Progressive Question
Quote: SOOPOO
Please tell me you can see the difference between investing money, and using the money over and over again to generate more money?
Based on his comment it's obvious that he can't see the difference.
Gambling - The activity or practice of playing at a game of chance for money or other stakes.
Quote: GaryJKoehlerSince this thread started with a question about progressives, I’ve always wondered about the following (assuming my logic isn't horribly flawed).
Suppose one is playing a 9-6 Jacks or Better progressive where the current jackpot is 6000 coins. Proper play gives an EV of 1.006513 with the probability of hitting a Royal at 0.0000301253. When you take out the EV contribution of the Royal, the EV is 0.825801. The reason I mention this is the progressive is different from normal VP in that it is a winner-take-all and the jackpot resets, often to a value far less than the normal Royal payout (e.g., Playtech’s Megajacks resets to 1625 coins, at least it did back in the day.)
Let’s assume two people can’t hit the Jackpot at the same instance. When someone finally hits the jackpot, the losers were effectively playing a 0.866129 EV game (this adds back a Royal at the reset point – using 1625 as an example). And as the number of players increases, the chance of any one person hitting the Royal first decreases.
Has anyone quantified this to get the actual EV of chasing a progressive as a function of the number of players involved?
In a private correspondence, DRROCK alerted me to a silly mistake (I forgot to divide by 5). The EV of 0.825801 should have been 0.0.9703708. Likewise, the 0.866129 EV should have been 0.9794065.
