Responsible gambling - Consumer Affairs Victoria

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A2
What are my chances?
c) What happens to ‘outside bets’ when the winning number is 0?
GAMBLER’S HELP LINE
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Responsible Gambling | Section A: What’s the big deal?
Consumer Affairs Victoria | consumer.vic.gov.au
d) Why would Crown make this a condition of outside bets rather than inside bets?
Exercise 4 – House edge
Crown Casino adds another house number to roulette wheels
Ian Royall and Michael Warner
April 18, 2008 12:00am
CROWN casino has almost doubled its chances of winning on the roulette wheels by adding an extra
house number.
Crown bosses have confirmed that 00 has been added to some wheels, which also retained the single 0.
Critics deplored the move, which would pump up the casino’s profits at the expense of gamblers.
Crown defended the change, saying that many other casinos also operated the same system.
The change applies to the casino’s $2.50 wheels only.
“This also allows Crown to continue to provide roulette at the low-end price for patrons, as it is not costeffective
to provide roulette without a double zero at a lower denomination,” a company statement said.
The change does not apply to the casino’s high-roller areas, including the Mahogany Room.
A gaming industry expert said the new wheel would increase Crown’s edge from 2.7 per cent to 5.6 per
cent, effectively doubling roulette profit margins.
Despite the extra number, roulette payouts will remain at 35-1, he said.
“It’s ridiculous that they can get away with this,” he said.
“They are just taking advantage of innocent people.”
Double 0 was common in American casinos, he said.
Mark Zirnsak, head of the Victorian Interchurch Gambling Taskforce, said the change was a further
indication of why people should be wary of gambling at Crown.
“Obviously, Crown has increased its chances of winning by inclusion of the double zero,” Dr Zirnsak said.
“This is a game that’s stacked towards the house and if you gamble, expect that you will lose money.”
The Victorian Commission for Gambling Regulation approved the change.
Source: Herald Sun 18 April, 2008
All casinos build in a house advantage, or house edge, in order to make a profit for themselves.
Consider the information in the chart in Exercise 4 as well as this newspaper article.
a) What are the consequences of introducing ‘00’?
b) Explain how the gaming industry expert reached the conclusion that Crown’s edge would go
from 2.7% to 5.6%.
1800 858 858 www.problemgambling.vic.gov.au