The House Edge Across Products: Check

Compare the house edge across sportsbooks, slots, lotteries, and loot boxes. Translate vig, RTP, takeout, and drop rate into a single per-attempt expected loss.

Reasoning Unit·Lesson 2 of 5

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0 of 5 mastered

Assessment

LessonReasoning6 questions

Check

Get 5 of 6 correct to mark the lesson mastered.

1
Match each industry to the term it uses for operator margin.
U.S. sportsbook describing the gap on a -110 / -110 spread
Casino slot machine reported as paying back 92 cents per dollar wagered
State lottery commission keeping 45 cents of every dollar of scratch-off sales
Mobile game publishing 0.6 percent for the featured five-star character
2
A casino slot has a 92 percent RTP. A player at $1 per spin runs 600 spins per hour. About how much does the player lose per hour on average?
Choices for question 2$8$48$92$600
3
Rank these products from smallest per-attempt edge to largest. Place each in the matching band.
Basic-strategy blackjack
Single -110 sportsbook bet
State lottery scratch-off (typical takeout)
4
A live in-play bet has an 8 percent operator margin. A bettor places 20 such bets per game during football season (16 weeks, one game per week, $20 per bet). About how much expected loss is that across the season?
Choices for question 4$32$320$512$5,120
5
Which of these are real informational asymmetries created by undisclosed loot box drop rates? Select all that apply.
Choices for question 5A consumer cannot calculate expected loss without the rateCommunity-collected rate estimates are noisier than operator-published ratesThe operator can change the underlying rate without disclosureLoot boxes are mathematically equivalent to a fair coin flip
6
Outside of gambling, where else does the per-attempt-edge-times-frequency calculation apply?
Choices for question 6Only to credit card interestTo credit card interest, subscriptions, insurance pricing, and investment fees - any product that takes a margin per transaction or per periodOnly to lottery productsIt does not transfer to non-gambling products

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