Money Management at Slots

There are some gambling authors who believe that money management at games of chance is a waste of time. Since you can't beat the games in the long run, what is the point of focusing on how much you've won, how much you've lost, because, in fact, the longer you play the better the chance that you'll be down. You are wasting your time as well as your money.

While the math of gambling is clear, you will lose in all games where the house has the edge if you play long enough, the math of money management is hazy. Can money management at slots, for example, lessen the impact of the house edge? Some authors say it can't. I say it can. Watch.

Player One loves the slots. He brings $1,000 to play his favorite machines. When he loses that $1,000, he takes out his wallet, grabs his credit card, and makes an ATM withdrawal.

Player Two loves the slots as well. He brings $1,000 to play his favorite machine. When he loses that $1,000, he goes home.

Which player has reduced the effects of the house edge? Why player two has because he is betting less money! Even though the math of the house edge is the same for both players, the fact that one is a wild gambler feeding off the ATM machines and the other has economic control changes the nature of what they are doing. In one case, a player's money management is used as a shield to keep losses contained. In the other case, the player has no skill at keeping his losses under control.

Player One will face serious economic problems if he keeps up his style of play while player two will probably be able to play the slots for the rest of his life.

How you manage your money, even at house-friendly games, will determine what kind of hit the house edge is going to have against you. Therefore, certain money-management principles should always be in play when you tackle your favorite slot machine. These are:

1. Play the machines with the lowest house edges. These machines are usually "stand-alone" machines without progressive jackpots. The lower the house edge, the less you will lose.
2. Play one coin in all machines.
3. Play slowly - no more than six spins per minute.
4. Never use ATM cards. You pay immediate interest and fees on the money you withdraw. So not only does the casino have an edge on you, but the bank does too!
5. Set aside a certain amount of money for a playing session. If you lose that money, you are finished for the day.
6. Never think that if you continue playing you are bound to win. The casino has the edge on every spin of the machine. You are always more likely to lose the next session than win it.
7. Don't worry about comps. The casino will give you what you deserve. Comps are just extras and should not interfere with how you play.
8. Recognize that you are playing against a house edge and that the longer you play, the better the chance is that you'll be behind. If you are lucky enough to get a win, consider taking some of that win home.
9. Establish credit at your favorite casinos. By having credit you will not have to walk around with a lot of cash on you. While casinos are safe, no place of business is perfectly safe.
10. Always pay off your markers right away. Never take out more in credit than you planned to.

By following these ten rules of money management, you won't play with an edge against the house, but you will play a contained game.

Another important aspect to casino gambling is to determine which money is for gambling and which money is for real. Too many slot players use money from their normal bank accounts to play the machines. This is not a good idea. All casino players should have a separate gambling bank account (a 401G - with "G" standing for gambling) and the money in that account is only to be used for playing purposes. You should add a little money every two weeks to this account so that your inevitable losses will not diminish it.

When you gamble with real money, you always run the risk of second guessing what you just did. "Oh, gee, I could have used that money for little Samantha's heart operation." With a 401G, Samantha's money is not confused with gambling money.

Money management can't make you a winner, but it certainly can make you less of a loser and that is, after all, a good thing if you love to play the slot machines.