hold percentage

What is the exact definition of hold percentage and how is it calculated?

I have ready several descriptions, but still don't have a firm grasp of what it is. Is it the theoretical number of units the house holds from each player during play?

Also what are the variables that influence hold? (Hit percentage, fold percentage etc...)

Hold percentage is the percentage of buy-in money (also chip-in money) that a table game keeps.

for example, if various players bought in at a table for $1,000 during a 24 hour period, and that table kept $250 of it (the players color up and out a total of $750), then the table hold is 25%. It made $250 on the $1,000 it saw in action.

As a very rough and loose rule of thumb, on a game's even-money main bet, for each percentage of house edge, the table makes 10% of table hold. For example, if a game has an even-money main bet that has 1.5% house edge, it should average about 15% table hold over time. A carnival game with a 3.5% house edge should hold about 35% table hold over time.

Quote: mrsuit31

What is the exact definition of hold percentage and how is it calculated?

Hold % is equal to 1-[(1-Edge) raised to the S power]. Wherein S is the number of player Sessions w/in 24 hours.

Players often buy in once but have multiple sessions at a variety of tables.

A lot of managers are driven by what the hold % of a game is. However, it's a bit of a misnomer in the way that it is affected by several factors of which house edge is the driving force.

However, speed of the game is also important. Roulette with a 5%+ house edge is a much slower game than Blackjack (0.5%) but the hold % narrows between them due to both speed of the game and player error (therefore increased house edge).

Another factor not often taken into account as much as it should is playability. For example, a game that has players sitting at the table for extended period of times will hold higher as the house edge will kick in more - the downside being that the 'drop' will be lower as players are not coming in and out of the game as much. This factor can also change due to the location of the game and whether it is a locals or visitors market.

At the end of the day, the win rate is the most important in my opinion. You can't go to your bank manager and talk hold %'s, you have to talk cash. So win rate takes into account both the hold % and also the 'drop' and is the part that is used to pay the bills.

I can certainly accept that "ease of entry" into a game is important. Space at a Blackjack table allows additional buyins whereas a condition of literally no seats being available or effectively no seats being available puts a brake on new money. People standing at a craps table provide less of a barrier to new money particularly if the table is not particularly full. Yet one casino owner took his BJ tables down from seven spaces to five spaces to increase the rate of deal even though this decreased ease of entry.

The more important factor is probably speed of the game. Some casinos really push the BJ dealers and also keep the dice really moving on a craps table. South Point is pretty much a No Small Talk, Deal Faster place.

Driving players away from the table with a high speed deal... if they take their chips with them affects the hold at their Buy-In Table and at other tables but over the shift or the day's duration it makes no difference. To a casino, its how many people walk in the door, how much cash do they bring with them, how fast to they get to trade that cash for chips, how fast do they transfer those chips to the casino. Those players who actually win chips from the casino simply need to be kept happy enough to stay there and play a bit longer. It all starts with Bodies Through The Door. A low life joint can do well if it keeps the cash flowing. I've heard some dealers talking about how deserted the casino was and wondering if they would have a job much longer. In a situation like that, it doesn't make much difference how fast the games are or what the house edge is.

Thanks guys, that definitly gave me some clarification!

A couple weeks ago, I started a thread asking for clarification about Hold Percentage.

That thread is three pages long: https://wizardofvegas.com/forum/off-topic/general/3327-what-is-hold-percentage/