The Logic Of The Losing Shoe

The Logic of the Losing Shoe For those in the casino industry, especially for us surveillance folks, the words ‘losing shoe’ are all too familiar. A losing shoe is a period of play, normally lasting the length of one shoe of cards (which may be from one to as many decks as the shoe can hold!), which registers a substantial loss. Ever wondered how that loss limit was set? In considering this question, it is useful to once again refer to our central limit theorem.  Here is the graph again. (Source: http://schools-wikipedia.org/) The central limit theorem proposes that up to 99.9% of all occurrences happen between -3 to -1 and 1 to 3 σs from the average or mean.  σ extends into the positive (meaning 1 to 3 σ) and negative (meaning -1 to -3 σ). In order to derive any sort of boundary in a casino game, one has to calculate the following: Probability Of Events Occurring (for more

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Concepts 9: Creating A Casino Game

Creating A Casino Game We’ve discussed the process for the creation of a casino game, namely: Calculating possibilities using combinatorial analysis Calculating the expectation Setting the odds Let’s use a simple example – something I saw in a Chinese drama. The game involves using 5 coins and tumbling them in an opaque container.  The container is then placed base up and players are then invited to make their wagers based on the permutations of the coins. Here are the calculations based on some of the possible wager types I can think of: Combinations Permutations Probability Expectation Break-Even Odds Total (5 + 2 -1!) / (5! X 2-1!) = 6 25 = 32 – – – 5 Tails 2! / 2! = 1 5! / 5! = 1 1/32 = 0.03125 0.03125 – (1-0.03125) = -0.9375 0.96875/0.03125 = 31 5 Heads 2! / 2! = 1 5! / 5! = 1 1/32 = 0.03125 0.03125 – (1-0.03125) = -0.9375 0.96875/0.03125 =

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