Loss Rebates

[FlightMedicNoMore]

Does anyone have a spreadsheet for figuring at what point a loss rebate makes sense, bankroll requirements, optimal betting, optimal games (craps, BJ, etc.)

[darco77]

I don't. But this topic is well covered in Exhibit CAA.

[Marvin]

Speaking of which... how do I get my hands on that book other than spending 3-4k on EBay?

[Aslan]

Just send me $2995.95. j/k I hear he is working on a new book. I hope it is not just a $250 update. I have better things to spend my money on.

[darco77]

...optimal games (craps, BJ, etc.)

I don't want to give away too much here. But for game selection, go for high variance. Loss rebates are essentially put options, and one component of an option's value is volatility.

Back on BJInfo, there was discussion about a $100 loss rebate promo at one of the newer LV properties. I did not do the math before using mine. Instead, I put $100 into a $10 VP machine, planning on getting two $50 max bet spins. Later I found that this tactic wasn't optimal, but wasn't bad either.

[FlightMedicNoMore]

In examining LR are high house edge bets with larger return better or worse for the ROI? I know they blow the RoR out of the water but does the EV get better?

[RWM]

By larger return do you mean larger variance? If so then yes.

Here is a thought experiment for you. I will give you a 20% LR. You have a choice:
1. You get to bet $100 on the flip of a coin. (No house edge)
2. You get to bet $100 on 1 number straight up on a roulette wheel. (American wheel, house edge %5.26)

Which is better an why?

NOTE - This is really simple math and anyone who can't do this should probably not consider making money at advantage gambling.

[FlightMedicNoMore]

1) Has EV of $10 ($100 Win - $80 Loss/2 Outcomes)
2) Has EV of $14.21 ($3500 Win-(37 Chances to lose*.8)/38 Outcomes)

Damn I have the mother of all hangovers.

[FlightMedicNoMore]

I found it listed here for $250 http://www.beyondcounting.com/

[flyingwind]

NOTE - This is really simple math and anyone who can't do this should probably not consider making money at advantage gambling.

Or being in casino management.

[flyingwind]

Let's have a tougher math challenge problem.

[FlightMedicNoMore]

Let's have a tougher math challenge problem.

What if you only receive the loss rebate if you lose 20 units? If you could repeat both scenarios an unlimited amount of times how large a bankroll do you need for RoR to be 1% or less?

I think that kicked it up a notch.

[Marvin]

I found it listed here for $250 http://www.beyondcounting.com/

You can't order it from there anymore. I sent an e-mail several months ago to their e-mail address and never received a reply.