How can casinos profit from investments?

[shanem]

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

[michinzx]

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

this exactly, the casino takes both a percentage of the profit from player's losses and take a very small percentage cut from each bet, take a look at bitvest for example. in the long run, this should prove less risky and more profitable from the percent cuts for the casino compared to not accepting investments. plus, the prospect of investments attracts many people to a site i would bet.

[BTCevo]

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

This might be true but mostly they want to get more fund just in case someone win big and they still can cover it so the site would not be bankcrupt. They always calculate it well how they will be profit from the investment and from the players too before they open a new casino. Thats why they will never loss

[Shogen]

Casinos don't really use investment to make big profit. The main reason for allowing investment is because casinos want to spread the risk to other players. Casinos only take a small cut of any profit from the investment.

This might be true but mostly they want to get more fund just in case someone win big and they still can cover it so the site would not be bankcrupt. They always calculate it well how they will be profit from the investment and from the players too before they open a new casino. Thats why they will never loss

Regarding the bold part, a sensible gambling site owner should always set the max profit based on their total bankroll in real time. No matter if they have a big or small bankroll, they could lose some money but will not go bankrupt.

[WEBcreator]

Regarding the bold part, a sensible gambling site owner should always set the max profit based on their total bankroll in real time. No matter if they have a big or small bankroll, they could lose some money but will not go bankrupt.

Max profit is usually on the same as the house edge of the games so if there is 100 btc bankroll and 1 % house edge then the max profit you can win in one roll is only 1 btc and so on

[Shogen]

Regarding the bold part, a sensible gambling site owner should always set the max profit based on their total bankroll in real time. No matter if they have a big or small bankroll, they could lose some money but will not go bankrupt.

Max profit is usually on the same as the house edge of the games so if there is 100 btc bankroll and 1 % house edge then the max profit you can win in one roll is only 1 btc and so on

Not necessarily. Just-dice, for example, employs 0.5x Kelly by default. So even with a 1% house edge, the max profit is only 0.5% of total bankroll (including the offsite bankroll).

[Sir_lagsalot]

how casinos make profit is what you're missing. You invest into a casinos bankroll, and let's say you're 20% of the bankroll. You get usually 20% or less of all the casino's profit (no ad profit, just profit of the loss of others)

They make profit by investing their own bitcoin, or they make profit from that difference between your profit share and your investment share mentioned above.

[knowhow]

Some people use those bitcoins to invest into others casinos,and some part of them for sure play the pump and dump of others altcoins or even bitcoin,only making profit from the bets with the fees looks too small,i dont know how many bitcoins a casino plays daily,at exchanges the biggest around 1000bitcoins being traded daily.

[Astargath]

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins,

This is very weird statements. The site has nothing to lose because most of the funds will be covered by investor so the site is kind like providing service for investor and keep charging 10 % comission for free and that is totally risk free assuming that the owner of the site has no stake in bankroll

How is that covered by investors? As far as I know investors have +EV when investing in a casino so in the long term they will end up winning more money than loosing.

You have answered this yourself. If investor keep winning alot then the site will as well because the site charge percentage for commission. if a 10 % profit commission then the site take 0.1 for every 1 btc profit so the site get 0.1 btc and the investor will only get 0.9 btc. Why is this so hard for you to understand?

Because if there were no investors they wouldn't have to take any commision, they would just take the full amount of the guy who lost without having to give a percent to the investors.

[erwin45hacked]

But they are still loosing money, if an investor wins 1 bitcoin and they take 1% (0.01) they still have to pay him 0.99 bitcoins,

This is very weird statements. The site has nothing to lose because most of the funds will be covered by investor so the site is kind like providing service for investor and keep charging 10 % comission for free and that is totally risk free assuming that the owner of the site has no stake in bankroll

How is that covered by investors? As far as I know investors have +EV when investing in a casino so in the long term they will end up winning more money than loosing.

You have answered this yourself. If investor keep winning alot then the site will as well because the site charge percentage for commission. if a 10 % profit commission then the site take 0.1 for every 1 btc profit so the site get 0.1 btc and the investor will only get 0.9 btc. Why is this so hard for you to understand?

Because if there were no investors they wouldn't have to take any commision, they would just take the full amount of the guy who lost without having to give a percent to the investors.

You are not understanding this correctly that by having investment they are limiting the risk for themselves or even eliminate the risk. If they dont have stake in the bankroll then they are getting risk free profit. They are not getting alot but since it is risk free then they dont have to worry about anything if the gambler win alot

[Blawpaw]

Casinos are made to profit, not to offer money to addicted gamblers. Many Casinos are scams but the one's that are not, simply rely on the premise that a gambling addict will always lose. That's how they make money!

[LuckyYOU]

Eventually they will make a profit. The concept is that when people believe they are winning, they keep playing till they lose their winnings.

If not today, they come back and lose another day.

[klf]

Eventually they will make a profit. The concept is that when people believe they are winning, they keep playing till they lose their winnings.

If not today, they come back and lose another day.

I think the question is how casinos are profiting from investments not how they are profiting?

For any casino to run for long time they need a very huge bank roll to run so if one don't have so much budget than they will ask from public and they will offer some % of there profits to investors. If players win than casino and investors together losing money so in both cases casino have a advantages.

[jaberwock]

They share the losses and the wins with their investors, so it is the same reason as they profit at all.

I don't know any casino that will only pay if the house has positive income

[Bought]

They get more bankroll and more whales will play at their site, creating a larger chance for more profit.

[erwin45hacked]

For any casino to run for long time they need a very huge bank roll to run

Some casino run with just a small budget but the problem is that they are just not atttractive enough to get gambler with their small max profit. Getting investment is not about just getting huge bankroll but also to remove the risk so casino can always get a risk free profit for themselves

[raaajlucky]

They get more bankroll and more whales will play at their site, creating a larger chance for more profit.

Yes, all casinos need a very large funds to attract more players so they need a lot of investors if they don't have funds and they will share some profits to investors.

[erwin45hacked]

Yes, all casinos need a very large funds to attract more players so they need a lot of investors if they don't have funds and they will share some profits to investors.

This is not always correct. Having alot of bankroll as well as huge max win is not always the reason for gambler to gamble there. Betking has the highest max win in a single  bet around here but still it doesnt attract many players to gamble there. You can check their weekly status here http://dicesites.com/

[mrcashking]

They get more bankroll and more whales will play at their site, creating a larger chance for more profit.

Yes, all casinos need a very large funds to attract more players so they need a lot of investors if they don't have funds and they will share some profits to investors.

They don't need cause i couldn't manage to know how many coins does PD has in it's bankroll ,everything is speculation but still PD has the highest wager.
The investments are the best way to profit for casino cause they get free 10-20% from investors and nothing to lose unless it's their own funds which were effected due to any sudden high wins.

[Small]

For Bitcoin casinos, the system will automatically take a portion of the earnings for themselves during a specified time or when the user decides to divest.

For casinos that have POS coins, they can choose to also charge the user for their staked coins. Justdice does this.