How Do Casinos Get Odds in Their Favour?
Online casinos like Joker123 operate similarly to any other casino setting in terms of odds. The main idea is that “the house always wins,” no matter the type of gameplay you enjoy. It is not a matter of chance that the casino protects its profits, but many wonder about the mathematical concepts behind this cautionary tale for novice gamblers looking for an easy win.
Here are a few statistical considerations that explain why the “house always wins,” including the casino’s in-built advantage.
Three Ideas That Keep the Odds in Favour of the Casinos
Expected Value (The Coin Flip)
The expected value concept would indicate the average result if a player made the same bet an infinite number of times. The most famous example of this is flipping a coin for heads or tails. There is a 50-50 chance that each flip will land on heads or tails, and this does not change as each new bet resets the odds.
Whether you are flipping the coin for the first time or the thousandth time, there is still a 50% chance of landing on heads and a 50% chance of landing on tails. If the coin flip represents you either doubling your money or losing your money on each new attempt, the expected value is what you can ‘expect’ to win or lose long-term if you keep flipping the coin (not taking into account whether you still have money to put in after your lose it all on one flip).
Roulette operates on this principle, and statistically, the expected value is negative. Over the long term, players will lose their stake and ensure the house keeps its advantage. The more games a casino offers with low or negative expected values, the higher their long-term profits as players keep trying to go for the win.
Perceived Luck (The Hot Hand Fallacy)
The hot hand fallacy refers to the cognitive-social bias. It is the feeling of a ‘lucky streak’ that people carry after a successful outcome for a bet. They wrongly believe that they will have a greater chance of success with further attempts, even when the statistics prove otherwise.
Casinos know that punters lose as fast as they win, and the odds are always in favour of the house. The law of statistics is that the more plays there are, the greater the chances are of losing. Players suffering from the hot hand fallacy are playing against an established house edge that the numbers support long-term; don’t fall victim to it.
The key is to exit the game immediately after a win to keep the odds under wraps.
Survivorship Bias
The final idea arises because winning is exciting. Survivorship bias is a brain concept where the mind creates false premises to keep you hopeful for a win. For example, it might deny the statistics or players’ actual experiences to uphold the bias that it is possible to win.
Casinos count on players continuing to believe in a win. These biases are dangerous for irrational gambling and major losses, and it is important to play objectively. Take into account the true statistics, and bet what you can afford to lose on every hand because the house always wins if you keep playing.
May the Odds Be Ever in Your Favour (It is Possible)
As profitable ventures, casinos operate on laws of probability and keep the odds in their favour. Understanding the concepts like the coin flip, hot hand fallacy, and survivorship bias may not ensure a 100% success rate, but they can improve your gameplay.
