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Unlike retail outlets where the price is clearly disclosed, casino pricing is based on a theoretical win or what the casino can expect to win over a period of time. If a bettor bets $10 then the casino knows to expect the player to win $10,000 over the course of 30 days. This would be considered a theoretical win.
A casino would pay out the money bet on the outcome of a game in a given period of time. If the bettor wins, the casino pays out as a reward. If the bettor loses, the casino keeps its winnings.
Casinos pay out at a rate based on wins and losses. This means that if a gambler wins on five pay-out rounds and loses on the other three, the bettor’s total winnings are $25,000 and the casino’s total winnings are $20,000.
An easy way to determine the casino payout is to multiply the total bets by the casino’s payout rate.
Example: Player A bets $10 that he will win $10,000 on a game of roulette. The casino pays out $6,000 over the course of 30 days, or $7,400 if player A only bets on three of the pay-out rounds. The casino has paid out at least 7,400 times less than its advertised return under current casino rules for a 60-day period. In this instance, the casino is losing money on the 10-day bet. If a player bets $100 each round on 100 pay-out rounds, in a six-hour period he would have bet, at a 50/50 chance, on 2,100 pay-out rounds. Theoretically, he would have won $10,100 but in fact he would have lost much more.
Beware! A casino often takes a larger stake of stakes in a casino game than its advertised payout under current casino rules. This means that the money in the casino pool is not necessarily going to exactly compensate for the lost money in pay-out rounds.
Another method to calculate the casino payout is to subtract the amount bet from the total casino pool of game wagering stakes. If a stake can be used to pay off a player, there is no profit for the casino by taking that stake. For example, if a player bets $1,000 that he will win $100,000 on roulette or a game of craps during a 10-day period, his bet will cost the casino $1,000. But, if the casino uses its stake to pay off other players then the casino does not make any profit.
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