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Named one of the top seven books that
every casino executive should have in his or her library, this book presents the
mathematics underlying casino games, provides a precise account of the odds
associated with the games, and describes the role of mathematics in casino
gaming management. A primary goal is to allow the reader to understand how and
why casino games produce revenue. Topics include basic principles of
probability, odds, expectation, house advantage, common casino measurements, the
law of averages, price setting using game odds, gaming regulations, standards
for fairness, player worth, complimentaries, and rebate programs. All major
casino games are explained and relevant mathematics illustrated. No formal
background in mathematics is necessary, although comfort with basic quantitative
reasoning is helpful. The main intended audience is casino managers, or
potential managers, but this book will serve as a valuable reference for anyone
interested in the mathematical foundations of casino games and the use of
mathematics in gaming management practice. |
Practical Casino Math
is published by the Institute for the
Study of Gambling & Commercial Gaming, University of Nevada, Reno.
The Authors
Robert C. Hannum, Ph.D. is Professor
of Statistics at the University of Denver,
where he teaches
probability and statistics with special interests in gambling theory and commercial gaming. Hannum is
recognized as a leading expert in casino mathematics, acts as
a consultant to the gaming industry, and is frequently quoted in national and
international media on the mathematics of gambling and the commercial gaming
industry. Hannum has published in numerous scholarly journals and gaming
industry publications.
Anthony N. Cabot is a
partner in the law firm of Lewis and
Roca, and head of the gaming law practices for that office in Las Vegas. Cabot is
acknowledged as one of the leading authorities on casino law and Internet
gambling, with seven editions of the annual Internet Gambling Report in
print as well as numerous other books, including International Casino Law,
Nevada Gaming Law, and Federal Gambling Law. Cabot is an adjunct
professor at the University of Nevada Las Vegas, and the University of Houston.
To Order
University of Nevada Reno Institute
Gambler's Book Shop
High Stakes Bookshop (U.K.)
1. Brief History of Gambling
·
Early History of Gaming
·
U.S. Gaming Revenue: 10-Year Trends
2. Mathematical Theory for Casino Games
·
Probability and Odds
·
Permutations and Combinations
·
Expectation (Expected Value)
·
House Advantage
·
The Law of Large Numbers
·
Central Limit Theorem
·
Volatility
·
Gambling Fallacies and Systems
3. Common Casino Measurements
·
Basic Table Game and Slot Operations
·
Handle, Drop, Win
·
Theoretical Win, Win Percentage, Hold
·
Hold Percentage as a Management Tool
·
Different Ways to Express Win Rate
4. Games of Pure Chance
·
Banked Games: Slots, Keno, Roulette, Craps,
Baccarat, Casino War, Sic Bo, Big Six Wheel
·
Pooled Games: Progressive Slots, Bingo
5. Games with a Skill Component
·
Banked Games: Blackjack, Caribbean Stud
Poker, Let It Ride, Pai Gow Poker, Three Card Poker, Red Dog. Video Poker
·
Pooled Games: Poker
·
Sports Betting
6. Game Odds and Price Setting
·
Price Setting in the Gaming Industry
·
Price and Product Demand
·
Casino Game Prices
7. Volatility and Casino Operations
·
High Volatility: The Case of the High
Rollers
·
Low Volatility: The Case of the Grind Joints
·
Gambler's Ruin, Volatility, and the
Freeze-Out
8. Complimentaries
·
Value: Theoretical versus Actual Win
·
Complimentaries
9. Rebates and Discounts
·
Rebates on Theoretical Loss
·
Dead Chip Programs
·
Discounts on Actual Losses
·
Mixing Systems
10. Regulatory Issues
·
Regulations Relating to Fairness
·
Maximum Bet Restrictions
·
Restricting Minimum Price
·
Regulations Relating to Honesty
·
Advantage Play and Cheating
§
Appendices: Tables, Shuffle Charts
§
References
§
Index
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"[The first edition of]
Practical Casino Math became an instant “must read” by casino personnel…
[The second edition] remains one of the most important books ever written
for the casino industry--in particular, for casino managers or potential
mid-management, and for the player who wants to know the edge house in
virtually any game including which games are most profitable for the casino. …
Overall this is an absolute must-have for any casino management person
who's new at his or her job or needs a tune up on what games provide the
casino with the most revenue and why.'' – Howard Schwartz, Director, Gambler’s
Book Shop, Las Vegas, and world’s foremost authority on gaming and gambling
literature.
-
"Probably the best book
on the mathematics of gambling since The Casino Gambler's Guide by
Allan Wilson.'' -- Urbino Casino & Gaming Hub.
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"Although casino math has
been covered in numerous books since another mathematics professor, Dr. Edward
Thorp, published Beat The Dealer in 1962, which detailed basic
blackjack strategy for the first time, this book covers all the
mathematical aspects of the casino gambling business as no previous book ever
did.'' -- Casino Chronicle.
-
"Were
you ever so enthralled by a song on your car radio you had to pull over to
listen it was so delicious! The first time I heard Springsteen's "Born to Run"
was like that… At Gambler's Book Shop, we receive hundreds of new books every
year. Most of them are good, some are excellent and a rare few make me want to
stop what I'm doing to read right NOW. Practical Casino Math may not
have the same charisma and impact as Born to Run but this book has it! … As
far as I'm concerned, each has elevated the art form and set new standards.
Springsteen's song was referential and reverential to past writers, performers
and songs in a way perfectly analogous to this new book, co-authored by Robert
C. Hannum and Anthony N. Cabot. Both have filled an existing void and were
overdue. … It is one of the most important casino books to hit the shelves
in a long time ... the first book to come along in years that explains, in
simple, easy-to-understand layman's
terms, how the everyday mathematics of casino games works ... a book EVERY
casino floor employee and EVERYONE in management needs to read.'' – Peter
Ruchman, General Manager, Gambler's Book Club, author of After the Goldrush,
and regular guest on HBO, ESPN, and Discovery Channel.