Unlike most (if not all) games on offer in a casino, blackjack does not provide a fixed edge for the house.

Available data and formulae published by renowned blackjack authorities Snyder, Wong, Griffin et al suggest that the game on offer in Australian casinos provides a house edge of between 0.5% and 0.6% when basic strategy is employed.

Actual percentages realized are dependent on the skill of the players. The first casino to open up in a new location will yield much higher returns than one that has been operating for several years. This is due to the fact that players become more skilful as time goes on.

Generally a casino that has been operating for several years with a relatively small tourist throughput will realize about 2%. Many players will be playing at a much higher disadvantage than this, with a few players, those that took the time to learn basic strategy, giving away only 0.5%.

It is important to understand that we are not talking about professional players or card counters, simply someone who is following the recommended way to play the game.

When considering offering complimentaries or player incentive schemes on the game of blackjack, it is important for the casino operator to assess the skill level of the player so that the house edge can be calculated. A bad player averaging $50 per hand may be worth more than a skilful player averaging $500 per hand.

This assessment procedure becomes absolutely vital when offering premium players cash rebates over 0.5%.

Take a player on a 0.65% rebate, betting two boxes of $10,000. His turnover, head to head, will be close to two million dollars per hour.
His expected loss is $2 000 000 x 0.5% = $10 000 per hour
His rebate on turnover is $2 000 000 x 0.65% = $13 000 per hour
His net expectation is = $3 000 per hour
This means that he is losing $10 000 per hour over the tables only to receive the equivalent of $13 000 per hour back as rebates.

Remember this is a basic strategy player not a card counter.

It can reasonably be assumed that someone who is successful enough to have the wherewithal to wager twenty thousand dollars per hand has taken the time to learn the basics of the game.

A casino can not afford to give awy 0.65% unless they are absolutely certain that they are up against a bad player. Offering a rebate that is greater than the theoretical house edge in the hope that the player will fit the mould and play badly is flirting with disaster.

Cash incentives should be based on the theoretical house edge of 0.5% or calculated after the player's actual average playing disadvantage is assessed. If the latter is employed then the player should be reassessed on a regular basis.

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