Hedging & other advanced technics to max coin-in

I got a message from an AP looking for a play at an unnamed casino. AP was looking to drop $X0,000 coin-in (in one day!!) for a promotion.

Plan B if he didn’t win enough on the promo was to trigger sufficient amount of Free Slot Play (FSP) via mailers.

The problem was no game (when playing straight up) could get the $X0,000 coin-in at the loss rate that he wanted.

So I suggested an alternative that allows him to get the necessary coin-in at an acceptable lose rate using an advance technic.

Suppose you were a coin-in slut or free play whore that was getting thousands in FSP. Your approach would most likely be brute force. There’s nothing wrong with brute force especially when it comes down to multi-line Video Poker or $100/hand video BJ. A deep pocket AP doesn’t care about the variance because it’s one long run. Risk adverse or CE-based AP focuses on the win rate per hour AND the variance due to mean-variance approach.

These CE-based AP’s uses a lot of hedging wagers, etc to get the coin-in but at much reduced variance. For example, if they use skill to reduce the house edge to 25 bp or less, they will put huge volumes of wagers / coin-in on a hedged basis. For starters, the casino is not expecting the house edge could be reduced.

This is why on games where a Yahoo (now called Degens) can hedge their wagers, the casinos require lots of coin-in per point, the casinos don’t allow FSP on these machines, etc.

The key point is variance of a portfolio isn’t the weighted average variance, there is an interactive effect that needs to be considered. Also, the weights are squared.

https://www.investopedia.com/terms/p...o-variance.asp

Solution is sent via PMs. These technics are what coin-in sluts & free play whore desperately need but no one is telling them. I am not telling them even though the opportunities are hiding in plain sight.