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Features of betting business, tips and tricks for beginners businessmen

Gambling is one of the oldest businesses. It is believed that the bookmakers margin is relatively low: the businessmen all over the world talk about 7-10% depending on the success of the establishment. Simply put, bookmaker has a profit of 10 euros on conducted through cash 100 euros.

Where to start?

How to open a bookmakers? Before the opening of the gambling business in Europe it makes sense to conduct market research – for example the betting market in Spain is fundamentally different from the same business in the UK (in England they take bets literally at all, in Spain – only at a few sports events; the conditions for obtaining a license differ too).

Decided on the country, choose the place of opening. Office for receiving bets can be placed anywhere, as it could easily fit on four square meters. However, its location should be chosen wisely. Most bets are made by men (about 95%), so the office should be there where lovers of male sports come together.

Types of offices

Bookmakers depending on the bets they accept can be divided into three segments: economy, medium and high-end.
Probably a cross-site may be considered as a the main factor to open the office in economy segment. Bookmaker office of this type can be operated at the station, at the station square, central city streets, stadiums.
The offices of medium and high-end types require special attention to the place they are opened at. It should be chosen among the large business centers, hotels (at least four stars), the casino. First, we should consider the high-end casino type. In fact, the client who got excited in poker game will easily make a couple of risky bets on horse racing without burdening themselves to calculate the probability of loss.

Bookmakers is now low-cost in terms of moneyed assistance of its operation. All that is needed is this room (several square meters), cash desk, a computer with an internet connection, printer, copier. However, it is necessary to invest in the bookmakers software. Office work is impossible without high-quality software. Then the entrepreneur has to choose: either to pay for the program development, it can cost tens of thousands of dollars. The use of ready-made program is much cheaper – but the final cost will depend on your turnover.

Gambling business in different countries. Short review.

Gambling is legal in most countries of the world. They have a different culture and religion. Their economic and social level is also different. Therefore, regardless of the country legalization of such a business pursues the same goals: creation of new jobs, the mobilization of tourists, increase in revenues to the treasury of the country. Let’s take a look at successful examples of legalization of such business in different countries and with their regulation principles.casino

Georgia

Government’s attitude to the legalization of business based on gambling is the following: this activity is regarded as a secondary method of attracting finance to the state treasury, thanks to gambling tourism. Reforms in this country implied the following directions: tourism development, attracting foreign investors. Despite the law prohibiting existence of gambling houses that was proposed in 2012, gambling business is developed steadily in Georgia at present.

Macau

Macau (China) has become famous for the large number of its luxurious gambling casinos, numbering 33 units. Every year high service of local casinos not only attracts 2 million tourists who actively finance treasury (over 50% of Macau GDP) but also provides job opportunities for Macau citizens.

Malta

Gambling legislation of this state allows to open the casino to anyone who is interested and has the required amount of money. The state provides security for business in this type of activity. Malta is the only place where the types of gambling businesses are clearly regulated by local laws.

Singapore

Despite the fact that the first casino was opened here only in 2005, this place is the second center of the gaming industry in the world after Macau. It attracts many famous wealthy visitors. The secret of success is following: rather than build gaming facilities “on the outskirts” and allow anyone to enter into gaming places for free and make the lowest bets, the local authorities have done the opposite: gambling zones are located in high-end luxury areas, admission to the casino and each subsequent game is regarded as the most expensive on the planet.

India

Today, India is on the ninth line of the rating by the profits from gambling worldwide: more than 200 casinos were created here and you can meet any kind of gambling here. And it is despite the fact that the gambling law officially allows existence of the lottery and jumps. The government believes that this activity is a developing area of ​​the economy and in the future it can become one of the main items of India’s budget. But most of the profits from existing gaming houses goes to foreign investors and this fact is actively worked out by representatives of the Indian legislation.

Monaco

For everyone this small country is associated with “Formula-1” championship and the famous casino in the “Monte Carlo”. To get into this prestigious house the client must comply with the dress-code. The bets are quite large so first of all the casino of Monaco is famous for its rich clientele. Gambling business here is the main branch of the economy.

US

In the US, there are several large-scale game zones and the most famous is Las Vegas. It seems that the whole town is one big casino. Las Vegas is not the only like that in the United States: the US government is well aware that the money tourists spend in gaming establishments is a great way to replenish the coffers of the state so the investments in “reckless” business in the United States are actively encouraged at the legislative level.

 

Does the casino always beat the player? Whose side is mathematics on?

Scientists have not yet come to the conclusion about the time the gambling games appeared. But it was definitely long ago, in the times of the Greeks and Romans. Gambling gradually became an indispensable part of famous people’s social life. The first gambling house that was allowed legally appeared in Italy in Venice in the first half of the 17th century. The casino became a place not only for games but small talk and business talk too.

It is known that Louis Bonaparte was the first visitor to the Parisian gambling house and approved existence of casino. In the 19th century the casino became a special protected place to where guards admitted only well-dressed visitors.

