Casino Gambling For Dummies. Swain Scheps

and Other Superstitions

      Perhaps the biggest mistake for novice gamblers is making a betting decision based on superstitions or instincts rather than facts. Do you really think poker superstars like Howard Lederer and Phil Hellmuth win because they wear their lucky sweaters or rely on horoscope readings? No way. Winners like Lederer and Hellmuth are brilliant in analyzing the complex choices each hand offers in a high-stakes tournament. This section debunks some common hocus-pocus that gamblers mistakenly turn to.

Relying on Betting Systems

      Gamblers instinctively understand that by wagering the same amount every time, they ultimately fall prey to the law of averages and will lose. Their reasoning goes something like this: “If I could somehow vary my bets, perhaps I could come out ahead. All I need to do is win my big bets and lose my smaller ones.” Unfortunately, that strategy is easier said than done. But that hasn’t kept numerous people from trying to find the Holy Grail of gambling — a winning progressive betting system.

      Any betting system that has you change the size of your bet depending on whether you win or lose is considered a progressive system. Because most gamblers understand that the house has the edge, they vainly search for creative ways to gain the upper hand over the casino.

      

Betting systems generally come in two flavors: positive and negative. With positive systems, the bettor increases their bet after a win by some predetermined amount. The idea behind a positive system is to ride winning streaks by parlaying profits from one winning bet to the next. Negative systems are more common; they involve betting more after a loss. The idea behind a negative system is to raise your bet amount to make up for a loss or losses in one single bet. This section looks at two of the more common systems.

      

My advice: Avoid all progressive betting systems. They may look appealing, but ultimately they all fail.

      The Martingale system

      By far, the best known and most popular progressive gambling system is the Martingale system, which has been around for centuries and comes in a variety of formats. On the surface, this system seems so foolproof that thousands of hopeful gamblers think they have reinvented it, only to find out later that it’s not as infallible as they thought.

      The appeal of the Martingale lies in its simplicity. You start off by betting one unit — say, $5. Whenever you win, you continue with the same $5 bet, but whenever you lose, you double the next bet. If you lose the next hand, you double again ($5, $10, $20, $40, $80, $160, $320, $640, and so on).

      To many gamblers, the Martingale seems perfect. However, it has a couple of fatal flaws. The first problem is that by doubling up after every loss, eventually, you bump up against the maximum allowable bets in many casinos. A $5 starting unit will exceed $500 if you lose seven straight hands (which happens far more often than you may think).

But the real problem with the system is that it doesn’t work. If you’re playing a negative-expectation game, such as roulette, you can expect to lose an amount that is close to the preset house advantage of 5.26 percent. The Martingale does give you a lot more winning sessions, but they’re mostly small. Your losing trips, however, are bone-rattling.

      The D’Alembert system

      In this scheme, you increase your wager by one unit after every loss and decrease it by one unit after every win. For example, with $5 units, you bump up your bet to $10 if you lose the first bet, then drop back down to $5 if you win the second hand. However, you never go below your starting unit, no matter how many hands you win in a row.

      The D’Alembert may be a good way to keep your mind occupied, but computer simulations consistently show that no progressive system improves your overall results. Again, you encounter a lot of small wins punctuated by big losses.

Chapter 4

      Managing Your Money in a Casino

      IN THIS CHAPTER

      

Establishing and adhering to a budget for your gambling trip

      

Understanding casino credit

      

Recognizing the danger signs

      

Remembering Uncle Sam — taxes and your winnings (and losses)

      A good accountant will tell risk-taking clients that “Pigs get fed. Hogs get slaughtered.” This adage is applicable to gamblers tackling the tables as well as taxpayers dealing with the IRS. Greed and gambling are two words that go together like peanut butter and jelly, and they’re just as likely to get you into a sticky mess.

      When blinded by the possibility of winning more, you can easily end up blowing your gambling bankroll (money set aside just for gambling) in one evening — or faster. The prospect of striking it rich in the casino may make you forget that you have other financial obligations — paying the mortgage and feeding your children, to name a couple. I’ve heard and seen too many horror stories about individuals whose dream vacation to a gambling destination turned into a nightmare when they frantically began throwing good money after bad to make up for their losses early in their getaway.

      This chapter is about being sensible with your money — the cash you come with and (hopefully) the money you win as you go along. You’ll get some no-nonsense advice that any accountant or financial counselor might offer to help you manage your budget (and keep track of your wins and losses for the IRS).

Setting a Budget and Sticking to It

      

To enjoy your gambling experience, you must control your gambling experience, which means setting — and sticking to — a budget. Whether you’re taking a weekend backpacking tour in a nearby state park or a once-in-a-lifetime cruise on the Queen Mary II, you decide what you’re willing — or can afford — to spend, and then you make your plans. The same goes for a gambling getaway. First, budget for the transportation to your destination, your hotel and food expenses, entertainment tickets, and sightseeing excursions — and how much you plan to spend on gambling.

      If your main priority is to retain all your money, the best suggestion is not to gamble at all. Assuming you don’t want to hear that bit of wisdom, the next-best suggestion is to firmly decide — before you enter the doors of the casino — how much you’re willing to spend (translation: lose).

      Casinos are fantastic places where you can check reality at the door. Gambling should be a fun experience, a chance to get away from your daily stress and enjoy the escape that risk and winning can bring. But when the lines between reality and fantasy blur, when you buy into the dream and forget the budget, you can run into problems, and your money can quickly head south.

      This section helps you predetermine exactly how much money you’re willing to spend on your gambling venture. You also discover how to stick to your budget and avoid the kind of fun the casino wants to have — at your expense.

      Playing