Casino Money Management and Betting Funds

One of the most talked about - and misunderstood concepts in gambling is money management. Countless articles and books have been written about the subject, but because of its slippery nature, few people really understand its implications.

Even the definitions of money management vary from expert to supposed expert. Some express disdain about a concept that can’t be quantified by mathematical equations, and can only be described as an instinct. Others embrace it as the only real way to come out as a winner in the end.

Money management in gambling is not like money management in real life because, in real life, there is a source of guaranteed income through jobs or other payments. In a casino, the only guarantee is that the casino will win in the long run, so managing your money as you would in real life makes little sense.

WIINNING MORE, LOSING LESS
The essential goal behind money management is to bet more when you’re winning, and less when you’re losing. This is, of course, easier said than done, and virtually impossible to attain. If you knew when you were going to win or lose, it wouldn’t be called gambling.

The idea that managing your money can result in more winning sessions than losing sessions is difficult to swallow since all casino games have negative expectations for the player. That is, the casino has the “edge” at all times, and money management will do nothing to reduce or even ameliorate that advantage.

What money management will accomplish, however, is to extend your playing time, enabling you to remain in action when the inevitable winning streak finally arrives.

Most of the reasoning behind this belief is that you will set a bet progression that will take advantage of winning streaks and minimize losses.

Let’s look at a typical betting progression that could accomplish this goal. You should always think in term of “units”, which are the basic bets that allow you to track your play more easily. Playing the minimum bet at blackjack, you’d bet one unit, say £5. After a win, you’d bet £10, or two units. If you win the £10 bet, take back one unit, and bet £15. After a third win, you would take back two units, and make a £20 bet. In the unlikely circumstance that you’d win four in a row, you take back all the units, and start again, but this time with two units (£10). This way, you maximize your profits while minimizing your exposure to losses. If at any point you lose during this progression, return to the original one unit bet.

There are as many betting systems as there are players, but only by sticking to a predetermined system will you have the opportunity to walk away a winner.
One betting system that runs contrary to any money management system is trying to replenish your funds after losing by making progressively larger bets. This is called “chasing your money”, which is a guaranteed, can’t-miss short-cut to the infamous “gambler’s ruin” - an aphorism for going broke.

BETTING FUNDS
Another area of dispute among gambling experts is what comprises a comfortable fund and, of course, how best you can utilize it.

How big is big enough when you set out to play any game? To play any casino game effectively, a player must be comfortable with his betting level, and that’s where the concept of “scared money” comes from. If you don’t believe that you can compete effectively at a particular game with the money you have allocated, you should be playing another game or a lower minimum game. If you can’t afford to play the money you are gambling, you shouldn’t be playing. And if you believe you can recoup your loses by tapping the cash machine one more time, cut up your credit card. You definitely shouldn’t be playing.

At blackjack, many experts suggest that a £2.50 player should have at least £150, but £50 can be enough if you carefully limit your time at the table. At a £2.50 craps game, a player should have at least 100 times the minimum bet because of the side bets that must be taken in order to take advantage of all the betting options craps has to offer. Other games don’t have such stringent requirements and depend upon how you play the games, but players would be well advised to be able to absorb at least a loss of 20 units in roulette, baccarat and on slot machines.