Non Negotiables
| Practical procedures and relative costs of Non Negotiable play on table games. By Andrew MacDonald Gaming Analyst, Adelaide Casino,1991 |
Casino Analyser Reference Non Negotiable Differential |
Introduction | Walkthrough | Mathematical Ratios | Revenue Calculation Comparisons for Various Games After Tax | Non Negotiables on Roulette | Other Methods of Explanation | Conclusion |
Let us now look at other potential methods of explanation of non negotiable chip usage. This may assist those not comfortable with the mathematics or those wishing to explain simply to Casino staff.
Consider the game of Baccarat. The player buys in for two units at the cashier and is provided non negotiable chip purchase vouchers. These are taken to the gaming table and two units are purchased.
One unit is placed on “Player”, the other on “Bank”.
“Player” is the winning result and thus the “Bank” loses (-1 non negotiable unit). “Player” is paid in cash chips.
The player then takes this cash chip unit to the Casino cashier cage and converts it into a non-negotiable chip purchase voucher of one unit.
The player returns to the table and converts the chip purchase voucher to a non negotiable chip and again wagers one non negotiable unit on “Player” and one non negotiable unit on “Bank”. This time “Bank” wins and the player is paid 0.95 of a unit in cash chips and loses one non negotiable unit.
If the player now leaves we have the following:-
Initial deposit = two units
Subsequent deposit/conversion = one unit
Total = three units Retained final non negotiable unit = one unit
Non negotiable turnover = three – one unit = two units
Actual turnover = four units (two units x two decisions)
Loss = 0.05 unit (cash out = one unit non negotiable + 0.95 unit cash)
Ratio = 4/2 = 2
| House advantage | = 0.05/4 |
| = 1.25% of actual turnover | |
| House advantage | = 0.05/2 |
| = 2.5% of non negotiable turnover |
The above reasonably represents the theoretical and probabilistic processes involved.
The same scenario can be followed through for single zero Roulette again using a “full cycle” approach.
Initial deposit = 37 units
Cover all numbers and zero on Roulette table
Loss in non negotiables = 36 units
Gain in cash chips = 35 units
Retained non negotiables = 1 unit
Actual turnover = 37 units
Non negotiable turnover = 36 units
Actual loss = one unit
Ratio of actual to non negotiable turnover = 37/36 = 1.028
House advantage = 1/37 on actual turnover = 2.70%
House advantage = 1/36 on non negotiable turnover = 2.78%
Thus another way of expressing the ratio of actual turnover to non negotiable turnover rather than R = 1 / (1-p) is:-
1 + retained non negotiables / loss in non negotiables (in a “full cycle”)
