Thinking of starting a Bitcoin Casino.

[x128]

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

Yeah I got it now. So as per my current calculation, the edge is 0%.

[BitcoinDistributor]

To calculate the max profit you can risk without getting broke ("risk of ruin"), generally the kelly criterion is being used. Truthfully I personally do not know the real details of this complex theory/formula :> But generally "0.5 - 1 times house edge is being used". So if your bankroll is 10 available coins and your house edge is 1%, you can risk 0.05 - 0.1 max profit per bet. If a player is lucky and you have 9 coins left, this should change to 0.045 - 0.09. You can use 0.5x or 1x depending on what you are comfortable with.

Is 10 btc bankroll enough? Well it depends if you think players are fine with a 0.05 - 0.1 max profit (based on 1% edge.)

Well, so I guess I'll need at least 100 BTC to get it started. And how do I figure my house edge out? Thank you.

That is a bit of a strange question TBH This should be already in your provably fair calculation.

If you do a coin flip, both sides have 1/2=0.5 chance of winning. This means the casino should just breakeven in the long term. Now a site with 1% edge, the player has: 1/2*0.99 = 0.495 odds to win 2x. A site with 2% edge, the player has: 1/2*0.98 = 0.49 odds to win 2x. Etc. Basically it makes sure the casino makes a profit in the long term. These days in the bitcoin gambling community just a 1% house edge is the standard (which is low compared to traditional casinos.)

So yeh, I think you should probably have 1% house edge but it depends on your game.

Yeah I got it now. So as per my current calculation, the edge is 0%.

1) You have to have a house edge or literally you are gambling every spin with the player. You have no edge to make a profit in the long run. YOU NEED at least 1% edge to survive imo.

2) Look up Kelly bankroll management for how much of a bankroll you want to have depending on what your max win will be.

[elm]

You are getting a lot of good tips but after reading your questions and answer it looks like that you are a coder but you don't have any clue about gambling and online casinos. IMO  you would need a partner who is familiar with gambling and casino games. no offense intended and good luck

[x128]

You are getting a lot of good tips but after reading your questions and answer it looks like that you are a coder but you don't have any clue about gambling and online casinos. IMO  you would need a partner who is familiar with gambling and casino games. no offense intended and good luck

Yeah not much of knowledge about the working of the casinos, yes. But the site is functional. I just had that doubt about the edge.

[fox19891989]

So I've recently coded a Bitcoin Gambling site (only one game - hi/lo). It works fine, provably fair, and all. I stil have to work on the frontend though (styling, responsive design, etc.). That won't take much time. I'm planning to get the site up and running. I have a few questions:

1. Legal aspects. Would I need a license?
2. What should be my pot/bank size to get it started?
3. Best practices for running a BTC Gambling site (any BTC casino owners answer this please).
4. Any tips you'd like to give me?

Thanks.

1. No, you don't need, most of btc gambling sites don't have a license, some casinos claim they have curacao gambling license, but I think it means nothing, it is not famous, and can still scam people, unless they get nevada license, UK license(bet365, williamhill, labroke and so forth has it), Macau gambling license or Philippines cagayan gambling license(http://www.firstcagayan.com/).

2. only 1 game - hi/lo, I think 10btc bankroll is enough, because not many guys like playing this game. I am afraid that not many players would play this game.

3. I am not an owner, sorry.

4. tips? Why not run texas holdem or omaha poker site? If you only offer hi/lo.

[elm]

You are getting a lot of good tips but after reading your questions and answer it looks like that you are a coder but you don't have any clue about gambling and online casinos. IMO  you would need a partner who is familiar with gambling and casino games. no offense intended and good luck

Yeah not much of knowledge about the working of the casinos, yes. But the site is functional. I just had that doubt about the edge.

I would tell you to take the game you have right now as a learning experience = learning by doing

start with moneypot and start learning the gaming business.

are you a coder by business? and how did you get the hi low idea?

[x128]

You are getting a lot of good tips but after reading your questions and answer it looks like that you are a coder but you don't have any clue about gambling and online casinos. IMO  you would need a partner who is familiar with gambling and casino games. no offense intended and good luck

Yeah not much of knowledge about the working of the casinos, yes. But the site is functional. I just had that doubt about the edge.

I would tell you to take the game you have right now as a learning experience = learning by doing

start with moneypot and start learning the gaming business.

are you a coder by business? and how did you get the hi low idea?

I just code in my free time. But am very fluent in PHP, Python, and a few other languages.  I play on PrimeDice every now and then, so I thought why not code a casino myself. That's how I got the idea

[shanem]

I am not good as business.
You need to have some features in your casino that makes it stand out from the rest.
What do you have to attract people to join your casino?

[sherbyspark]

I am not good as business.
You need to have some features in your casino that makes it stand out from the rest.
What do you have to attract people to join your casino?

For attracting new people, what works out is getting people to try out your casino, and if they get hooked , they will likely stay. So some giveaways or free bonuses on site usually works well in that way.

[x128]

I am not good as business.
You need to have some features in your casino that makes it stand out from the rest.
What do you have to attract people to join your casino?

What I coded, is just a bare-bones version of what I have in mind. I have a few ideas, which I will roll out one-by-one, soon after setting the site up.

[ClamCoin]

I am not good as business.
You need to have some features in your casino that makes it stand out from the rest.
What do you have to attract people to join your casino?

What I coded, is just a bare-bones version of what I have in mind. I have a few ideas, which I will roll out one-by-one, soon after setting the site up.

Good luck man. Hope you make a world famous casino.