I recently logged back into my Just-Dice account after a few weeks and was pretty pleased to see that my initial investment of 4.6 clams that I had dug from my old BTC address have now grown to 5.5 clams.
Anyway, is there a formula that is able to approximate the expected profit?
As I see it, there are four variables that would influence the profit for any given dice site:
1. initial deposit (the more you deposit, the greater your profit)
2. house edge (greater house edge = greater profit)
3. time (more time = more profit)
4. size of bets (more bets = more profit)
And a fifth variable I'm not too certain about:
5. Proportion of bankroll? (not sure if this makes a difference)
Obviously if the site takes a cut afterwards then that would affect the profit too but that's pretty obvious.
Then again, I understand this is a highly technical question perhaps more suited for mathematicians and those with math degrees so perhaps Bitcointalk might not be the right place to ask.
EDIT: OK, the following was my attempt at making a formula. I'm a bio/chem major and not a maths major so please correct me if I'm wrong:
If someone bet 1 BTC with a 10 percent house edge, the expected site profit would be 0.1 BTC. If they bet 1 BTC everyday, the expected site profit after 10 days would be 1 BTC. If one person supplied 1/3 of the bankroll and another supplied 2/3 then they would each get 1/3 BTC and 2/3 BTC respectively, correct? But how would this scale into a site such as Just-Dice?
Profit = (house edge * (size of bets per day * days)) * proportion of bankroll
where proportion of bankroll = initial deposit / total deposited across all users
So for a site with a 1 percent house edge, 50 BTC invested daily, and a 1,000 BTC bankroll that would be:
Profit = (0.01 * (50 * days)) * (initial deposit / 1000)
So you can just plug in the numbers for how much you want to deposit and for how many days to get the expected profit?
Is this correct?