An in depth analysis: Profit vs. penetration

bj bob

Well-Known Member
I would like to take the occasion of my 1000th post and dedicate it to those of you who dwell on " the other side", i.e.the fine folks of casino management, both prowling the pits and crunching the numbers upstairs.
Recently I undertook the arduous task of covertly timing and detailing real-time table play on a DD, $25 game. My observations and conclusions are as follows:
The table consisted of four players pretty much throughout the entire hour. There was one player flat betting $25 while her husband(?) flat bet $50 consistently. The other two randomly bet between $25 and $100 each. The average bet across the table was pretty close to $50 throughout the entire session. Having established the avg. per player bet I then carefully calculated the exact dealer penetration. This was very easy to do since I wasn't playing, just counting the number of cards dealt. The first dealer was very consistent at 50% varying between 48 and 55 cards per deal over 4 deals. I then clocked the average shuffle/ down time between deals and recorded the total 'down time" per hour vs. actual deal time. Then came the difficult part.
It took a while to observe another DD game with the same conditions except deeper penetration. I finally observed another dealer dealing with some magnificant penetration talant--around 80%. She looked like she'd worked there for a while and had the cards airborne two / three at a time. The only problem here was there were only two players seated, so I waited. As luck would have it a guy came up to me and asked if this was a hot table. I told him (lying through my teeth:grin:) the dealer was busting almost every hand. He then sat down and soon signaled to a friend to make four. This particular dealer continued for 10 more minutes before her relief came and I stopped the timer figuring she'd be back soon and about 20 mins. later she returned. It turned out that this was her last rotation of her shift , but that left me exactly 30 mins. of raw data and enough to extrapolate accurately.
Having gone to my room to crunch the numbers I learned that the 80% dealer was able to avoid 3-4 shuffles / hour, thus able to deal an extra 24-32 hands over that same period. Now assuming a 2% house advantage against each player at a $50 average bet, each extra hand dealt was worth $1 to the house thus resulting in an additional $24-32/ hr. table profit. My best guess is that the extra pen. actually paid the dealer's salary plus benefits. One other interesting observation. yet hard to quantify, was that the players tended to resize (lower) their bets at the beginning of every shuffle. So it would seem that the deeper dealer was, in effect, producing a larger average bet/ player.
My conclusions were easy to deduce. Deal deeper into a deck/ shoe. you idiots. Your paranoia is costing you your entire labor/ benefit overhead, especially at a 1/2 to full table and FYI, counters do NOT like crowded tables and even if there were one effective counter at EVERY table you would still break even.
 

21forme

Well-Known Member
aslan said:
At the Borgata, the marching orders are "reasonable pen unless their is money present." With big money being wagered, I've seen them go almost 50% pen in a 6 deck game. Talk about preventive measures! Nobody's going to win big against those tactics.
Are you syaing the pen in the high roller pit is 50%? I've never walked in there, as there are too many familiar faces. This is typical casino stupidity. They are slowing down play for the big money slows their profits. How many of the big bettors are counters?
 

aslan

Well-Known Member
21forme said:
Are you syaing the pen in the high roller pit is 50%? I've never walked in there, as there are too many familiar faces. This is typical casino stupidity. They are slowing down play for the big money slows their profits. How many of the big bettors are counters?
I haven't visited the high roller pit or talked with anyone who works there, but on the typical $50 and $25 tables, where players are betting stacks of $100 chips, a dealer said that this is the protocol. I witnessed it myself last week when a group of Europeans were betting a $1,000 at a time. It wasn't immediately, but after a while they brought in a dealer who cut the shoe almost in half, whereupon I took a bathroom break. It was not long after that the Europeans were sent packing. I have to assume that they use this or other equally effective tactics in the high roller pits. BTW, the Europeans were betting so erratically, with no tie to the count, so the delay was possibly because there was little fear they would defeat the house, poor pen or not. I don't know. Also. I don't know how efficient the pits are in getting on top of a situation, but clearly from talking to the dealer, they are well aware of the dangers and what measures to employ against them.
 

EasyRhino

Well-Known Member
Bob, thanks for running numbers. hand shuffled or ASM? And when you say ~32 hands per hour, you mean four rounds of four spot per round?

