Setting Table Maximum Betting Limits

Introduction | Key Principles | Setting Limits | Mathematics | Effective Maximum Bet Limits | Variable Betting | Volume Dependence | Maximum Loss Point | Variable Bet Distribution | Non High-End Casino Operation | Analysis of Results | Conclusion |

Let’s first establish some key principles.

1. “Money management systems are a bunch of junk!.” (ref 1) There is no system in a fixed negative expectation game which changes the casino advantage. Theoretical win equals turnover (ref 2) multiplied by edge ( notice that in this well known and often used formula there is no mention of decreasing theoretical win by dividing by a “system” factor.).

2. In independent trial games sequences of results have no relationship between each other. The roulette wheel, dice, coins etc. have no memory and the results are distinct. Sequences or lists of results may be a good road map of where you’ve been but are useless in trying to determine where you’re going. The next result has the same probability as the last.

Particularly with this second key principle in mind, let’s debunk our “expert’s” theory of limiting table maximums by a double-up factor. Consider two table games sitting right next to each other in a small casino. One, a $5 minimum table and the other, a $25 minimum table, both playing the same independent trial game. On the first we have a minimum bet to maximum bet range of $5 to $80 and on the second $25 to $400. Our intrepid gambler in this well managed “small” casino starts her double-up system with a $5 bet on Table One. The bet loses and so the system player then bets $10. This also loses and so the bet is increased to $20, loses again. $40, loses again. $80, surely not but loses again and because the casino is “protected” by its limit spread the player is of course doomed, as a bet of $160 is not permitted on Table One. But, the player then moves to Table Two and starts off with a bet of $160, which loses and then bets $320. The game has no memory, right, so what’s the difference if she finishes the betting sequence on Table Two? Table One was “hot” or on a “streak” you say, but so what? The map shows where you have been, not where you are going.

So did the small, “well-managed” casino, with a four time double-up philosophy suddenly become bigger, less “well-managed” or should someone have barred the player’s action or stuck an indelible sign on her forehead, “$5 to $80 player only”? Clearly ridiculous, but an often argued point. “The limits are too loose.” “A system player will take advantage of the spread.” “When they get ahead they are playing with our money and are more dangerous if you give them higher limits.” “A $5 to $5000 table limit on Baccarat is ridiculous.” The list goes on and on, with many opting for the conventional wisdom of either sixteen times or one hundred and twenty eight times the table minimum. Notice also, the cavern here between small and large, sixteen and one hundred and twenty eight!

Enough of this, how should table limits be set properly?

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ref 1 Mason Malmuth. 
ref 2 the term turnover relates to total amount wagered throughout this document.
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