Bankroll Basics
Bankroll is one of the most important concepts in all forms of banking. However, most people involved with the casinos overlook the details associated with the bankroll management.
Bankroll: The entire amount of money available for gambling. Cash on hand is referred to as trip or session bankroll, while cash that is left at home or in the bank is reserve bankroll.
Risk of Ruin: The probability of losing a bankroll. Risk of ruin can be figured for a session, for a trip, or for an indefinite period of time. Obviously a low risk of ruin is very desirable.
Mini-Bank: A portion of the total bankroll devoted to play at a certain level of stakes.
When this amount is lost, play ceases at that level and play begins on another mini-bank at a lower level. When enough is won to create a mini-bank at a higher level of stakes, the betting levels can be increased.
Cumulative Risk of Ruin: The probability of losing a bankroll consisting of two or more mini-banks. Cumulative ROR is equal to the product of the RORs for each of the mini-banks in the bankroll. For two full mini-banks with a risk of ruin of 10%, as given in the system reports, the cumulative risk of ruin for the entire bankroll is 10% × 10% = 1%.
Return on Investment: The expected win divided by the bankroll required for a desired risk of ruin. Risk is just as important as expected return to all but the wealthiest players.
Tags: Bankroll
January 5th, 2011 at 2:53 am
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