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Build A Wall!

Mr. B, a highly successful AP who doesn’t play casino table games, said to me over lunch in a casino coffee shop, “Why don’t they fix everything? If I ran the casino, I would just make it so that no game is beatable!” I’m sure you would try, B! It’s a fair question, but the full answer goes beyond game protection.

Let’s start with the idea of complete game protection. It’s a unicorn. First of all, it’s not even an appropriate objective. Though some casinos actually do have a pathological drive to thwart all APs, that’s just biting off your nose to spite your face. The real goal is profit maximization. The most random shuffle, which would thwart many AP moves, is not as profitable as a much faster shuffle that may occasionally be beaten by a highly skilled AP. Thorough background checks on every person walking into the casino would shut down some APs, but would create a major discouragement to the thousands of degenerates who want to gamble right now! London’s style of casino management is stupid. A zero tolerance policy is not optimal.

Even if a casino wanted to stop every AP, they couldn’t. Casinos have to play the hand they’ve been dealt. Their employee pool consists of people who are less educated and under-incentivized relative to the top APs who are trying to beat the games. Think about it. Casino employees universally believe that the idiot at third base is killing the table by taking the dealer’s bust card. These are people who believe that simply by virtue of a big bankroll and proper money management, a player can beat the games. Ackkk!

If a new casino opens up in Pennsylvania, there are no local employees who have the experience of the long-time Vegas pros who are about to walk in to whack the games. These employees will not know every AP method to beat the games, and it’s not their job to know. Even a Table Games Manager is not a game-protection specialist. A Table Games Manager has to do many things, while APs specialize. There are always new casinos, new employees, new games, new equipment, and new circumstances that make it impossible for a casino to anticipate and thwart every new method of beating a game.

My crew recently found a new game in a casino. The game gave the basic-strategy player an edge of 10.6%, and this was the stingier incarnation (the first gave an edge over 15%). Since the game was new and unique, the casino had no one to turn to for answers or to check the inventor’s math, and the game died a horrible death. Next!

But the real reason that it is difficult to thwart all AP activity is not related to game protection, but rather game design. Suppose that the casinos actually want to provide some entertainment value while they suck every penny from a gambler’s life savings (I said “suppose”!) In that case, they probably want the game to involve some playing decisions. (Obviously, the success of three-reel slots and baccarat shows that playing decisions are not necessarily critical to provide entertainment value. Addictive drugs are entertaining.)
Furthermore, they probably want the game to give the players an edge in the ballpark of -4% (fast games, such as blackjack and Casino War, can make money for the casino even with edges in the -0.5% to -2.5% range). Here’s the key question: Given that there are playing decisions to make within the game, what is the gap between the typical gambler’s edge and the expert player’s edge?

If the game involves tricky consequential decisions, then the expert player’s edge might be 20% higher than the gambler’s edge. But if the casino wants the masses to be playing at -4%, then it means the expert is now at +16%. If we were to make the payouts stingier, to put an expert at breakeven, then the gambler would be at -20%. At that level, the gambler probably gets gutted too quickly, and the game won’t be popular. The zero-tolerance policy to thwart the expert makes the game unpalatable to the thousands of regular gamblers.

You’ve got to give the fish some play for their money. Fantasy sports websites started to see this problem. The pros were gutting the fish so efficiently that the fish lost interest, and the regulators started questioning the equity of it all.

So the key in game design is to offer a set of decisions where the range from the smart to the stupid is not too extreme, or to offer decisions that provide entertainment, but which are completely inconsequential in the game, and which are meaningless in terms of EV. For instance, in Rock, Paper, Scissors, the player has a choice, but a meaningless one if measured by EV. Likewise, choosing Banker vs. Player in baccarat is a relatively inconsequential decision, but one which receives more human scrutiny each day than the debate over climate change.

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Are Women the Dutch Book?

Last week, as part of the celebration for International Women’s Day (March 8), a statue of a defiant girl staring down the Wall Street bull appeared. Count me among those who love the statue and hope it will stay. It is no secret that women are under-represented in many fields, including the AP world, as I discussed in an earlier post. Some APs have floated the idea that if the casino’s old-boy network underestimates the skills of women, women might actually have a strategic advantage relative to their fellow male APs. These ringer women will get away with murder, and will make huge profits before they are even suspected. Well, that’s the theory at least, but are women the Dutch Book? Continue reading Are Women the Dutch Book?

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Legal Musings: “Making a Bet After the Outcome is Known”

With all the casino cheating going on these days (see my previous two-part post), casinos have stepped up their game. Not only do they cheat you by not paying when you win, but they strengthen the move by enlisting the local district attorney to extort you. The way it works is that the casino doesn’t pay. Simultaneously, they get the DA to intimidate the players by filing charges relating to the game, or threatening to file charges. A law-abiding AP is terrified by criminal charges, so it’s a no-brainer to accept the implicit deal — virtually always available — to have the DA drop the charges, and let the casino keep the money. Continue reading Legal Musings: “Making a Bet After the Outcome is Known”

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When Experts Say Opposite Things

When I was in graduate school 45 years ago, plus or minus, I heard about an incident many years prior to that at the University of Chicago. It appears that there was an elevator for a campus building with a “Students Only” sign on it. One professor entered and was challenged, presumably in a friendly way, because he wasn’t a student. The professor answered, “We are all students. I study much more today than when I was your age.”

