Chance is the Name of the Game
Understanding the concepts of chance and odds and the meaning of house edge, or casino advantage, is essential for gambling to remain enjoyable.
Recognizing the beliefs that may mislead us is just as crucial.
Chance is unpredictable and uncontrollable.
First, it’s unpredictable because it’s random—just like when we blindly take something out of a bag.
It’s also unpredictable because of what’s called the independence of events. This means that, with each new game, all the possibilities go back “inside the bag,” as opposed to when we draw names out of a bag, for example, and the drawn names are excluded with each new round.
The independence of events shows us that we can’t predict the result of a round or a game by observing previous outcomes.
So, each time we press play, start a new hand or make a new bet, the odds of winning and losing are the same as the time before and the next time. Every time we throw the dice, we have one chance out of 6 of landing on the “6,” even if no one landed on it during the previous four rounds.
The house leverages chance and odds.
In games of chance, the odds of losing are always greater than the odds of winning. Games are designed to leverage chance while giving the house (e.g., casinos or lottery corporations) an edge or advantage.
Take slot machines’ return-to-player ratios, for instance. They’re set to guarantee a certain return percentage to players (based on all wagers made by all players) while ensuring the casino makes a profit.