Also, congratulation on your most boring hotel stay ever. :)
 

Mimosine

Well-Known Member
bj bob said:
FYI, counters do NOT like crowded tables and even if there were one effective counter at EVERY table you would still break even.

actually this is where your calculation fails.

if you have 5 players at a table, 4 playing perfect BS at HE -0.5%, 1 counting with a net edge of 1% over house (i think this is generous, though not sure for play all). then the house edge for the table is still -1%. If the 4 non-counters are not playing BS, let's give them a HE of -2%. then the net result for the house on the game is -7%. In either scenario the house wins, and as your calculations predict, the more they deal/hour the more money they can rake, regardless of having 1 counter at each table. in reality, there may be 1 counter in 1 casino that is capable of beating a game on any given day. If your casino is dealing to 30 seats 29 of which have a HE of ~-0.75% (Bad BS + good rules), one counter with a +1%, then still, more depth gives a greater gain. I could go on with hypotheticals, but think i have proven my point. someone else can correct the math and counter edge of 1% if they like, but i disagree that 1 counter and 4 non-counters playing perfect BS gives the house 0% advantage.

the other important point is that if you have 1 counter at a $10 table, and 30 non counters at a $25 table, then again the net rake for the house is barely affected. If you have 1 counter at a $100 table and 100 BS players at a $5 table, then the net rake might change as well. assuming that all players are betting the same one good counter does not affect anything.
 

bj bob

Well-Known Member
EasyRhino said:
Bob, thanks for running numbers. hand shuffled or ASM? And when you say ~32 hands per hour, you mean four rounds of four spot per round?

Also, congratulation on your most boring hotel stay ever. :)
This game was hand shuffled, Bro. It took between 55 sec. and 1:15 to do her thing along with coloring up and checking in comp cards.
What I meant about 24-32 hands / hr. is that she could have dealt 8 extra hands (2 rounds to 4 players) in the same time it took her to complete the (unnecessary) shuffle, thus the 50% pen game was shuffled 3-4 more per hour and so resulting in the 3/4 x 8 hand number.
No congtrats necessary, since it beats the hell out of your unique version of navel gazing. I still stay up at night wondering (since you live in SD) if you're staring at your belly button, the fleet coming into Coronado, or the orange groves. Just color me perplexed.:confused::confused:
 

bj bob

Well-Known Member
Mimosine said:
actually this is where your calculation fails.

if you have 5 players at a table, 4 playing perfect BS at HE -0.5%, 1 counting with a net edge of 1% over house (i think this is generous, though not sure for play all). then the house edge for the table is still -1%. If the 4 non-counters are not playing BS, let's give them a HE of -2%. then the net result for the house on the game is -7%. In either scenario the house wins, and as your calculations predict, the more they deal/hour the more money they can rake, regardless of having 1 counter at each table. in reality, there may be 1 counter in 1 casino that is capable of beating a game on any given day. If your casino is dealing to 30 seats 29 of which have a HE of ~-0.75% (Bad BS + good rules), one counter with a +1%, then still, more depth gives a greater gain. I could go on with hypotheticals, but think i have proven my point. someone else can correct the math and counter edge of 1% if they like, but i disagree that 1 counter and 4 non-counters playing perfect BS gives the house 0% advantage.

the other important point is that if you have 1 counter at a $10 table, and 30 non counters at a $25 table, then again the net rake for the house is barely affected. If you have 1 counter at a $100 table and 100 BS players at a $5 table, then the net rake might change as well. assuming that all players are betting the same one good counter does not affect anything.
Let me try and clarify what exactly I was trying to analyze here and maybe we can end up on the same page. I could have used any min. game or any set of rules. It didn't matter for these purposes as long as the two games I compared had different pens. with the same amount of players. It just so happened that the two tables I evaluated was inhabited with very poor playing ploppies, splitting 10's (- count) , splitting 4's v. 9 etc. so my hunch was that these folks were playing at a -2% HA (real generous here). I saw no one playing at close to even BS level. Actually, this was a good thing since one can assume that the vast majority of Nevada BJ traffic plays this way. The 1% anomaly is the perfect BS player and the actual frequency of a genuine counter is perhaps 1/1000. We can debate these ratios all day 'cause no one really knows for sure.
The one element of my original post which I failed to tie together was the $24 profit loss with due to the presence of an AP. I arrived at that number because that is what I calculate the extra EV that an AP would realize given the added benefit of greater pen., i.e. 1 additional unit( $25) / hr.
The underlying point of my original post was, and still is, is that added penetration is an extremely valuable asset to the casino and can be implemented 24/7/365 at every table in the house ,whereas the relatively rare AP can be easily targeted. It all boils down, however, to that age-old human condition of greed vs. fear and until those numb skulls realize how much of their profit they're pissing away they'll just continue to stick to fear.
 

