Building a Profitable Casino with 0% House Edge
You would be really surprised if I would tell you that a casino, offering 0% house can actually be profitable. But bare with me here and find everything out yourself.
The biggest problem that online casinos are facing these days is attracting new players to their website. Everything else is just a minor details, as if you have good traffic, you make more money and then you can pretty much afford the best web developer, designer, lawyer, etc. And to make things even more complicated — casinos have a big stigma around them. This leads to the restricted access to marketing tools such as facebook and google ads, instagram, TV, majority of media portals and so on. A lot of countries even banned any type of marketing materials related to gambling industry as well.
In other words, it is extremely hard to bring traffic into the online casino as the marketing options are really limited. But on the other hand, online casino is one of the top profitable businesses.
Edgeless — the first online Ethereum based casino found a way how to attract new clients without spending millions on marketing — 0% house edge. At this point, there is no blockchain based online casino that is offering the same thing. And for anyone who is at least a little bit familiar with a gambling world, knows that this means the game is more fair for everyone. Usually casinos have 1–2 % house edge, so over the time, netherless of your play casino will take this percentage for themselves.
This will be a perfect strategy to attract new users and use word of mouth marketing to bring even more traffic from the gambling community.
Having this advantage, it will be way easier to use search engines, gambling forums, ad display networks, affiliates, blog posts, social media communities to spread the word about our online casino.
And it’s a fact that a casino with 0% house edge — can easily creates a lot of curiosity and buzz among people. Probably that’s one of the reasons why you are reading about us.
At this point you might be wondering, how Edgeless will be making money if the house edge will be zero, so let us do the math and show you:
Just from the games Edgeless will make 0,83%, as the games we will be offering will be LUCK + SKILL games. If we would offer a roulette with a 0% house edge — in the long run casino would have ZERO profits.But we will offer Blackjack which is a game of LUCK + SKILL, so that our casino will earn profits. Players do not play a perfect game, so they make mistakes and their mistakes increase casino edge which is equivalent of 0.83% edge.
The first two games Edgeless will have, will be Blackjack and Video Poker. Both games are played with a combination of LUCK and SKILL. That means players make choices and either play well or poorly. To give an example of such a situation:
Blackjack:
House has a 6 card.
The player has 16.
The player wants to collect at least 17 and hits for one more card. — BAD MISTAKE.
The player just made a huge error, because, 12+ against 6 ALWAYS STAYS. (according to Blackjack basic strategy).
An average player does not play ‘the perfect game’ therefore, in the long run the casino makes a profit from his mistakes.
An analogy can be taken from poker. A new player is playing against a Pro. Both have equal probability conditions — 50% vs. 50%. However, the Pro player makes better choices and the new player makes bad decisions, and in the long run, the Pro wins.
Look at this EXTENSIVE RESEARCH from players’ mistakes in Blackjack — on average they give away an 0.83% edge to the casino:
https://wizardofodds.com/image/ask-the-wizard/how-poor-are-bj-players.pdf
And that’s exactly what the casino will earn — 0.83% which is the same as playing dice with an 0.83% house edge.
The concept has not literally come out of the blue — discussions on zero edge casinos are already occurring in the community:
https://www.bitedge.co/blog/0-house-edge-provably-fair-and-trustless-gambling/
So as you can see, Edgeless will be making 0.83% profit from card games, but this is not the end. We will also have sports-betting which is on the rise. Sports betting is connecting people who are betting against each other and taking rake from each side. ROI from money wagered in our settings going to be 4%.
People will come here to play card games with 0% (0.83% in practise) house edge and some part of players will join sports betting area too where casino will profit 4%.
0% house edge games will attract a lot of players from all over the world. We will not need to invest millions in marketing. And large part of players will bet on sports-betting as well, where casino will have bigger profits.
Now you can chose:
A: Casino with 20k players and 1% house edge.
B: Casino with 1 million players and 0% edge. Which in practise is 0.83% and 4% earned from sports-betting.
So the choice is clear, find out more about Edgeless casino in our website and check our upcoming ICO Crowdsale on 28th of February 2017, 3:00 pm GMT.
Continue reading “Ethereum Blockchain casinos are extremely slow — solution?”
QUICK LINKS:
Website: www.edgeless.io
White paper: http://bit.ly/2jHIb7T
Slack: edgelessethcasino.signup.team
Reddit: reddit.com/r/edgeless
Twitter: twitter.com/edgelessproject
Facebook: www.facebook.com/EdgelessCasino
