The following incident happened while a friend of mine was playing slots, but there’s enough in common to gambling at video poker that I think it’s worth discussing.
“John” was scouting a casino in Las Vegas looking for slot machines in positive conditions. There are many, many slot machines that are sometimes positive — but most of the time, on each of these machines, the house has the advantage. Most players, however, are not aware of when the game is positive or not and simply play the game, quitting whenever they feel like it. Sometimes they quit when the game is positive, and then when the next knowledgeable player comes by, that player typically sits down to play it off.
John has “strike numbers” on perhaps 20-30 different slot machine titles. That’s nowhere near all or even most of the beatable machines, but still, it’s more than most players know.
He found a game for $25 a play that he thought might be positive. This is a much larger game than usual for slot players. Most players can’t afford to play this game, but the size of the game was not a showstopper to him. He shifted the denomination on the machine so that it showed the $10-per-play game and consulted his notes. The $10-per-play game was nowhere near a positive play at the moment, and other pros seeking games would walk right by. He wanted time to think about this situation without drawing attention to the game.
His notes said that the game was a play when a certain meter was at 15 or higher — and sure enough this meter was at 16. So, it was a play. His notes also said the game is highly volatile. He knew that on a volatile $25 game, he could easily win or lose several thousand dollars. If he played this game in this situation several dozen times, he figured he’d make a sizeable profit. But there was no way to tell at the outset whether this time would be positive or negative.
He had $3,500 on him. He figured that would cover the swings most of the time. He wouldn’t likely run out of money, but if he did there were people he could call. He didn’t like making these calls — partly because that meant others would have the right to call him when they ran out. He trusted himself to run out of money very rarely, but some of the people he called wouldn’t have the same discipline. But if he asked for help, he had to be prepared to give help to others in the future. He didn’t want to open that door.
He actually called me to ask my opinion. John and I respect each other’s knowledge and have helped each other out occasionally. I know him well, know how he handles swings, and I thought he should go for it. I wasn’t in Vegas at the time, and he was, so there was no way I could get money to him if he ended up needing some.
He was just about to start when another pro, “Peter,” approached him and asked if he were going to play the $25 game. John knew Peter vaguely. He’d seen him checking out machines but wasn’t sure how knowledgeable he was.
John said yes. He thought it was a good play and he had the bankroll to play it. Peter said he had the bankroll too, but wasn’t in the mood to risk his daily score on such a volatile play.
Peter, it seems, had been losing recently and was sort of gun shy. He didn’t trust his own judgment, so he didn’t want to play such a big game. He could likely find a sizeable number of smaller games where he could increase his bankroll by dribs and drabs rather than making a big jump one way or the other all at once.
Peter said he had a few thousand dollars on him and suggested they partner up for this one game. John thought about this. It had some positive aspects to it. It essentially guaranteed he wouldn’t run out of money.
At the same time, John had never done business with Peter before. Was he trustworthy? Who was going to eat the W-2G if there was one? Peter was friendly now, but what if Peter was the one playing when the bonus round hit and denied making a deal? So John passed and played it by himself. Peter wished him luck and left.
As it happened, the bonus round went off rather quickly and John ended up making $900. This was a nice result, but it certainly didn’t have to be that way.
I want to look at Peter’s reaction to this. Peter had actually seen the game first and passed on it. He had the financial bankroll — but not the emotional bankroll — to play the game. So, I believe he was right to pass.
Everybody has his own emotional bankroll. Respecting your bankroll parameters, both financial and emotional, is critical to long term success at gambling. I also think that Peter suggesting they be partners was a move that made sense for him. This would lower the swings and lower the risk. So now it might have been within his comfort zone.
It couldn’t have been too much of a surprise for Peter that John turned down his offer to partner up. That’s probably the usual result. But you don’t know unless you try.
All in all, the situation was well played by both men.