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How do advantage players exploit casinos’ premium offers? Simulations and solutions

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  • Wen-Jen Hsu
  • Bin-Tzong Chie

Abstract

This paper uses computational and stochastic measures to demonstrate the negative impacts on the casino business of advantage players that legally rely on their knowledge to continuously make profits at licensed casinos worldwide. We present the stochastic process utilized by the advantage players to make profits from premium offers. We show in detail how players estimate the probability of reaching the win goal, the net-expected-win value, and the total expected return. In addition, a simulation is conducted to determine the amount of the starting capital that is needed before participating in games. The findings provide significant implications that advantage players are capable of exploiting premium offers and profiting from the casinos.

Suggested Citation

  • Wen-Jen Hsu & Bin-Tzong Chie, 2021. "How do advantage players exploit casinos’ premium offers? Simulations and solutions," International Gambling Studies, Taylor & Francis Journals, vol. 21(1), pages 74-91, January.
    • Handle: RePEc:taf:intgms:v:21:y:2021:i:1:p:74-91
    DOI: 10.1080/14459795.2020.1801794
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