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Thoughts on the Use of Multiple Odds in Craps By Bill Zender (To be published in Casino Enterprise Management Magazine August 2007) Several months ago I received an e-mail from Gina R., a table games executive for a medium sized casino in the state of Washington. Gina's questions regarded several issues surrounding the use of multiple odds in Craps. One of her questions concerned the use of multiple odds in dice and what factors must be considered by her and her casino's executive committee before deciding what level of multiple odds they should use. The following is a portion of our e-mail conversation regarding my ideas and suggestions on multiple odds in the game of Craps. General Thoughts on Multiple Odds Strategy First, you have to consider why you are offering odds on the pass line/come (including don't) wagers. Second, you have to establish an odds strategy based on why you need to use multiple odds in the first place. Finally, you have to train your personnel to deal the odds correctly, and most important, consistently. Odds were originally used as a marketing tool to steal players from other casinos. When I broke in dealing (1976) double odds were just becoming the norm. Most casinos were transferring to double odds just to stay competitive in the Las Vegas area. Today, odds range from double (accepted industry wide as the minimum) to "100X" (the highest). One strategy is to stay even with the competition which isn't a bad position. If the casinos in your market region offer 5X odds then it isn't a bad idea to also do the same. If your main competitor offers specific odds, you may consider staying in parity with them even though other casinos in the area are either higher or lower. This strategy will keep your players from drifting over to your main competitor. If no one in your area offers more then double odds, you may choose to increase to 5X odds to attract new players. The idea is to attract these players to your casino so you can turn them into regular customers. Continued customer loyalty of these new players needs to be based on other factors about your casino such as friendly employees, better food, etc. Remember, once you jump up to 5X odds there is nothing stopping your competitors from doing the same. If you want to hold the new players you need to give them another reason for staying loyal to your casino operation other than multiple odds in dice. Many casinos use multiple odds in short promotions to attract players. Some casinos have successfully marketed high odds multiple in conjunction with monthly promotions. This allows the casino executive a degree of flexibility. By instituting multiple odds changes for a specific period of time the casino will not be subject to a wave of negativism when the odds revert back to the original multiples. It gives the casino executive the ability to "test the waters" and allows the executive to opt to extend the "odds promotion" if results are positive. Multiple odds range from double to 5X, 10X, and even 100X odds. If you switch to a high range such as 10X or 100X, you can limit your exposure by limiting the maximum dollars wagered on the odds. For example; if you offered 100X odds you may limit loss exposure by restricting the players to a maximum odds wager of $2,000. This strategy allows you to advertise "100X odds", but limits your 100X expose to line or come bet of $20 or less. Also, most players don't take advantage of high multiple odds. Usually their play isn't much different then 5X odds. In addition, be sure to incorporate high multiple odds with tables minimums of $5 or greater. If you authorize 100X odds on a $2 or $3 minimum game, you will experience higher multiple odds wagers on the average then if the table has a higher line/come limit minimum. In theory, using multiple odds does not cost the casino any additional expense since odds are "free". In the long run, it doesn't matter if you offer 2X odds or 100X odds. However, offering higher odds greatly increases game volatility (when the game loses, it loses big). If increasing odds will only attract a few new players, then raising odds is not worth the effort or exposure. Also, don't let other casino executives tell you greater odds lower the house's advantage on the pass line/come. It doesn't lower the 1.41% pass line advantage, however if the house advantage is calculated by combine the odds wager with the pass line wager, then the house advantage on the total wager will diminish as the multiples go up. This is a wrong theory when considering it from an operational standpoint, but this theory has some merit when considering the affect on the player rating system if marketing insists on including odds when calculating average bet. There's another factor to consider when considering higher multiple odds. If management elects to increase their dice odds, you need to advertise the fact to the gambling public. If the public doesn't know your casino is offering 10X odds then how can you expect new players to come to your casino? Word-of-mouth will not do the job. You will have to place ads in the paper, on the radio, and on roadside billboards before this strategy will work (use the media of your choice). Remember, you're trying to attract "new" customers so you need to reach out to them. Some casinos in the past have raised their odds and the only information released was through mail outs to their existing customers. This is a huge mistake which almost always end in failure. Final Points to Consider Important: If management elects to raise the odds in dice, you're doing so to either; (1) stay even with the competition; or (2) to attract "new" dice players. If your strategy is to attract new players then you need to advertise (spend money) outside your established market (don't spend money on mail outs). Make sure the new players have a reason for becoming loyal, regular customers through other factors such as superior customer service or food values. Don't count on higher odds alone to keep your new players from going back to the competition. That also means you need to train your employees to deal the new odds in a seamless and consistent manner. Be sure your odds strategy will provide you with some monetary return. If not, don't make any changes to your dice odds. It will be much wiser for you to spend your promotional dollars elsewhere. If you follow these suggestions then you will have a great chance of being successful in your venture. Sidebar - Decision Process for Determining Multiple Odds Strategy in Craps
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