I came to know about a gambling game with following conditions:
a> Betting option for 3/4 winning chance.
1> You will have to bet 1 of 4 numbers.
2> If the out come of game doesn't match with your bet, You WON 100 coins.
3> If the out come of game matched with your bet, You LOSS 300 coins.
b> Betting option for 1/4 winning chance.
1> you will have to bet 1 of 4 numbers.
2> If your bet matched out come of game, you got 3 times. i.e., if you bet 100 coins, you get 300 coins if you won.
3> In case it you loss, you pay to dealer 100 coins.
c> Betting option for 2/4 winning chance.
1> For same game, You will have to bet any two 2 out of 4 numbers.
2> If you won you get double.
In case a , your probability of winning is 3/4 and loss 1/4. Ratio of of money you get when win to money you pay when loss is 1:3.
Here is my questions:
1> I think in big picture, the player have more chance to win because odd of player winning is higher. How do dealer make money at all?
2> If player triple his stake when player loss the bet, next time player win the bet, he should got his money back. The probability of loosing 3 game consecutively is very low (0.25*0.25*0.25 = 0.015). So there is more chance for dealer to went bankrupt. Again How do dealer make money at all?
3> Do you think there is another way to win this game or increase probability of winning the game?
P.S. : This question is truly for academic purpose. I am not trying promoting gambling here.
Thanks in advance