FrankReynolds
FrankReynolds
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March 15th, 2022 at 7:23:36 AM permalink
Hello. Does anyone know how to calculate an optimal bankroll for a casino owner? And not for binomial results like in sports betting but for slots, roulette, etc
mcallister3200
mcallister3200
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FrankReynolds
March 15th, 2022 at 7:55:58 AM permalink
I donít know that itís optimal but status quo is to highly leverage with junk debt, and if thereís an economic downturn just shelter your more valuable properties by splitting into multiple companies and declaring bankruptcy (hi CET and Penn)
FrankReynolds
FrankReynolds
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March 15th, 2022 at 8:01:09 AM permalink
Thank you, but that is not what I'm asking. I should have been more clear about what i need:

Let's say I'm a casino owner and i only offer one game of slots. And i have only 100K available as a bankroll. How would i calculate if 100K is enough for the game? How would i set max bets for the clients in order to avoid going bust?? I think the concept is called Risk Of Ruin but all i could find were formulas and calculators for binomial results, which are not good for slots
Dieter
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Dieter
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FrankReynolds
March 15th, 2022 at 8:17:42 AM permalink
Quote: FrankReynolds

Thank you, but that is not what I'm asking. I should have been more clear about what i need:

Let's say I'm a casino owner and i only offer one game of slots. And i have only 100K available as a bankroll. How would i calculate if 100K is enough for the game?
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Welcome to the forum.
I believe this question can be well answered by a paid math consultant, if you're not comfortable doing the math yourself.
Yes, I think the Kelly Risk of Ruin math will come into play.

Perhaps a math expert will contact you by private message.

Best of luck in your endeavours.
May the cards fall in your favor.
Dieter
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Dieter
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March 15th, 2022 at 8:19:21 PM permalink
Possibly of interest:

https://gaming.nv.gov/index.aspx?page=60

I haven't delved in too far, but the primary concern seems to be that a casino can pay their jackpots out by the next business day, not that they can fade the variance long term.
May the cards fall in your favor.
Dobrij
Dobrij
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FrankReynolds
March 16th, 2022 at 2:50:20 AM permalink
Quote: FrankReynolds

I should have been more clear about what i need:

Let's say I'm a casino owner and i only offer one game of slots. And i have only 100K available as a bankroll. How would i calculate if 100K is enough for the game? How would i set max bets for the clients in order to avoid going bust?? I think the concept is called Risk Of Ruin but all i could find were formulas and calculators for binomial results, which are not good for slots
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You can do this with special software,they work on the principle of gambler ROR calculation, only they take into account:

-Amount of gaming equipment slots & tables (game versions and rules)
-Expected bet spread
-Expected Game Intensity
-Conditions of cashback, deposits, jackpot, and more
-Pattern of your gamblers. Swing of the "float" and credits
-Online ar baseland (These are different things)

And then you choose the calculation logic:
(a) Find out ROR risks of existing games, and set max-bet's
(b) Find out how much you need put money in the cash to cover the risks


Logically, you need to have a bankroll so that your ROR would be less 3%, but in practice most of the casinos in Europe work with more than 15% ROR probability. I know many owners who work with risks of more than 40%
FrankReynolds
FrankReynolds
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March 16th, 2022 at 3:12:34 AM permalink
Thanks. But still not what i need. I need a way to calculate a game payout structure for me to have a very low chance of going bust with 100K
charliepatrick
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FrankReynolds
March 16th, 2022 at 3:33:30 AM permalink
I don't know for sure and couldn't find any confirmation but in the UK I thought (casino) operators had to bank 4 x Jackpot for each machine. This does seem a huge amount if you were setting up a small casino, which may explain why it seems to be only chains who now open new ones.
Dobrij
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FrankReynolds
March 16th, 2022 at 4:33:30 AM permalink
Quote: FrankReynolds

Thanks. But still not what i need. I need a way to calculate a game payout structure for me to have a very low chance of going bust with 100K
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Do you need to create a new game, or set the maximum stakes?
What game is this? All games have different volatility
FrankReynolds
FrankReynolds
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March 16th, 2022 at 5:36:13 AM permalink
Set the maximum stakes. For any game with more than two outcomes

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