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Asian_Lottery

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Asian_Lottery

  1. 1. About Asian Lottery  A player chooses 3, 4 or 5 number combinations from 1-10. If the player ‘s numbers appeared exactly from the draw, he wins the jackpot!  A minimum of 2 cents is required to place a bet and a max bet of:  256.40 RMB/combination on 3-Pick game  25.64 RMB/combination on 4-Pick game  2.56 RMB/combination on 5-Pick game  Maximum payout is 250,000 RMB  Game is played every 10 minutes
  2. 2. House Edge Market Chances Payout House Edge 0 – 9 Lottery 3 Picks (In Order) 1 out of 1,000 x 974 2.5% 4 Picks (In Order) 1 out of 10,000 x 9749 2.5% 5 Picks (In Order) 1 out o f 100,000 x 97499 2.5% 3 Picks (Any order) 6 out of 1,000 x 161.5 2.5% Group 3 (Any order) 6 out of 1,000 x 161.5 2.5% 1 – 11 Lottery 3 Picks (Exact Order) 1 out of 990 x 949.4 4.0% 3 Picks (Any Order) 6 out of 990 x 157.4 4.0%
  3. 3. Profit (Assumption)  Turnover/game  20RMB bet per player  20 players per game Equals 400 RMB per game – House earns 10 RMB  Rate of play  10 minutes per game  16 x 7 x 365 operation  Projected Profit  28,800 RMB/Month  Low Note: Profit must always be > Operating Expenses
  4. 4. Apple to Grapes Comparison Between Baccarat and Lotto Baccarat Challenge (Roll on every win) Reverse Martingale Chances House Edge Lotto Challenge Chances House Edge Turn 1RMB to 795 (10 streak needed) 1 out of 894 11.07% 1 RMB to 975 1 out of 1,000 2.5% 1 RMB to 11,494 RMB (14 streak needed) 1 out of 13,552 15.19% 1 RMB to 9,750 1 out of 10,000 2.5% 1 RMB 85,229 RMB (17 streak needed) 1 out of 104,092 18.12% 1 RMB to 97,500 1 out of 100,000 2.5%
  5. 5. Some One Hit Wonder Markets  Philippine Lotto  59% house edge  Loteng (Lotto street-version)  57.7% house edge  Chinese Government Lottery (3-4-5 Pick Selection)  50% house edge  Keno 7-Pick Combination  29.5%  Sicbo Triple Dice Combination Market  30%  Some Egalite Bets in Baccarat  11%
  6. 6. Conclusion  Asian Lottery is a won hit wonder game. The house edge should be adjusted higher due to the fact that no players can wager big compare to “toss-coin-like” casino games (Baccarat, Dragon- Tiger, War, etc.)  For a 4-pick Lotto game it is physically impossible for a player to make the game 50/50. He needs to bet 5,000 combinations physically out of 10,000 to simulate a toss-coin-like game. Example: A big time gambler wants to double his 5,000RMB money in the lotto game. Note: The only way he can to do is wager 1RMB each on 5,000 combinations (4-Pick lottery) 1 RMB bet /combination x 5000 combinations = 5,000 RMB
  7. 7. Suggestion  Option 1  Increase all the market’s house edge proportionally. The bigger the payout ratio the higher the house edge must be. Pros: Higher profit Cons: Players might shift to competitors  Option 2  Addition of toss-coin-like market games  Odd-Even  1-Pick Lottery  Over/Under Total  Others proposed by Marketing team
  8. 8. Market Chances Payout House Edge 0 – 9 Lottery 3 Picks (In Order) 1 out of 1,000 x 899 10% 4 Picks (In Order) 1 out of 10,000 x 8499 15% 5 Picks (In Order) 1 out o f 100,000 x 79999 20% 3 Picks (Any order) 6 out of 1,000 x 149 10% Group 3 (Any order) 6 out of 1,000 x 149 2.5% 1 – 11 Lottery 3 Picks (Exact Order) 1 out of 990 x 890 10.0% 3 Picks (Any Order) 6 out of 990 x 147.5 10.0% Option 1 – Decrease Payout Ratio
  9. 9. Option 2 - New Market Proposal  Odd – Even Market  Payout = 1.95 vs 1.95 - 2.5% House Edge  1-Pick Market  1 or 2,3,4,5, …..  Payout = x 9.5  5% House Edge  Sum of five numbers (22.5 over/under)  Payout = 1.95 vs 1.95  2.5% House Edge  Odd-Even-Even-Odd-Odd Markets  Payout = x 30.0  6.25% House Edge
  10. 10. Advantage of New Markets  Attract big-time gamblers and Casino players  a player can now wager thousands of RMB in a single game which was impossible before. Sample Scenario: 1.) A single player can wager 5,000 RMB on odds/even (2.5% edge) Profit = 5,000RMB x 2.5% = 125RMB or; 2.) 5,000 RMB on 1-Pick market 1,000 RMB/number (0,1,2,3,4 or 1,3,5,7,9 etc..) – 5% Edge Profit = 5,000RMB x 5% = 250RMB

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