philderby1
Senior Member
- Joined
- Oct 8, 2012
- Location
- derby
I have a question, if a casino is offering 10% cashback to a player, if the rtp is lets say 94% rtp then does this mean the average payout is 104% and positive EV?
I have a question, if a casino is offering 10% cashback to a player, if the rtp is lets say 94% rtp then does this mean the average payout is 104% and positive EV?
No not at all. It means if you deposit 100, get the TRTP over your session of 94%, you will bust out after a few hours. You have lost 100 pounds. You get 10% cashback on your losses (this is how cashback usually works) up to a certain amount. You get £10. You have therefore turned 100 in to 10. An effective RTP (on the terms you're getting at) of 10%.
If you played and cashed out 50, you'd have lost 50 and therefore would get £5 cashback, giving you an RTP in your terms of 55%.
The only way you can get the cashback is to lose, therefore you cannot ever incorporate it into a positive 100%+ RTP.
I have a question, if a casino is offering 10% cashback to a player, if the rtp is lets say 94% rtp then does this mean the average payout is 104% and positive EV?
Depends on how you play and if the cash back has any wagering requirement attached.
(for simplicity, lets use Roulette and say you get 10% cash back on any losses.)
Say you deposit €100 and play one spin on Black on Roulette
23/37 times you will win and walk away with +€100
24/37 times you will lose and get 10% back, i.e. losing a total of €90
So, your EV is then:
23/37*100+24/37*-90=23/37*100+24/37*-90 = €3.78 for €100 bet, i.e. 103.78% EV.
(Obviously this sort of behaviour will most likely get you banned from receiving the cashback)
Don't you mean 18/37 and 19/37?23/37 times you will win and walk away with +€100
24/37 times you will lose and get 10% back, i.e. losing a total of €90