ohbehave said:
Correct me if I'm wrong but unless the high roller is an AP the 20% rebate doesn't give him an edge, but it does reduce the HE to .4% on an off the top HE of .5%. The house is simply giving him a "volume discount" on his play.
Yes - IF the house calculates it CORRECTLY they will be simply giving him a "volume discount". If they do NOT, and require too little hours of play for the rebate to kick in; the player has a HUGE advantage.
If he has a winning trip, he gets to keep 100% of his winnings; on a losing trip he gets a 20% rebate. Obviously, the whole thing depends upon how many hours of play constitutes a "trip".
For the sake of argument, suppose the house were stupid enough to not declare what they call a "trip". He could play ONE HAND at $100,000 and call it a "trip"; come back the next day, play one hand & call THAT a "trip"; etc.;etc. After 100 such trips, he will on the average lose slightly more than 50 times and win slightly less than 50 times. He will have won about 5 million dollars and have lost about 5 million, BUT - he gets a REBATE on the 5 million he lost, resulting in a net profit of $1 million.
Now obviously, no casino is going to be THAT stupid; but there IS an amount of play at which the 20% agreement becomes "break-even". An astute person who knows this break-even point could conceivably negotiate a better than break-even deal, if he can find a foolish enough casino manager (and believe me when I tell you, there is NO shortage of dumb casino managers out there). :laugh: