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True odds vs Payout rate

True odds vs Payout rate
True odds are based on real life probability of something happening. For example, when a coin is flipped the odds are 50/50 that it will land on heads or tails. This is because there are only 2 possible outcomes. True odds are based on the mathematical probabilities of an outcome. While casino odds are based on true odds, they are slightly skewed in favour of the house.

For example, John and Jane are flipping a coin placing a 50c bet. John picks heads and Jane picks tails. Each time the coin lands on heads John gets $1, each time it lands on tails, Jane gets a $1. But house edge is when each time tails is shown, Jane gets 90c and for heads, John gets a $1.
House odds explained
The house bases their odds off the true odds but add sometimes a microscopic percentage in their favour. They do this when they decide how much they will pay to you.

Another example: a di has 6 sides, the chance of rolling any particular number is 16,66’% or 1 to 5. Only one number will result in a win, while the other 5 numbers will all be losses. However, a casino may offer to pay odds of 1 to 4, pushing the edge in the house’s favour.

So, on average and over the long run, one of 6 rolls should result in a win. Using the example above and the bet size of a dollar, if the first 5 rolls are lost, the 6th roll should win. So, on each losing bet a dollar is lost, in total $5. On the winning bet if the house were to pay according to true odds, which in this case is 5 to 1, the payout would be $5.
Why do we gamble?
Gamblers don’t think in terms of what can be won in the long run, gaming is a short term past time with short term goals, the bigger the risk, the higher the potential win. every day high risk behaviour usually yields bad results, however every once in a while, can be fun.
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