There is a cost to do everything, whether it is gambling or doing business. What is the cost of gambling? Everyone will of course believe that the profit and loss in the casino is nothing more than to gain money to cover your gambling assets. Or, lose money can be covered by your gambling money. In fact, every time you win 10,000, the casino actually secretly drawn at least 90 percent of it, which is the opportunity cost.
To see an example of a netizen, how to use economics to solve the mystery of “gambling”:
I studied in the United States for many years and I studied financial mathematics. I am not a gambler. However, someone in the family (my father) lost money to hide debts during the Chinese New Year. The whole family knows his gamble. He was gambling in Macau. He would have taken all the cash from the revolving capital chain back and forth, resulting in the end.
As a bystander, I want to tell everyone from a probabilistic point of view that what you have called winning money is actually a small amount of money.
How much do you know about the cost of gambling?
Everyone knows the concept of cost. There are costs to do everything, be it gambling or doing business. What is the cost of gambling? I think everybody will say: gambling money, cost of money. It is because of this that all people will of course believe that the profit and loss in the casino is nothing more than to gain money to cover your gambling assets. Or, lose money can be covered by your gambling money.
This idea is wrong!
Now I’ll tell you one that will make you feel surprised, but the scientific theory, in fact, every time you win 10,000, the casino actually secretly drawn at least 90 percent!
Because everyone ignores an important cost concept: opportunity costs.
You must have thought that I was talking nonsense. The money I had won was actually in my pocket. How could it be secretly drawn into a casino? Because everyone only cares about the bet book in your hand, and ignores the importance of Western economics, it is also an implicit form of life and death: the opportunity cost.
What is the opportunity cost?
I explain, with a practical example:
Every time you enter a casino, or a net gambling, or a computer room, seat, bet, and score. For example, if your bet is 1,000, you have to pay one for three, 3,000, and the probability is one half (of course. Just assume), and then the choice you face is that with a 50% probability, you end up with 4,000, a 50% probability, and you’re not going anywhere. However, on the day you had a good luck, one was in the middle and 3000 was accounted for. You have been forgotten at this time, thinking that you won 1000 for 1000, and the cost is still there.
In fact, from an economic point of view, at the moment of your betting, your economic system immediately produced two costs: 1,000, your gambling book, and 50 percent may lose this hidden cost, 3,000 times. Fifty percent, in fact, your total cost is: 1000 + 1500 = 2500, you finally won, get 4000, in fact, you finally make money: 4000-2500 = 1500.
The money that bears the risk is your opportunity cost.
Speaking of this, you may think I’m alarmist: but, 4000 money actually I have got, how can I only earn 1500? The answer is: The loser in the casino helps you. And every time you lose money, it’s just helping others take the opportunity cost.
Now we calculate that, under a gamble, you are under 100,000, and there is a 10% chance to hit 1.5 million. This probability is still tempting, but considering the opportunity cost, 150* 90 percent chance of losing money, you only You win 150,000, minus 100,000 bets. In fact, you won only 50,000 in the end.
Now, let us collectively recall that when we win the most, we have a few: One? Five? Ten? Fifty? Then according to your experience or the casino’s inherent probability (for example, the probability of 21 points is about 49-51).
Looking back, how much money did you make that time? If you think you’ll find out, maybe you think that when you made a fortune, it was only tens of thousands or even less.
The casino is relying on this hidden cost to make money. Because of the ten winners, the anti-gambling rate is at least 95%, unless you are passing by and sending money to school.
Is everyone possible?
Gambling is a pathological feature. Like narcotics, it has its clinical basis in the late 1990s. This is why everyone will pass through the casino room or open a net gambling website. The heart and even the physiology will produce extremely unbearable and uncomfortable reactions.
Because you are sick.
I suggest that people who have serious gambling addiction should not be forgotten, useless and uncomfortable, and should go for psychological counseling. Of course, before everything, you must pay off your debts first, and you have to quit gambling, be frank, pay off your debts, cure your illness, use less internet, and work more.
Since gambling is a scourge, why are many countries not explicitly forbidden and even support the gaming industry?
Why do more and more countries and regions in the world open up gambling? There is only one reason to get financial income.
