Player Loss

Introduction | What is the cost of rebating? | How large a value? | Unit Normal Linear Loss Integral | Baccarat (Player/ Bank 50% Equivalent) | Roulette (single number play on single zero Roulette) | Conclusion |

Most complimentary and junket programs utilise either theoretical win or turnover upon which to calculate player complimentaries or rebates. In some cases, particularly in the United States, junket programs rebate a percentage of loss to the junket organiser or player.

Dealing with actual loss, however, is a difficult and often misunderstood issue. A common premise is that “so and so is a born loser” or “the money’s in the bank” or “they do it in Vegas (or at Caesars/Hilton etc)” and therefore giving a percentage of loss back to the player is alright.

The problem is that the percentage rebated is often plucked from the air and has no mathematical basis. This then leads to the fact that often no one knows what the theoretical or long term cost of such a policy is to the casino company.

In most business organisations understanding cost implications are a central premise to operating effectively. Casino Operations should be no different particularly in an area where the rebate is a totally hard cost.