Anyone who has ever tried to play in the casino, wondered: “Is there an algorithm through which you can win? Is there any valid winning scheme?” Players choose a comfortable strategy to win. Maybe it is just luck, but not mathematics and formulas? Let’s look into it. Not all casino visitors know math well, especially the law of large numbers or Markov chain theory. Perhaps if they were familiar with these theorems, their wallets would not become empty and the casino would not receive such a huge profit.

Why does the casino always make profit and never stay in the red?
Casino games are based on chance. It is a well-liked roulette, cards, craps and even gambling machines. In poker the player’s professionalism will affect the outcome of the game in any case. The same applies to the game “Ochko”. That’s how a blackjack is called in Russia.

Let’s analyze it step by step. What is the game of roulette?

Roulette

The word is translated from French as a wheel. It is believed that roulette wheel was invented by Pascal, who tried to create a perpetual motion machine for a long time. But he could never assume that roulette will become one of the most popular gambling games in the world and will have a purely commercial function, aimed to enrich one of the parties.

In this game a section called “zero” undertakes a winning of a gaming place. The American version is called a double zero. The wheel, which is popularly called the “spinner”, has thirty-seven cells. The 36 are the numbers from one to 26. And the “zero” is in the last 37th. In American variation there are 38 cells, two of which are labeled “0”. Although a wheel with two “0” cells was originally invented in France, but the Americans fell in love with it too. This kind of roulette quickly became popular in the United States and was called “American”. A wheel with one “zero” cell was now called “European”. There were many variations of roulette. They came up even with a third “zero” cell or reduced the numbers quantity.

The player can bet either on the available numbers or a group of numbers. You can also bet on blacks or reds, as well as even or odd numbers. But in this case the amount you gained will be much smaller than if you guessed specific number or a group of numbers.

If there were no zero, it would be much easier to win and the chances of the player would have been greater. But it turns out that there still is a casino advantage over the player, which is 2.7%. In the American version – 5.4%.

Imagine that the player selects a certain number and makes his bet. Thus, the chances to win are 1 out of 37 and to lose – 26 out of 37. Casino gets a good winning by the formula: (36/37 X 1 ruble) – (1/37 x 35 rubles) = 1/37 rubles (more than 2.5 kopecks).

Of course, the player has a chance to win, but it is very small and the gambling place has more chances to enrich and add player’s money to its treasury.

Craps or Dice

According to the historical research, dice were invented in ancient Greece. When archaeologists intervened into this case, they proved that the dice appeared much earlier. But the game similar to modern craps appeared in England at the turn of 11-12 centuries. During long Crusades the soldiers amused themselves by gambling – Hazard. The game became popular quickly. Especially the upper classes of society enjoyed this game. Then the dice was brought to France, where it became known as craps.

Rules of the game are extremely simple. Shooter, so called player, throws a pair of dice. Winning depends on the number of points. Player wins if the sum is seven or eleven, and loses if it is two, three or twelve. There are other amounts, but they do not result into any gain or loss. The player rolls the dice until the win or lose is achieved.
In this game there are other members who make their predictions, trying to guess what result falls. In this case, casino is not related to this game, because the player rolls the dice and is responsible for the result of the crucial throw.

But again, the casino wins. Why? Such is the bet size that players will benefit much less than they could if it was calculated on the basis of probability theory.

Besides roulette and the popular game of poker, there is also the so-called “one-armed bandits” in casino.

«One-armed bandits»

These gangster machines appeared in America in the late 19th century. Charles Fay designed such machine in the garage and called it “Liberty Bell”. Realizing how much profit a machine brings, he created lots of such “one-armed bandits” and installed them in all entertainment places in the city. When the number of orders increased and Charles Fay couldn’t cope with it all anymore, he opened the whole production. Unfortunately the factory burned down in the early 20th century. But the “one-armed bandit” did not disappear from the most visited and popular US places. And the opposite is true. Interest to gaming machines grew gradually. Playing the “one-armed bandit” is popular till today.

Anyone can play the “one-armed bandit”, it’s not poker, and you don’t have to know the rules or think logically. Everything is at your luck. And now the Internet offers a large number of online casino pages where you can play the “one-armed bandit” without leaving your house.

Despite the seeming popularity of the roulette and poker, over 60% of players who come to the gambling houses spend their leisure time hitting a jack-pot at the “one-armed bandits”. This statistic was compiled in 2013. The stake is small, the rules are simple. That’s the whole secret of gambling machines, even among the poorer segments of society.

If you remember the history, originally gambling machines were mechanical. The player released the spring and thus revolved the reels with various pictures. Now there is a computer chip instead of spring. And the reel is displayed on the screen. If player reveals three identical images he wins. Seems to be fair but it’s not. Each machine is programmed in a certain way. “Bandit” returns around 80-90 percents of money. However, the percentage is 98 in Las-Vegas.

