Gambling Profits by Colin L. Wolfenden - HTML preview

Introduction

Gambling is to some extent looked on as a negative thing and is often seen for the most part as a habitual problem among ironically the poorest people of the community. Although many political leaders and other notable leaders in the media have posed the questioned “why would the poorest people spend money they can ill afford to loose on a habit with such a small chance of winning?” the answer is quite simple. When you are poor and have little or no chance of making a good life simply by your hard work alone then the only chance you have is that small chance offered by a lottery, jackpot on the slots, long shot at the races, or some other form of gambling with a high return for a small outlay. Every one of us has a dream to live a good life and have nice things and this becomes even more so for the poor with such a wide gap between the wealthy and the poor of our society making the mental and emotional frustration from knowing that you can never have those things even more of a driving force for the poor to find some way of getting those things. Even if that chance is extremely slim.

Gambling Vs Investing

What is the difference between gambling and investing? Most people would think this is a strange question and respond by saying that investing is increasing your money by placing it into well known investment vehicles (such as banks, stocks, houses etc), whereas gambling is putting money into things such as games of chance that have little chance of returning anything. Would you agree with this analogy? I don’t, because it’s a simplistic explanation which is somewhat untrue.

This guys crazy I here you say, (well maybe I am just a little :-) but let me ask you this. What is the difference between someone who buys $1000 worth of stocks in XYZ company because Joe down at the local pub said he heard their stocks were about to go through the roof and a guy who places a sports bet on a football team because “the word is” that they have some secret game plan that cant fail? Answer, absolutely NOTHING. Both of these scenarios are GAMBLING plain and simple. Even though the stock buyer put his money into the stock market which is generally accepted as an “investment” vehicle, what he did is still gambling. Many people invest money on the stock exchange using methods such as their own ideas or feelings about a particular stock or company and consider this investing; however in reality they are gambling.

Can Traditional Gambling Mediums Be Considered Investing?

Given our previous scenario proving that traditional investments can be as much a gamble as the lotteries, horse race betting, slot machines etc; can traditional gambling mediums be considered as an investment? To answer this question let us consider why we think of the stock market as an investment. One reason is that there are many people who do make returns from investing in the stock market and some people who even make very lucrative incomes from investing in the stock market. So part of the reason we think of the stock market as investing is because there is proof available to us via the media, and even perhaps friends or relatives have made some money in the stock exchange.

When we think of traditional gambling mediums however most of us usually know many people who simply loose money via these methods and rarely have any form of return. Let’s consider the other aspect though. Are there people who make a full time income from traditional gambling mediums? The answer is, absolutely YES. Are these people exceptionally lucky in some way to the point where they can make a good income from traditional gambling? No, absolutely not. You’d have to be the luckiest person in history to be able to make an income from gambling simply by luck alone. So how does a professional gambler make an income from gambling if it’s not by some magical talent or luck? He does it in the same way that a professional stock market investor does it. To understand how though, we first need to understand the real distinction between gambling and investing.

The Real Difference between Gambling and Investing

So what is the real difference between gambling and investing? Firstly, gambling is placing money on a game of chance or activity with random outcomes using selection methods with no sound reasoning behind them or historical data to draw a conclusion about the particular selection method. These methods can be using favorite numbers or colors, birthdays, favorite jockey, name of a horse, or the “someone told me” system. There are an almost endless variety of methods that gamblers use to make selections. Gamblers almost always have another couple of traits as well. Namely they expect an enormous return for a small outlay, and they rarely manage there gambling money or set aside a bank of funds to gamble with.

A professional investor on the other hand uses proven data and research to make selection choices, works his investing as a business, sets aside a working bank of money for investing, expects to make small to medium returns which he then compounds to build his working bank, and uses common sense risk management to limit the risks with any single investment. Basically, an investor educates himself in the area he wishes to invest and then makes educated decisions when placing investments. An investor also does other things that a gambler doesn’t such as have a set “bank” of money to invest with and manages that bank in a business like manner. He also does a risk assessment to limit his liability on each investment.

In a nutshell a successful investor in anything does these things:

1.  Educates himself about the investment medium.
2.  Invests in his education by obtaining trusted and relative information.
3.  Learns and applies prudent money management skills to limit risk and smooth out fluctuations in returns. (Every form of investing including stocks has fluctuating returns. A period of unusually high returns should not temp you to make risky choices any more than a period of low or negative returns should temp you to cease your strategy because of fear. Providing that you have a strategy based on proven results it is best to try to keep”*emotions” under control as fluctuations will invariably level over time providing the strategy is based on sound information and money management).

