Why do casinos have more losses than wins?

There are winners and losers at the casino, and the amount of money won equals the amount lost. Just like the law of conservation of mass, the money in each gambler’s hand keeps changing, but the total amount of money on the table remains constant.

The interests between the two sides in the game may increase or decrease, but the overall interest remains unchanged.

What we are talking about is only a theoretical form of gambling; in reality, gambling with a house is not like this.

The house aims to make a profit; they cannot just watch the money circulate among gamblers—they also want a share.

Take sports betting as an example. The bookmaker might manipulate the odds slightly.

For example, in a Premier League showdown, Manchester United hosts Chelsea. The odds offered by the bookmaker are 1:1.9, with Manchester United giving a half-goal. That is, if Manchester United wins, you bet 100 yuan and will receive 190 yuan (including your original stake).

But if the match ends in a draw or Manchester United loses to Chelsea, you will lose 100 yuan.

The probability of Manchester United winning and not winning is each 50%, so half of the bettors bet on Manchester United winning, and the other half bet on Manchester United not winning.

Suppose 100 people bet, each betting 100 yuan. 50 bet on Manchester United winning, and 50 bet on Manchester United not winning.

Regardless of the final result, the bookmaker will pay each of the 50 winners 190 yuan, which costs the bookmaker 50 x 90 = 4,500 yuan; the 50 losers each pay 100 yuan, totaling 5,000 yuan, so the bookmaker earns 500 yuan.

From this, we see that gambling with a house wins less and loses more, so there is a saying: “In the casino, nine out of ten bets are lost.”

Actually, this kind of game is not only found in casinos; it also appears in futures trading, stock trading, various intellectual games, and in everyday life everywhere.

On a hot afternoon, a professor goes to the classroom to give a lecture. Outside the window, workers are constructing something, and the noise from the machines reaches the classroom.

Reluctantly, the professor closes all the windows to block out the ear-piercing noise.

But after closing the windows, a new problem arises: it becomes too hot.

The students begin to protest, asking to open the windows. The professor firmly refuses, believing that the quietness of the classroom is much more important than the discomfort caused by the heat.

Let’s analyze this game: if the windows are opened, students get relief from the heat, gaining a benefit of 1, but opening the windows means the classroom is not quiet, so the professor’s benefit is -1; if the windows are closed, students feel hot and uncomfortable, with a benefit of -1, while the professor gets the quiet he wants, with a benefit of 1.

In summary, whether the windows are open or closed, the sum of interests for both sides is 0, indicating this is a zero-sum game.

Does this problem have a solution?

Just as everyone is about to accept the professor’s choice, a beautiful female student stands up. She walks to the window and opens it.

The professor is obviously displeased and tries to stop her. This is actually a protection of one’s own interests in the game.

But after opening the window, the female student says to the workers downstairs: “Hi! Sorry, we have a small problem now. It’s too hot inside with the windows closed, but too noisy with them open. Could you please work somewhere else for now and come back in about 45 minutes?”

The workers downstairs say no problem and choose to stop construction. The issue is resolved, and the professor looks at the female student with approval.

Let’s analyze again: at this moment, the workers outside have stopped working. If they choose to open the windows, everyone can enjoy the coolness without affecting the quiet; if they choose to close the windows, everyone only gets quietness and not the coolness.

At this point, the professor and students will choose to open the windows because their interests are no longer in conflict but aligned, so there is no longer a game between them.

This story tells us that the key to solving a negative-sum game is to eliminate the conflict over interests between both parties. **$FLOKI **$FLOW **$FLOCK **