Aug

30

 Is anyone familiar with writings they would recommend on casino risk management?

You rarely hear of a casino going bust, unlike traders, brokers, etc.

Some of this may be because they are as much a market maker as principal (although NYSE specialists go bust). And there is always zero risk core cash flow from slots, poker tournaments, etc.

But I was wondering if casino's use things like hard stops for the P&L etc. irrespective of statistical distribution expectations? And if they dynamically size their risk relative to house capital by opening and closing down tables as suits? And do they have per player stops too? You get kicked out regardless if your winnings exceed a hard stop?

On a different bent: Phil Ivey, who shook down the Punto Banco desk at Crockfords still hasn't been paid.

Is the below correct that a casino will withhold existing winnings if they suspect you only of card counting (as distinct from refusing to play further with you)? Do the rules or small print somewhere allow them to disbar you from certain 'mental strategies' as distinct from cheating?

"The Curious Case of Poker Pro Phil Ivey's Punto Banco Rake"

Whether what Ivey did was illegal isn't what's being decided. It doesn't need to be illegal for a casino to consider it a violation of its own rules. Counting cards in blackjack, a practice that isn't anything like "edge sorting" but is similarly frowned upon by casinos for giving players an advantage over the house, isn't illegal either. However, a casino can withhold winnings and bar players for counting cards if they want.


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