*Note – Another reason that some people fail to profit from quality strategies is that they retain a gambler’s mentality and allow emotion to unduly influence their decisions.

Example of an investing approach to gambling

Firstly, to give you a better idea of an investment type approach to gambling let’s say you have obtained a database of all the race results for a particular race track for the last three or four years. Let’s say two thousand races in all. You do some research with the results and find that in seventy-five percent of the races (that’s seventy-five races out of each one hundred) horse number one has run a place. Now that sounds like a profitable piece of information to have. Would you go out on the basis of this information and start placing place bets on number one in each race at that track? I hope not. While the information sounds promising there is still an important piece of the puzzle missing. The average return price for each placed horse. What if the average return price is only $1.28? Let’s take a look.

100 races = $100 out

75 returns at $1.28 = $96 returned

Total average return on each 100 races = a loss of $4 or 4%.

Not exactly what we are looking for. However what would happen if the average return was $1.50?

100 races = $100 out

75 returns at $1.50 = $112.5

Total average return on each 100 races = a profit of $12.50 OR 12.5%.

So our profit on turnover here is 12.5% which would be a great situation to have and certainly be an investment type situation if the results were proven over a significant number of races and we used proper money management skills to grow our starting bank and increase the amount invested inline with the growing bank and also use adequate risk management.

Know which form of gambling is for you

There are a myriad of different forms of gambling that you can choose from to throw your hard earned money into if you are the typical “hope for lady luck” style of gambler. Of these some are virtually impossible to make any money from because the odds favor the house (casino, club, bar, or venue) so much and there is no way of influencing or predicting the outcome. There are some forms of gambling however where anyone who studies and applies logical and proven strategies can bring relatively consistent returns similar to traditional investment. The games where you have little chance of making consistent returns include:

Slot Machines

The user has no control over any aspect of play with these machines except the size of their bets so you are at the mercy of lady luck. The house edge is usually considerable so this form of gambling should only be used for a little fun with spare change.

Bingo

Another popular game particularly with retired people, this game is again a pure luck game. You purchase a game card and wait for numbers to be called and if you’re lucky you may win a prize but most people just do it for fun and rarely win anything.

Keno

Keno has become very popular in clubs, bars, and online casinos in recent years. The large payouts encourage gamblers with the dream of winning big but the miniscule odds are reflected in the payouts available.

Lotteries

Much the same as the keno story here although the game has a high participation rate because we all like to have a little go at the million dollars. We’d all love to win millions but sadly the odds are so small you wouldn’t bet your house on it or you will certainly end up living in a tent.

Games where it is possible to make a profit

Horse Racing

Horse racing is one form of gambling that the vast majority of people loose their money on, however it is possible to make a good income from racing given the proper skills and investment capital to work with. One problem here is that there are so many sources, ratings services and promoters of software that are complete rip-offs that it’s often hard to know what is genuine and what is not. I myself was the victim of one of the software rip- offs many years ago at which point I decided to educate myself about racing and gambling in general. Ironically what I did learn about staking in particular if applied to the selections from that software would have turned a big loss into a small profit. This proves how important money management strategies are in the grand scheme of a profitable investment approach as apposed to a gambling one.

Many approaches to profitable horse racing use ratings services etc, but there are less risky and more consistent ways of profiting by looking at horse racing in the same way as profiting from any sports betting. The member site (see last page for access) has details of the best method of sports betting for guaranteed profits by looking at opportunities in the market in the same way as a skilled stock market investor looks for opportunities in that market.

Roulette?

Roulettes were invented by Blasé Pascal, a French mathematician, in 1842. It is a simple gambling game where you have to bet on which number a small ball will hit. I have placed roulette in this section with a question mark because at the time of writing I am about to research several strategies that have become available to me. Until I research these methods I remain skeptical of being able to return consistent profits from this game however if one of the strategies proves effective I will place details on the book member site possibly as a free bonus for subscribers to the mailing list.

Poker

Poker is the most popular casino game and has become even more so in the form of Texas Holdem poker tournaments on television. Poker is believed to have originated from the game ‘as nas’, which is a Persian game. It uses a deck of cards for a series of betting rounds. The player with the best hand wins the pot. Poker is also regarded as a game of strategy and skill. By studying and applying quality strategies and skills a player can make good profits from this game. You can find more information about how to learn these skills on the member site for this book. Access details are on the last page.

