Appendix B - Major games of chance
Published online by Cambridge University Press: 22 August 2009
Summary
In studying the financial economics of gaming, it is essential to have at least a cursory knowledge of game characteristics. This appendix is designed to provide such knowledge, but it is by no means intended as a complete guide. Many other widely available books contain far greater detail concerning the finer points of play strategy and money management (i.e., the number of units wagered at each betting decision). Tax consequences may also have some relevance.
Blackjack
In blackjack, alternatively known as twenty-one or vingt-et-un, the player's goal is to receive cards totaling more than those of the dealer, but not exceeding 21 – and to do this before the dealer has to show his or her hand. An ace card can be counted as either 1 or 11, other numbers count as their actual values, and picture cards count as 10. Suits do not matter. The payoff to a winning player is equivalent to the amount bet, that is, even money – except in the case of “blackjack” (a “natural” 21 on the first two cards), when the payoff is three units to two.
The game operator's advantage in blackjack is difficult to compute at any point of play. However, from the top of a deck, blackjack ordinarily provides the house with an edge of a little over 2%. As the game progresses, however, the house edge (which depends importantly on the fact that the dealer turns over his or her cards after the player has gone bust) may disappear, and a skilled card counter can take advantage of such moments by increasing the size of the bet at that time.
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- Entertainment Industry EconomicsA Guide for Financial Analysis, pp. 505 - 516Publisher: Cambridge University PressPrint publication year: 2007