Gambling is one of the biggest forms of entertainment across the planet; it makes people happy but sometimes sad also. Happy if people make money and sad if people lose it. You may be a great gambler, or you might have an expert group of gamblers, but in the end, the truth is always house wins. Because the house’s guaranteed win is only in the long term, and yes, during a short time period, anybody can be winning against the house. Let us see the trick behind the winnings of the house.
Why did the House win?
House wins because the casino always has a statistical edge; otherwise, you would not be gambling. This is called the house edge. If you look at something like a slot machine, while one person might win and only place a small bet, the machine, in the end, has a rate of what it pays out. This is often a payout rate of about 90 percent. It will always keep some money for itself and It is pretty simple. It is proven that gamblers play faster when they have been losing because they are expecting that one big win to come.
What these slot machines do make us keep playing is keep offering us what is called “near misses”. While it is irrational, the player sees this as almost winning. They get a dopamine rush and play on. It is exciting, after all, until it is depressing and your pockets are empty. We are also told that these machines are designed in a way to give small wins often and this makes the player feel as though they are winning. Lights will flash during these wins, music will play, and the player ends up thinking something good has happened.
The machine payouts are based on thousands, if not millions of spins, so do not go thinking just because some poor dude lost a fortune, you will do any better. Slot machines are like cell phones are made to addict you, and they always get their percentage. If you have not hacked them, that is, something that has happened numerous times in the past.
Let us take the example of roulette.
So you have taken advantage of the free buffet, and your ambitions are not what they used to be after you were piled with those free drinks that the casino was hoping you would. The casino has the edge over the players of 5.26 per cent on the roulette table. There are even odd numbers and black and red colour, but there is also a green 0 and sometimes another green 00.
As the casino always has this advantage, it will win. It does not want to bankrupt you too quickly, though, so it takes time. If you take that percentage above, it means that for every one million dollar bet, the casino will take about 50,000 dollars. This is how the house makes money, which is why the house always wins.
Why do people Gamble even if the house wins?
People gamble away astounding amounts of money every year in the United States, and here is why? The most obvious reason people gamble is for their friends because it is a fun bonding experience. Another reason is the thrill; we get a surge of dopamine coursing through our veins every time we risk something. The third reason for gambling is the Dunning-Kruger effect, a false judgement of skills. Some people fall into the mistake of overrating their capabilities when gambling. Fourth, people gamble to escape their problems or the boredom of everyday life.
And last but not least, gambling gives us an ego boost. According to the Economist, in 2013, US residents gambled away USD 119 billion. Other countries spending a lot on gambling: China(USD seventy-six bn), Japan(USD thirty-one bn), and Italy (USD twenty-three bn).
The addiction of gambling one of the other ways people research gamblers that continue to gamble after they lose is by looking at the perception a gambler sees even though gambling is based on chance where all the odds are stacked against you. Some gamblers will get bigger and bigger amounts even when they miss out on a win. This is known as loss chasing, where gamblers will continue to gamble to try and get back their money and avoid falling into debt. These are some significant reasons why people gamble if the house always wins.