All casino games are designed to provide the house with a built-in edge, diminishing the chances and sizes of potential payouts.
Math is the universal language, and it rarely ever lies. Each game gambler play at a casino has a statistical probability against player winning—every single time. While this house advantage varies for each game, it ultimately helps to ensure that over time, the casino won’t lose money to gamblers.
The house edge, which is the odds advantage in its favor, represents the average gross profit that the casino can reliably expect to make from each game. On the games with the lowest house edge, a casino might be generating a meager profit of anywhere from around 0.5% to a bit over 2%. On other games, it may make profits of anywhere from 15% to 40%.
The chart below approximately demonstrates a life cycle of a casino pool.
In essence, odds are the language through which gamblers, houses and even bookmakers in prediction markets communicate the potential outcomes and payouts of a wager.
While the specific way odds are expressed might vary between sports betting and casino games (e.g., fractional odds in horse racing vs. American odds in sports betting), the underlying concept remains the same: a numerical representation of the probability of an event.
We use Decimal Odds (aka "European odds") format in the scope of this paper.
The decimal odds number represents the amount the bettor could take home for every $1 wagered—the total payout rather than just the profit. In other words, your stake is already included in the decimal number (no need to add back your stake), which makes the calculation easier.
The odds on display never reflect the true probability or chance of an event occurring (or not occurring). There is always a profit margin (aka "house edge" or "house advantage") added by the house in these odds, which means that the payout to the successful punter (or bettor) is always less than what they should have received if the odds had reflected the true chances.
Probability of head or tail:
The house adds a spread of 1% for its advantage:
The odds will be:
Four key contributors to the business:
- Player
- Game Maker
- Liquidity Provider
- Frontend Operator
Players place wagers and earn rewards or rakeback.
Game makers develop game protocols and various frontend variations.
Liquidity providers cover casino payouts when reward pools are insufficient.
Frontend operators are customer-facing representatives responsible for marketing and legal compliance.
The profit margin will be used for incentivizing all four of the key contributors to the network.
A traditional casino typically owns its games, manages its capital, and oversees its operations.
Our approach is to decentralize all these three components.
Transparency. The Successor of Provably Fair.
Non-custody.
Permissionless.
Ownership.
Decentralization.
Ecosystem. DeFi, meme, communities.
Randomness is hard.
Randomness on-chain is super hard because of its deterministic nature.
Aptos is the first blockchain has native randomness on-chain.
Its randomness is the advancement of Distributed Randomness Beacons especially drand.
Aptos is fast and cheap.
Aptos is open for prediction markets.