The machine is adjusted to have certain pre-programmed tables. A person who programs machine can make it rather generous but no more than that. You will win, but the total amount still remains in the red. The machine returns around 80% of the money you invested, up to 90%.

In the Internet you can find many ways how to win in the casino and how to make the right bet. Many sites both paid and free promise an absolute winning formula to the visitors. Theory of probability runs smoothly but the excitement overshadows eyes and people stubbornly try to fight it.

The famous strategy that supposedly gives a win in roulette is to constantly dwell on the color – black or red, or parity digits – odd or even. After every loss the gambler doubles his bet. The chances to win are determined by 18/37. This strategy is called Martingale. It is proved that such scheme is not efficient, because player constantly increases his bet and loses money. But the funds may end up much sooner than a winning combination occurs. But a gambling house hedges too and limits the max bet size.

There is another interesting strategy blindly believed by many people. It is a scheme based on a positive progression. And it is also not efficient. Players who chose it should increase stakes each time they win and lower at a loss. Such scheme will not enrich you, and obviously the player will not leave his money at the gambling house quickly. But the casino always has an advantage, regardless of the player’s bet size.

Another strategy is to constantly bet on the same number, the so-called favorite number. However each number can’t come up once. It is not a lottery. Winning numbers aren’t eliminated but remain in the game. Therefore, the numbers can be repeated, and the same number can come up again and again. A favorite long-awaited number can never come up during the game. You can create a formula for a favorite number to come up:
37! / 37 to the power of nX (37-n)! where n is a number of laps – turns of the wheel. “!” is a factorial. But once again, the chances are very small, and there is no sense to follow this unproductive scheme. Unless you dreamt about this number and you’re Herman – a hero of Pushkin story “The Queen of Spades” who hears the voice of the dead Countess naming the three winning cards: the three, the seven, and the ace. Later this combination turns into compulsive idea for a hero, it helps to win but at the end of a story it thoroughly bankrupts him.

There is another theory called Biarritz. The idea of the system is that some numbers come up not only once but several times.

According to this strategy players watch the game and keep an eye on the leading numbers. However they do not bet. When players notice numbers that come up constantly they start to bet on these numbers or avoid them and focus on other options. Mathematics is not an easy science, but Biarritz system accentuates that if the number didn’t come up it doesn’t depend on the ball that felt into this cell before or missed it.  But this algorithm is still actively used by players and its popularity grows.

Gamblers do not despair and sincerely hope that a winning combination appears even after a long series of losses and unsuccessful combinations. Good luck is sure to come; you only need to be persistent and never stop or give up. Playing in a casino is like life – it is a zebra. The black stripe cannot last forever. And finally, after all failures, the player breaks the bank and is rewarded for his perseverance and patience. Slot machine programmers intentionally designed tables that almost reach the winning. Pictures almost stand into one line. Player who saw it tries to play again in the hope that this time the reel turns rightly. That’s what the whole “one-armed bandits” system is built on.

But the players still have a small chance. For example, if the wheel in the gambling house is faulty, it increases player’s chances. Once an incident occurred with Joseph Jagger – an engineer from England. Faulty reel in the gambling house helped English gambler. He watched the falling numbers for a long time, led statistics and revealed the numbers that appeared more often than the others. He wrote them down and began to bet on those numbers only. In 4 days he won 370 thousand dollars. Despite the casino owners trying to prevent him by all means (they changed the reels, pulled out cells and mixed them), he still won a decent amount, left Monte Carlo and completed his way of compulsive gambler. Such faulty reels can still be found today, but remember that with the advent of security cameras you are watched closely and you will be quickly detected.

There is a concept of precise calculation. There are no random combinations or making bad shots. Here you are guided by the laws of physics and you can clearly determine where the ball falls. It is necessary to calculate the speed of the wheel, the size of cells and ball. A story once happened with the geniuses of physics who used a laser, cell phones and computers and won over a million pounds. It happened in 2004 in London. Casino owners have sued. But the lucky ones got away. The court admitted that they did not touch the ball and did not affect its movement on the reel. The suit was dismissed and the casino remained a loser in this case.

Players often do not consider the power of probability theory. In 2009 in Bulgaria the lottery, which is held fifty-two years in a row twice in a week, resulted with the same numbers. There was a scandal and many fans of the game were outraged and exposed organizers in dishonesty. But it turned out that on the basis of the formula n x n-1/2, repeating combination is quite possible to occur. In this formula, n is the number of games been played.

Of course some lucky men are likely to break a big jackpot and sometimes the media reports about it. For example the biggest win in Russia belongs to Albert Begrakyanyan from Leningrad. He won a hundred thousand rubles in the casino. But according to the newspapers this amount did not last for long. He spent it in two years and returned to his previous regular life. So is it worth calculating the winning formulas and rely on luck? Playing with the fortune is dangerous, because you can lose money and yourself both.