Full and Actual VP Return

6 May 2023

By Jerry Stickman

From Norman:

Hi Stickman,

I have another question for you. You mentioned in one of your previous articles that a game such as 8/5 BP at 99.17% can potentially be made into a positive game by putting comps, free play, slot club, etc. into the calculation. Is there an actual mathematical formula for this?
I am looking forward to your response.
Norman

Hi Norman,

It is certainly permissible to consider other perks and comps when calculating overall return. However, most video poker players simply use the mathematical rate of return from the machines they play. They do not take the time and effort to gather the data needed to calculate their actual rate of return.

Read on to see how to calculate the actual rate of return, which can include just casino play or also other perks and comps.

When considering whether or not to offer a free or discounted room, free or discounted meals in the buffet, dining room or gourmet restaurant, the total level of play is considered. The game, betting level and hours played are all taken into account.

Players who play for short periods and bet at low levels seldom snag free rooms or a meal at the gourmet restaurant. Those are reserved for much more lucrative players.

Before even thinking about calculating the actual return including casino perks and comps, the player should head to the casino often enough and play long enough to warrant regular “free stuff.”

The question “would I have come to the casino even if I did not get the perks” should also be answered in the affirmative before considering adding the casino perks and comps to the calculation.

From there it is straightforward but certain information must be captured and that can be tricky.

Since return is a percentage of the total amount played, to properly calculate the actual rate of return the player must note the total bankroll at the start of play, the total amount bet and the total bankroll after play is complete.

• Total bankroll at the start of play: this can be total bankroll brought to the casino, the session bankroll, or the amount fed into each machine.

• Total amount bet: this is not the amount fed into and cashed out of the games, but the actual total bet. For example, playing a 25-cent game with a max bet of five coins, the amount bet per hand is $1.25. The $1.25 per hand must then be multiplied by the total number of hands played. This number can closely be approximated by noting the player’s club point total at the start of play and again at the end of play. The number of points per hand (or dollar) must then be either known by information available from the player’s club or calculated by playing 10 or 20 hands and seeing how many points have been added to the total. Use this information to calculate the dollars per point and use that amount to calculate the total amount bet by multiplying the points earned by the dollars per point.

• Total bankroll at the end of play: This should be the same measure that was used for the starting bankroll: the total bankroll, the session bankroll, or the amount cashed out of the game.

The actual return percent is then calculated by subtracting the starting bankroll from the ending bankroll. Then divide that number by the total amount bet times 100.

Example: Starting bankroll $100, ending bankroll $90, total amount bet 800 hands times 1.25 per hand = $1,000.
$90 - $100 = -$10 / $1,000 = 0.01 x 100 = 1 percent.

This is the actual win or loss for that session – not the machine’s mathematical long-term win or loss. To calculate actual return, subtract the win/loss from 100 – a 1 percent loss is a 99 percent return (100-1).

By now you may be thinking that this is more work than it is worth. It very well could be. That is up to you. The process can be streamlined by programming a spreadsheet to make the calculations when you enter the starting and ending bankrolls as well as the total amount bet.

Now, to calculate the total return including perks and comps you must first get the total beginning bankroll for the trip, the total amount bet for the trip, and the total ending bankroll. Add up what you consider the reasonable value of the room, meals, and any other perks such as winnings from free drawings or tournament. Add this number to the total ending bankroll and run the return calculation.

Feel free to include or ignore any of the amounts you see fit.

So, is there a formula to determine the actual return rate? Yes.

It is easy to calculate? Not really.

Is it something you want to do? That is up to you.

As always, may all your wins be swift and large, and your losses be slow and small.

Jerry “Stickman”

Jerry “Stickman” is an expert in craps, blackjack and video poker and advantage slot machine play. He is a regular contributor to top gaming magazines. He authored the video poker section of “Everything Casino Poker: Get the Edge at Video Poker, Texas Hold'em, Omaha Hi-Lo, and Pai Gow Poker!” You can contact Jerry “Stickman” at stickmanjerryg@gmail.com