"hold percentage" calculation

Hi, how do you calculate it?
In which situations you may or not play more than house edge?

Quote: ybot

Hi, how do you calculate it?
In which situations you may or not play more than house edge?

ybot,

The casino calculates the "hold" on a given table by dividing the amount of money won from the players by the players' total buy-in.

For example, say you buy $100 worth of chips on a BJ table. You play for awhile, and eventually leave with only $25. If that's the only action on that table, the hold would be ($100 - $25)/$100 = 0.75, or 75%.

Hope this helps!

Dog Hand

Hello Dog Hand, thanks for your answer
Why do Casino reports say that their average hold percentage is 11% while their edge over the player is 2.7% 5.4% or any other lower than 11%?
Does it mean they earn more than house edge?

Ybot

The edge is calculated for best play. For example, a blackjack player using “best strategy” decisions. Most players do not play that well, which increases the house hold. Also, players will lose their entire bankroll and must stop play at a loss when they are unlucky. The casinos have deeper pockets.

In BJ you can play best strategy but in other games it is pure luck. No matter what you do you have equal disadvantage.

Quote: ybot

In BJ you can play best strategy but in other games it is pure luck. No matter what you do you have equal disadvantage.

If keep playing your money through a house edge of 2.5% multiple times, the hold will grow to a number much larger than 2.5%.

Quote: ybot

Hello Dog Hand, thanks for your answer
Why do Casino reports say that their average hold percentage is 11% while their edge over the player is 2.7% 5.4% or any other lower than 11%?
Does it mean they earn more than house edge?

Ybot

Because people keep gambling and "recycling" the money until they have none left.

If I sit at a BJ table with $100 and play until it's gone... the hold is 100%, but that doesn't change the house edge of 2.7%.

Quote: unJon

If keep playing your money through a house edge of 2.5% multiple times, the hold will grow to a number much larger than 2.5%.

Why, how do you calculate it?

Quote: ybot

Why, how do you calculate it?

One minus the amount of chips cashed out of a table divided by the amount of chips bought from table.

Quote: ybot

Hello Dog Hand, thanks for your answer
Why do Casino reports say that their average hold percentage is 11% while their edge over the player is 2.7% 5.4% or any other lower than 11%?
Ybot

ybot,

Typically, the hold exceeds the house edge because the players reinvest their "winnings".

Let's switch to Baccarat, and pretend that you play your chips in a very odd fashion: you buy in for $500, and receive 20 green chips, which you place in a stack by your right hand. On each round, you take one green $25 chip from your right-hand stack and play it on Player. If you win that round, you place the two greens (your bet plus your winnings) in a stack by your left hand; if you Tie, you place the one green in your left-hand stack. You continue in this fashion until your right-hand stack is empty, which will naturally take exactly 20 rounds, at which point you take your left-hand stack and leave.

If you (and every other player at the table) played exactly like this, over the long run that table's hold would be exactly equal to the house edge on Player: 1.24% (for an 8D game).

However, nobody plays like that! Instead, the player keeps his chips in one pile, and continues playing until he leaves. Thus, on average each chip is wagered more than once, but each time, on average, the player loses an amount equal to the house edge.

I hope this clarifies the situation for you!

Dog Hand

Quote: ybot

Why, how do you calculate it?

Total amount wagered / buy-in amount * edge = hold %

Dog, a very clear example of the scenario. Thank you.
In case you kept on playing after 20 rounds you started using some of your temporary winnings.

A player may win and run, lose it all, carry 10 1000 or any buy in .
Suppose you flatbet, how could you lose more than HE?

Quote: ybot

A player may win and run, lose it all, carry 10 1000 or any buy in .
Suppose you flatbet, how could you lose more than HE?

OMG. At this point, I'll just wish you good luck.

Quote: Ace2

Total amount wagered / buy-in amount * edge = hold %

How do you apply it?

Here are two previous Wizard of Vegas threads about "hold."

https://wizardofvegas.com/forum/off-topic/general/3327-what-is-hold-percentage/#post36705

https://wizardofvegas.com/forum/gambling/tables/3503-hold-percentage/#post39259

Chester, thank you very much from the 2010 links about hold percentage.
So, hold does not affect house edge.
Are there any way to worsen HE?

Quote: ybot

...Are there any way to worsen HE?

Changing the rules of a game changes the house edge. For example, when a casino changes its blackjack game from dealer stands on soft 17 to dealer hits soft 17, the HE increases. Also, increasing the number of decks in the blackjack shoe increases the HE.