In Western Europe, only Switzerland, Spain and Scandinavian countries prohibit the establishment of casinos, the United Kingdom has 120 casinos, and other countries have 180 casinos. There are many countries that only allow tourists to participate in gambling, not allowing local residents to participate, such as South Korea’s Huake Villa, an hour’s drive from the center of Seoul City, it refused to South Korean citizens into the country.
For tourists, nightlife is really a problem. Like in Australia, even in the big city of Melbourne, there is no place to be fun after nine in the evening. At this time, Australia’s largest casino Crown Casino is very attractive. 130 games points and 1200 playing cards are very popular. Moreover, the Crown Casino is conveniently located in the city’s World Trade Center.
A Cambodian casino company named Nayong has recently been preparing to list in Singapore and plans to raise 50 million U.S. dollars. In the 2000-2003 years, Labuan casinos had an average net interest rate of 48%.
Of course, it is still the United States that really makes gambling the industry and flourishing. In 1999, the total income of the US gambling industry exceeded US$58 billion, of which the lottery (US$16 billion) and casinos (US$13 billion) are the most important components. In comparison, ticket sales to the United States in 1999 were only US$7.5 billion, and the music band’s revenue was flat with casinos.
The nation’s premier gambling center is naturally Nevada. The biggest feature of Las Vegas here is that nearly half of all gaming hotels’ revenue comes from non-gaming projects such as rooms, food and entertainment, and the six largest ones. Gambling companies account for 80% of the state’s total revenue. This is amazing data.
Just want to admonish that in many countries, casinos are gambling tourists are foreign, silly and naive, will go to gambling. In addition, even if Japan builds a casino to promote the economy, you say who has earned the money.
How does a casino earn your money?
There are at least three real gaming mysteries:
First, the loser’s money is used to make up for the winner, but not so much in the mathematical sense. In other words, the profits of the gaming industry come not only from losers but also from winners. In the case of horse racing gambling, various taxes, horse rides, and “breakage” fees are deducted from the money contributed by winners and losers.
Second, the casino’s rate of return is proportional to the frequency of gambling, and the number of times and time that the gambler plays is as long as possible. Las Vegas has the ability to let people who go there stay an average of 3.8 days. In the same casino, the average length of stay for Atlantic City tourists is less than one day. Many people just stay for hours.
The third way of making profits deserves our attention. In a 50:50 gambling, the result of winning or losing is often half-half in the long run. However, because the gambler’s money is limited, he is certainly losing money in probability.
The problem is that most of us go to casinos to play, and to enjoy the happiness of the process, it is impossible to put 100 dollars on the gaming table once and lose. The casino owners are also using this point, even if there is no case of a dealer’s yield, they can win without losing.
Can you beat the casino?
Just as investors want to overcome the stock market, the highest ideal for professional gamblers is to beat the casino.
Mr. Wu Jinglian mentioned that “China’s stock market is even worse than casinos.” This will be discussed on two levels.
First, is the stock market a casino? Judging from the current research of economists, the stock market and casinos have great similarities, which may also include foreign exchange and futures markets. At least, if our investors do not maintain a clear-headed and rational analytical spirit, their behavior Basically it’s no different than a gambler. Therefore, investment in the stock market also need to be cautious!
Second, what is the casino? Since in the game of playing cards such as weekdays, many people regard the deceitful “cheating” as part of play, it is very difficult to establish a completely fair game rule. Even the contemporary American-style casino or the stock market has experienced many twists and turns to achieve a just state of fairness. Therefore, it is not only the continuous “dirty” in the Shanghai and Shanghai stock markets that many Hong Kong stocks are suspected to have been or have been manipulated.
The most important feature of gambling is the use of small gambling. It matches the greed born with humans. It is precisely this point that allows our investors to look at the stock market and other investment markets as casinos, allowing them to commit crimes, deceive investors, and make the stock market even less expensive than casinos.
Finally, according to media reports, a South Korean casino is suspected of luring Chinese gamblers to go to Jeju Island for overseas illegal gambling, and even hesitates to use Korean celebrities to lure gamblers. It can only be explained that the casino economy can drive the development of an area. In addition, if you are a person with no self-control, you can easily be tempted. In the end, you will lose badly in the casino.
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