Compounding money works
only on Wall Street
18 February 2000
By Mark Pilarski
Dear Mark,
On a certain 25¢ video poker machine that I like
to play, the machine allows me to double up what
I've just won by picking high or low against a
pair of rolling dice. This really can't be a
good bet, right? Nancy R.
For those of you who don't know it, some video
poker machines offer you the option of risking
your current winning hand for a chance at
doubling your money. Though it can be high/low
against a machine-dealt playing card, in Nancy's
case, it's against a simulated dice roll (2-6
under, 7 push, 8-12 over).
At first glance, Nancy, many players believe
this is just another way for the casino to
pillage your purse. Not so, my friend. It 's
actually one of the best bets in the casino. No
house edge means a 50-50 chance of you doubling
your money. Sound too good to be true? Yes and
no.
Though each decision has exactly a 50-50 chance,
the odds of winning more than one in a row will
decline sharply. Experts are divided on whether
you're gambling on individual rolls or a
sequence of rolls (myself in the latter
category), but either way, the bet is heavily
stacked against you if your goal is to string 10
wins together. Also, don't plan on doubling as
often as you wish. We all think of the
possibilities, Nancy, like winning 19 hands in a
row with a $2.50 investment and becoming an
instant millionaire. Unfortunately, just like
the table games where table limits apply, the
compounding of money by parlaying winnings won't
work here either. Machines limit the doubling
from as little as five times in a row to 10,000
coins returned ($2,500).
So the long and short of it, Nancy, is to show
some strong money management (cash control) and
play this wager without going overboard.
Dear Mark,
I was on the Internet looking for information on
casino gambling for a school project. My topic
is called "Should the United States Promote
Casino Gambling?" I found your column called
"Covering All the Bases" very helpful. I was
wondering if you had any other material that
might help. Lynne T.
Because of limited space, Lynne, allow me to
temporarily stand neutral on the proliferation
of gambling across America and the government's
active participation in it. For those who want a
phenomenal research treatise on your
legislature's relationships with the gambling
industry, look to Robert Goodman's book The Luck
Business, subtitled, "The Devastating
Consequences and Broken Promises of America's
Gambling Explosion."
Besides your school project, I would highly
recommend this solid study to all government
policymakers and voters alike who will decide in
the future whether the fastest growing industry
in the nation (gambling) belongs in their
neighborhood.
With half of America now living within two hours
of casino gambling, it's sooner than you think.
Dear Mark,
Recently I was on a crap game where the dice
were rolling numbers for eight hours. Not
non-stop, but it was a player's game and I just
couldn't leave. Good thing I didn't. I bought in
for $100, played just like you recommended (pass
line bets with odds, placing the 6 and 8), and
walked out eight hours later with $3,400. I
thought your readers might appreciate that every
now and then, even the small-time player, has a
night worth remembering. Clark D.
Bosses give you the heave-ho, relatives disown
you, friends forget you, but an unbelievable
night on a crap game, ah, that lasts forever.
Thanks for sharing, Clark.
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