Casino Bankroll Management
Fundamentals of Casino Bankroll Management
Casinos build an edge into every game they run. This is the sole reason they exist and over the years have made many billions of dollars in profits. Variance can see you on an upswing with short term wins lining your pockets. You can also hit a downswing, when the dealers go on a lucky run. The key to staying active long enough to enjoy a few upswings, and not leave the casino broke, is to employ smart casino bankroll management.
Casino Bankroll Management – Fundamental Concepts
From a math perspective, you can’t escape the house-edge in the end. If your objective is to hopefully book a meaningful win now and again, then bankroll management is perfect for you. The concept of variance is thus important in this context. Some games have lower variance, for example 50/50 bets like pass-line in Craps, Baccarat of the even money chances in Roulette. You’ll have short term ups and downs, though these will be small and incremental. Other games have the potential for much bigger payouts, though you’ll need to wait for a longer time before hitting one, for example slots or number bets in Roulette.
Your bankroll should reflect the amount of variance in the game and the amount of bets you will need to make each hour. For example it makes sense to have a bigger bankroll relative to the coins you play in slots than Baccarat, as you’ll spin through a lot more bets and wait longer for a big payout in these games.
For table games, 30 times your bet should be enough for the causal player.
Side-games are a sucker bet in most casinos; bear in mind that you supply the casino with a huge amount of their profit by partaking in these. For example, the insurance bet in blackjack has an edge of more than 12% in favor of the house. If you enjoy side bets and progressive jackpots, it’s great, but keep in mind that you need to add a lot more cash to your bankroll.
Casino Bankroll Management – Moving Up and Down Betting Levels and Stop-Losses
Many people only take a certain sum with them to the casino and leave their ATM cards at home. This works great if the frustration of a losing sequence could lead you to escalating your bets to try and recover those losses.
A different take on this is to move up and down betting levels depending on how your luck goes on a particular evening. For example, you separate $300 from your bankroll one evening and play in a $10 Blackjack game. If things go well and you reach $750, then you’ll have a bankroll for a shot at the $25 game. If instead you lose some early bets and end up with just $150, then why not move to the $5 game and try to rebuild there instead.