Mimosine

Well-Known Member
bj bob said:
The underlying point of my original post was, and still is, is that added penetration is an extremely valuable asset to the casino and can be implemented 24/7/365 at every table in the house ,whereas the relatively rare AP can be easily targeted. It all boils down, however, to that age-old human condition of greed vs. fear and until those numb skulls realize how much of their profit they're pissing away they'll just continue to stick to fear.
and i agree completely! :grin:
 

aslan

Well-Known Member
bj bob said:
The underlying point of my original post was, and still is, is that added penetration is an extremely valuable asset to the casino and can be implemented 24/7/365 at every table in the house ,whereas the relatively rare AP can be easily targeted. It all boils down, however, to that age-old human condition of greed vs. fear and until those numb skulls realize how much of their profit they're pissing away they'll just continue to stick to fear.

That's a very astute observation. Do the casinos have Forums where this thought could be posted by a "casino employee" as a way of maximizing casino profits?
 

blackjack avenger

Well-Known Member
So The Players Leave

**Quote removed by request**

Of course there are those who would get tired of all the shuffling and leave. If a civilian see them move up the cut card they may think the casino is cheating and also leave. The casinos thinking is so wrong. If they are afraid they will lose money if they deal cards then they should stop dealing period. The casinos make money dealing cards so they should deal the cards!!!!!
 
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EasyRhino

Well-Known Member
Be careful of the one other "obvious" conclusion that a casino could come to from such a time and motion study: all CSMs, all the time.

Thank god enogh players are superstitious to avoid them.
 

Kasi

Well-Known Member
Mimosine said:
if you have 5 players at a table, 4 playing perfect BS at HE -0.5%, 1 counting with a net edge of 1% over house (i think this is generous, though not sure for play all). then the house edge for the table is still -1%..
I don't think you can sum HE's like that lol. If all 5 players bet $200/hand, the house wins $4 from the 4 BS players and loses $2 to the counter. The house has won $2 on $1000 bet. The HE has been reduced from 0.5% originally to just 0.2% because of the counter and the house's expected profits have been slashed by 60%.

If the counter's avg bet is 2-3 times the min bet due to spreading, say $400 in this case, the house is now making no money at all at this table. Any more than that and it is now losing money and only loses more per hour the more hands it deals per hour.

In any case, it's not hard to see why the house doesn't want even 1 counter at a table.
 

Blue Efficacy

Well-Known Member
EasyRhino said:
Be careful of the one other "obvious" conclusion that a casino could come to from such a time and motion study: all CSMs, all the time.

Thank god enogh players are superstitious to avoid them.
Or, along that line, get rid of DD. They have to shuffle a lot less with 6D. Even less with 8D!
 

sagefr0g

Well-Known Member
bj bob said:
......It all boils down, however, to that age-old human condition of greed vs. fear and until those numb skulls realize how much of their profit they're pissing away they'll just continue to stick to fear.
heh heh i don't blame em.
i don't like it but i don't blame em. :)

edit: if only the sub-prime mortgage idiots were so careful.
 
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aslan

Well-Known Member
blackjack avenger said:
Of course there are those who would get tired of all the shuffling and leave. If a civilian see them move up the cut card they may think the casino is cheating and also leave. The casinos thinking is so wrong. If they are afraid they will lose money if they deal cards then they should stop dealing period. The casinos make money dealing cards so they should deal the cards!!!!!
Actually, the BPs didn't last long after that. In fact, the house did extremely well that one shoe, enough so that one of the BPs dropped out and the other only played one more shoe before packing it in. If they had held their own, I am wondering if the house would have continued cutting more than 2 1/2 decks. As it turned out they quickly returned to 70% - 75% pen on average with as much as 80% pen from one dealer. BTW, this table used an ASM so the frequent reshuffle is not something the non-AP players would generally object to.
 

bj bob

Well-Known Member
Kasi said:
I don't think you can sum HE's like that lol. If all 5 players bet $200/hand, the house wins $4 from the 4 BS players and loses $2 to the counter. The house has won $2 on $1000 bet. The HE has been reduced from 0.5% originally to just 0.2% because of the counter and the house's expected profits have been slashed by 60%.

If the counter's avg bet is 2-3 times the min bet due to spreading, say $400 in this case, the house is now making no money at all at this table. Any more than that and it is now losing money and only loses more per hour the more hands it deals per hour.

In any case, it's not hard to see why the house doesn't want even 1 counter at a table.
I think everyone's missing the point here. I'm talking about games that are already being offered (honest Injun!) and therefore if a counter is already playing at decent DD game, let's say 66% pen with good rules, he may be making 2 min. units/ hr. If the pen. goes up to 80%, his EV may hit 3/ hr. which is the $25. On the other hand, the ploppies sitting at the rest of the table are picking up his "tab" .
Secondly, you're already assuming that the other 4 players are playing perfect BS. Not in this world! I run across maybe 2 in one week in RenoLand The rest play @-2%+ to the house and I'm being very Christian with that assessment.
 
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