfect solution to line up theoretical win with cash-incentive: non-negotiable chips (NN).

By
Eliot Jacobson Ph.D.
June 18, 2014

The Challenges of Match Play

Match play has been around for years as a staple of marketing used to attract table game play. Nevertheless, there are still a number of misunderstandings and misconceptions about its value, its use, and its vulnerabilities. In light of the explosion of free play for slots, there is pressure to issue more match play to keep up. Just as determining the cost of free play is a challenge, match play coupons are also a source of complicated and important questions.

By
Eliot Jacobson Ph.D.
June 13, 2013

How to Use Card Counting at Other Casino Games?

Card counting has been around since the days of the dinosaurs (in casino years). Edward Thorp published his infamous book on card counting, "Beat the Dealer," in 1962. Since that time, hundreds of books on card counting have been written. Movies such as Rainman, "21" and The Hangover have featured card counting. Documentaries about card counting include The Hot Shoe, Breaking Vegas and Holy Rollers. Card counting was even the topic of an episode of The Simpsons (Sky Police, 2015).

By
Eliot Jacobson Ph.D.
August 25, 2016