I'm sure this is a silly and banal question next to all the crazy string theory and lambda calculus questions on this site. Perhaps it's a nice, easy, refreshing break. Anyway, on to the casino...
SatoshiDice is a betting website. You expose your money to risk and gamble for a reward.
I know the house maintains an edge, but I'm just having trouble reasoning through it. Would someone mind explaining it to me with a simple example?
For example, say I wager 1 bitcoin on the "lessthan 48000" bracket. I have a 73% chance of winning, but the payout is only "1.323x", and the house takes a 3% rake. So, 73 out of 100 times playing I'll win slightly over 1%, and 27/100 times I'll lose everything, so... well, here's where my brain pretty much shuts down. Maybe it's just time to get some sleep. :)
I asked this question here instead of http://bitcoin.stackexchange.com because it seems more about math than bitcoin.