Video Poker Money Management
>Successful money management is the key
It is the key to making money on casino games. This is particularly true when it comes to games like video poker and slots which are mostly games of chance. People fail at these games because they do not manage their money well. You must look to maximize profits and minimize losses. Greed is the pathway to ruin when it comes to gambling.
The Cost of Video Poker
One reason many people turn to video poker is that the game can be played for a very small investment. In many cases this can be as low as $0.05 per hand. However, winning substantial sums of money at video poker demands a larger bet. Specifically, you will need to play the max bet if you want to reap the full benefits of hitting a Royal Flush. Make no mistake, making a Royal Flush is what your ultimate goal should be when playing video poker.
Many video poker games have a max bet of $4.00 per spin. This amount of money will get you the maximum jackpot when drawing a Royal Flush. Unfortunately, this is just not in the range of many players. If you cannot play the max bet you should be playing the largest bet your bankroll can afford. So, how do you determine the appropriate bankroll for video poker?
To answer this question successfully, one must familiarize themselves with something known as risk of ruin. Risk of ruin is the merely the chance that you will lose your entire bankroll.
Risk of Ruin in Video Poker
Risk of ruin varies according to the video poker game you play and the max bet of the machine. When calculating risk of ruin it is always best to base projections on a maximum bet. For some $0.25 video poker machines, the max bet would be five coins or $1.25.
Let's take Deuces Wild, one of the most popular video poker games, as an example. This game is one of the few that can offer players an expected return of more than 100%. It would be far more likely to encounter machines with a 98% payback. Let's say, in theory, that you had an expectation of a 0.00% return. In other words, your goal is to break even.
A bankroll of $1,061 dollars in this scenario would offer you a 50% risk of ruin. In other words, there is a 50% chance you will lose your entire bankroll in the quest to break even. To give yourself a 1% risk of ruin you would need a bankroll of $7,048.
Determining risk of ruin on every machine is time consuming and requires somewhat complex mathematical formulas. This amounts to more time than most players want to spend analyzing what their bet sizes and bankroll should be. Thankfully, there is a simpler way to get a general idea of bankroll size for video poker and it revolves around that elusive Royal Flush.
Simple Bankroll Requirements for Video Poker
In the game of blackjack many professionals suggest that you have a starting bankroll of 50X the minimum bet. This bankroll size will allow you to withstand a lot of variance while you wait for the deck to turn in your favor. Variance is also a reality in video poker and you can use the same basic principle to determine an appropriate bankroll.
You begin by determining what the payout is for a Royal Flush at the bet size you are playing. Let's say, for the sake of our argument, that a Royal Flush pays 250-1 on the video poker game you are playing. So, if you are playing one unit at $0.25 you will collect 250 units for hitting the Royal. 250 x $0.25 is equal to a win of $62.50 for a $0.25 bet.
To give yourself the best chance of avoiding risk of ruin you should have a starting bankroll of 5X the payout of the Royal Flush. 5 X $62.50 equals $312.50.
Having this size bankroll will give you a lot of spins while you are chasing that Royal Flush. It will also permit you a better chance of breaking even without going broke. Granted, this suggestion is not based on a mathematical formula and is an arbitrary guideline. It isn't meant to be scientific. It is meant to validate that some type of plan is better than no plan at all.
Playing Video Poker Online With a Small Bankroll
Online gambling is becoming more popular in many areas of the world and also legal for more players. Some people become so excited that they create an account, deposit $10, and promptly go broke. They then walk away with the notion that the online games are rigged.
The truth is that they began playing with a small bankroll. It is better to begin with a sizable bankroll when you start wagering at an online casino for several reasons. First of all, the casino will usually give you some kind of matching bonus on your first deposit. The larger your deposit, the more bonus money you can claim. Therefore, it makes sense to start with as much as you can afford to deposit.
You can, however, spend a small amount of money playing video poker online if you want to simply learn the basics of the game without a large expectation of profit. Let's say you made an opening deposit of $20 and wagered $0.05 per hand. This gives you 400 spins of the video poker machine. That's a pretty good chance to hit a Royal Flush, but your winnings will be pretty small. Even so, you can learn the game without risking a large sum of cash.
This is one of the reasons online casinos are so popular. Many live casinos have high minimum bets. Online you can play for far less and do so in the privacy of your own home. If you are ready to take a chance at online video poker, why not check out one of our recommended online casinos. Signing up takes just a few minutes and you'll be on your way to winning real money.