Three Small Misperceptions with Big Impacts - Part 3

Misconception # 3: "Big players are smarter than small players." In the casino players' hierarchy a special place of awe and envy is reserved for players who bet big. I've seen players betting the equivalent of what many people make in a single year -- betting all this on a single hand of baccarat! Kerry Packer, the Australian billionaire, is said to wager anywhere from 100 thousand dollars to one million per decision at baccarat. At blackjack, he'll play all six or seven spots for 50 to 100 thousand dollars each. Yikes! Does this mean that he is an astute gambler? No. It just means he bets BIG.

Since I have never seen Packer play personally, I will tell you about a guy I did see a few summers ago. He easily wagered over 50 thousand dollars per roll at craps. But he made all the worst possible bets. In a single evening, he won close to a million dollars when luck was with him. But after several days, when he left the casino, he was down multiple millions of dollars. He was one of the dumbest players I ever saw -- despite his obvious wealth. Smart in business? Perhaps. Dumb in gambling? Definitely.

There is absolutely no correlation between how much you bet and how intelligent a gambler you are. People bet the kind of money that gives them a thrill. The $5 player is getting just as much of a bang risking his money as the $500 player. But who plays the smarter game, who is the savvy player, is not a product of money, but of brains. I have yet to see a price tag placed on that! Intelligent play is priceless at any level of betting.