Money Management is a term that is bantered about in the Gambling Industry, but is greatly misunderstood. The concept is very popular in trading, and has found its way into the arsenals of Sports Bettors.
I want to make a bold statement here: Money Management cannot help you! You say, “You must be kidding! I’m certain that the concept of Money Management is very important.” Really? Let me ask you these questions: Will Money Management make a winner out of a losing proposition? Will Money Management turn a negative expectation into a positive one? Will MM make a smart wager out of a sucker bet?
The answer to all of these questions is NO! If you’re placing a losing bet, no amount of MM will make you a winner! All casino games are designed to make you a loser in the long run… ALL of them. So, if you were to use the common MM strategies perfectly, you might be able to last a little longer, but you’ll still lose in the long run. Let me take this a step further… What if you were to enter the Gamblers’ Utopia; “The First Zero-Advantage Casino”? You’ve found a casino that has removed the house advantages from the games. Now, what would MM do for you? Nothing… you’d only break even in the long run!
So, what good is MM? You’ll be able to play longer! And assuming you don’t alter your optimum play, you’ll therefore get more comps! The best advice I can give you regarding MM is this: Open a bank account for your gambling bankroll. Put as much money into it as you can without putting ANY strain on your life. Continue putting money into the account on a monthly basis. After accumulating a good deal of money in the account (400 times your normal bet at a table game, and/or 10,000 times your slot machine bet). Example: if you are a $10 bettor at the tables, then you need to have at least $4,000 in your account. If you play 25ยข slots, and you insert 3 coins at a time, you need $7,500 in your gambling bankroll.
Hang on; the good stuff’s coming… Leave the money there, gaining interest… and get a line of credit at your casino equal to your betting session amount (one tenth of your bankroll). This way, you’re using the casino’s interest-free loan to gamble, and your money is still in the account gaining interest. Now it REALLY gets fun… Calculate the house advantage for your favorite game, and bet LESS than the amount you will earn in interest (PLUS your monthly deposits). So, if you are playing blackjack at a house advantage of .05%, you expect to lose one bet every two hours. A $10 bettor would expect to lose about $20 every 4 hours of play. Multiply that by the number of times you go to the casino in a month. Example: if you go twice a week, you’ll lose $40 per week or about $160 per month. Therefore, make sure that between the interest you accumulate PLUS the amount you deposit each month is MORE than $160. And, for a cushion, round it up to $200.
If you win, put the winnings PLUS your monthly deposit into the account. Continue this until you double your bankroll, and then double your bets. (And double your deposits too). During a winning session, quit while you’re ahead, or put half your winnings aside and continue play with ONLY the remaining half. Never bet money you need! Scared money NEVER wins! That’s not just a saying – it’s scientifically proven… when you need the money, or are afraid to lose it, you’ll alter your bets and your strategies to the point where you negate the advantages of any strategy.