I’m that way too. I study gambling as much or more today as I ever did. One “advantage” of hosting a radio show about gambling is that I am “forced” to read gambling books that I wouldn’t otherwise pick up. I read the book in order to try to ask interesting questions of our guests. This gives me a much broader grasp of gambling than most players have.

I have many gurus — in the sense that I listen to what they have to say and try to apply it to my own situation. Two (of many) are Ed Miller and Richard Munchkin. Recently I realized that they said virtually the opposite thing about a subject — although ironically they both respect each other and would probably agree with the point of view of the other guy.

Sounds strange, right? Let me continue.

Ed Miller writes a lot about No Limit Hold’Em cash games with an emphasis on low stakes games. His recent book, The Course: Serious Hold’Em Strategy for Smart Players, is an excellent treatise on how to make money in $1-$2 and $2-$5 games. We’ve spoken about the book on the air, but we barely scratched the surface of what the book holds.

Near the end of the book is a section entitled “The Pitfalls of Running Good.” Miller says, “Running good out of the gate is one of the worst things that can happen to players. If they rack up big wins early on, a couple of bad things can happen. First, they develop unrealistic expectations. . . . Second, these early wins reinforce bad habits.”

I’m not going to quote his entire argument, but I found it persuasive. You need to guard against the dangers of running good. And Miller discusses several ways to do that.

Richard Munchkin, of course, is my co-host on the Gambling with an Edge radio show. However much I’ve prepared to listen to what our guest has to say on the air, I’m always eager to hear what Richard has to say as well. Although I often prepare a script beforehand and Richard knows where I’m going to go in the discussion, I never know beforehand what he’s going to say and I find that interesting and educational.

On more than one occasion, Munchkin has opined that a disproportionate number of successful gamblers ran good at the beginning. Why? Because a disproportionate number of the players who ran bad quit gambling! Somebody who always seems to lose has a tendency to give up and conclude that gambling is not for him.

So Ed Miller says running good at the beginning is one of the worst things to happen to you and Richard Munchkin says it happened to most successful gamblers. Not exactly contradicting each other — but close.

After mulling this over for a while, I decided they’re both right!

Running good does create some unreasonable expectations and bad habits, but gamblers who end up successful eventually learn to deal with these things. (If they don’t, they’re not successful gamblers. Nobody runs good forever.)

However bad running good is in terms of learning to play the game the right way, I’ll take it every day! While I understand Miller’s argument, I’d rather be $10,000 ahead than $10,000 behind. And so would you.

As to whether Munchkin was right about today’s successful players running good at the start, I started to examine whether it was true for me in particular. A case could be made that it was — but it also doesn’t matter. Anecdotal evidence about any one player (including me) doesn’t come close to proving or disproving any statement starting with “Most players . . .”

But I found Richard’s argument persuasive as well. The early loser tends to quit. The early winners tend to keep going. He’s looking at tendencies — not something that is correct 100% of the time.

I like it better when my gurus disagree with each other. It forces me to think about the arguments and come to my own conclusions. That’s how I improve my craft. And the fact that these two gurus are addressing games other than video poker means I always have to see if what they said applies to my game as well. Again, that’s how I improve my craft.

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“That Place is a Dump!”

A friend recently asked me what casinos in the US would be worth visiting, given her desire to gamble and discover new places. I often get that question when people hear that I’m a card player. What’s the best casino you’ve been to? Where should I stay when I go to Vegas? Do you like Casino X? Continue reading “That Place is a Dump!”

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I Think My Card Might be Poisoned: What Now?

After getting heat hitting a repeat target, my teammate Bullet sometimes says, “I’ve gotta go in there and find out if my player’s card is good.” Why? Why?? Why???

No! No!! No!!! First of all, do you really even need to know the answer to the question? Continue reading I Think My Card Might be Poisoned: What Now?

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The Boss Just Sat at Our Table with Game On: What Now?

A handful of times in my career, a boss has sat down at our table while my BP and I were playing a target game. Many players have never experienced that scenario, and completely panic when it happens for the first time. They’re not even sure what to make of it, but I’ll tell you. Continue reading The Boss Just Sat at Our Table with Game On: What Now?

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2016 Blackjack Ball

Once a year for the past 20 years, the finest blackjack players in the world get together for an evening of drinking, visiting, drinking, dining, drinking, and testing themselves against one another. The event is hosted by wit and raconteur Max Rubin with some help from Barona Casino. A few lawyers and other gambling professionals are also invited, including one grateful video poker writer and teacher. Continue reading 2016 Blackjack Ball

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I Expect to be IDed at the Door: What Now?

Since Vegas is a resort destination, there are families with kids staying in the hotels. By design, access to the hotels, restaurants, and other amenities requires people—including minors—to pass through casino areas. That’s why Vegas doesn’t ID people for age at the door. Continue reading I Expect to be IDed at the Door: What Now?

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Tells: Dealer Has a Bad Attitude, #1-3

Obviously you can see when a dealer is grumpy, argumentative, cocky, or lazy, but of course dealers may make a modicum of effort (the key word there: modicum) to suppress such a bad appearance. That’s where we employ tells, subtle clues, some based on dealing procedure, that give away that the dealer has a bad attitude. You should avoid dealers with bad attitudes—they will cost you money sooner or later. In the best case, they’ll toke hustle you to death; in the worst case, they’ll snitch. Continue reading Tells: Dealer Has a Bad Attitude, #1-3