Sports betting

Sports’ betting has boomed in the gambling industry in recent years mainly because the internet has given more widespread and convenient access to betting on any sport you care to mention. Common sports bets are: against the spread, against odds, against a combination of spread and odds, and head-to-head bets just to name a few. Sports’ betting is the other area where you can make good money risk free by taking advantages of opportunities in the market. You’ll find more information on these opportunities when you visit the book member site.

Online Gambling

To Gamble Online or Not to Gamble Online - That is the Question

Compared to a real casino experience, here are some of the considerable pros and cons of online gambling:

Pros of Online Gambling

1. Hot Offers

As a competitive business, online gambling can give so much to persuade gamblers. They could offer bonuses for new customers to sign up, i.e., additional 10-50% of their initial deposit to their bankroll, random deposit of money in customer accounts, and giving away vacations for particular levels of total money bet.

2. Better Rules

According to experienced online gamblers, online gambling has better rules compared to physical casinos.

3. Cozy Gambling

Of course, the online world makes online gambling another convenient way to have fun in the comfort of home.

4. Less Annoyances.

Troubles with drunken people, smokers and thieves. With online gambling these real casino troubles are avoided.

5. No Tipping Obligation.

Unlike playing in a real casino, you don't have to be obligated to tip the waiters and dealers.

Cons of Online Gambling

1. Patience is a Virtue

Cashing out can be a bit tedious with online gambling compared to real casino gambling. One may be prompted to wait for about 2-4 weeks for cashing out. With this in mind, the use of debit card is advised since with it, it is a lot faster to make your credit appear.

2. Customer Service Boo-Boos

Depending on where you play, you don't have that face to face confrontation power with the online gambling site. Some sites may offer toll-free calls and e-mail correspondence. But these are prone to delays compared to just talking to the casino manager or something to that effect.

3. Online gambling casinos call the shots.

With online gambling, the player may have to deal with the casino's word as the final word when any dispute surfaces.

4. Credit/Debit Card Overuse

Your ability to balance your credit or debit card statement might fail with online gambling because of the temptation to play at a lot of places.

5. Inaccurate transaction documentations.

Transactions don't usually have the name of the casino you played at but instead only the merchant bank is identified.

With this information, weigh the differences as to whether you prefer to do online gambling or not.  As long as you don't get too hooked up on it and you're enjoying yourself, go ahead get a feel of the online world of gambling.

Online Gambling Guide to a Better Game

When gambling online, select the casino site carefully to avoid being scammed. Review the site wisely. Don't just give your credit card number to the first site you find on the net. Take the time to ask yourself these questions:

• Is the site authentic? Look if it is government licensed. If not, go locate another site.
• Does the site have a twenty four hour toll free customer service support? If not, look for other sites.
• For slot machines and pokers, what is their smallest denomination? Look for a variety in denominations. They should have nickels, quarters, dollar as well as five dollar machines.
• How many versions of video poker do they offer? They should have at least three, because this will be your basis that the site has money for the software, therefore it can afford to pay you your winnings.
• Does the casino site have a place to record and keep track of purchases and cash out?
• What about customer care? Test them. By sending them an email with a question, you can assess their customer service.
• Does this site have a good reputation? What software does it use? Know how to collect your winnings. They should have detailed information about this.
• How many days will it take for you to claim your winnings? Certain sites require you to send them email stating your request. Others give payouts only once a month, and others every two weeks.
• What are the rules about bonuses?

When gambling online, here are a few pointers that should be of help:

1.  Do your homework. Play only at authentic sites.
2.   Allot a budget for a day's game. Never go beyond that budget.
3.  Gamble only with money that you can afford to lose. Don't gamble the money allocated for your home rental. You'll be needing help if you play this way.
4.  Never mix alcohol and gambling. They simply don't work together.
5.  Your data is to be protected at all times. When signing up, note that the casino should have a secure and data encrypted link. Identity theft is rampant on the internet.
6.   Spend ample time reading to familiarize yourself with the game.
7.  Play by statistics. Know the odds of the game. Study it by numbers. Hunches have no part in gambling.
8.   Just stick to the game. Never mind the gimmicks. Side bets, insurance and the "crapless craps" are offered in order to lure you to spend more so that the casino will make more money.
9.  Know when to call it quits. If you are already