Casino Questions

In the gambling industry, extremely wealthy patrons, who consistently gamble far more than the average man in the street are known as ‘high rollers’ or ‘whales’, depending on the level of their bankroll. In Las Vegas, casino hosts offer generous complimentary services to these high-stakes gamblers, safe in the knowledge that they are not immune to the unswayable laws of mathematical probability and may, periodically, come a cropper and suffer eye-wateringly heavy losses.

The man who has the dubious distinction of achieving what is believed to be the biggest losing streak in the history of Las Vegas is Japanese-American Terrance Watanabe, former owner of the Oriental Trading Company, founded by his father, Harry Watanabe, in 1932. In 2000, Watanabe sold his stake in the family business, for an undisclosed fortune, and became a philanthropist and self-confessed gambling addict.

In 2007, while staying in what was later described as the ‘most elegant suite’ in Caesars Palace, Watanabe claims that he bet over $825 on a variety of casino games at Caesars Palace and The Rio, losing a total of $127 million. Unlike most high-stakes gamblers, his choices included games, such as keno, roulette and slots, which carry a large house edge. Even in games carrying a much smaller house edge, such as blackjack – which Watanabe would reputedly play, three $50,000 hands at a time, for hours on end – he repeatedly made awful decisions and could lose up to $5 million a day.

Most slot machines are games of pure chance, requiring no experience, skill or strategy. As such, they offer each player an equal, random chance of winning a jackpot but, at the same time, offer casinos a constant, stable source of profit. Indeed, with few exceptions, slot machines generate far and away the highest profit and highest percentage of annual revenue for casinos worldwide.

Modern slot machines can be configured for any Return to Player (RTP) percentage or, in other words, the ratio of total ‘coin in’ to total ‘coin out’ over time, according to one of a series of Pay Table and Reel Strip (PARS) sheets, supplied and licensed by machine manufacturer. Once installed, the PARS determines the house edge – also known, confusingly, as the ‘hold’, or ‘hold percentage’ – of the slot machine in question. Theoretically, the house edge of slot machines can vary between 1% and 50%, according to legal jurisdiction, competition and so on, but typically falls within a narrower range, between 5% and 10%.

In terms of total revenue, slot machines typically account for at least 30% of the gambling income of any casino, but can account for a much higher percentage. On the Las Vegas Strip, for example, where high-stakes table games are very much in evidence, 50% is typical, but elsewhere in Las Vegas, in so-called ‘locals’’ casinos, the figure is closer 88%. In fact, according to a report published by the Center of Gaming Research at the University of Nevada, Las Vegas, in 2018, slot machines contributed $7.71 million, or 64.7%, of the total annual revenues for casinos across the whole of the State of Nevada.

A sucker bet is a bet that overwhelmingly favours the casino – that is, a bet with a huge house advantage, or house edge – by offering odds that are significantly lower than the true, mathematical odds of winning. Sucker bets are often created to fool, or hoodwink, inexperienced players into betting against the odds, although experienced players are often just as bad at evaluating true odds. In a single coin toss, the odds of heads or tails are, of course, even money, or 1/1, but in ten tosses of the same coin, the odds of five heads and five tails are 5/2 against, as counter-intuitive as it may seem.

Blackjack, for example, generally offers a house edge of 0.28%, but even something as apparently innocuous as taking ‘insurance’ against the dealer having blackjack when his upcard is an ace adds up to 7% to the house edge. Craps, too, offers ‘don’t pass/don’t come’ bets with a house edge of 1.36% and ‘pass/come’ bets with a house edge of 1.41%, but anyone bold, or foolhardy, enough to bet on ‘any seven’, with a house edge of 16.67%, has fallen victim to a sucker bet. Worse still is keno, which requires little thought or involvement, but is, nonetheless, an uncomplicated, relaxed form of gambling. Keno players may be less relaxed to learn that, at best, they are giving away a 25% edge to the house and, at worst, an eyewatering 29%.

Louis Theroux’s 2007 documentary “Gambling In Las Vegas,” remains a memorable exploration of the world of high-stakes gambling. Directed by Stuart Cabb, the 60-minute episode takes viewers into the Las Vegas Hilton. The documentary introduces a cast of intriguing gamblers, leaving a lasting impression.

One standout character is Allan Erlick, known as “The Mattress King.” A high-roller from Toronto, Canada, Allan revels in the thrill of gambling at the roulette table, risking substantial amounts. Despite winning $50,000, he embodies the essence of a gambler, stating, “Gamblers never stop.” Accompanied by his friend Richard Wilk, also known as the ‘Whale Hunter,’ Allan’s journey includes moments of opulence in the Hilton’s best suite and candid reflections on the risks of gambling.

Martha, an 80-year-old heavy smoker, is another compelling figure. Having lost over $4 million in seven years, she frequents the casino daily, seemingly unburdened by the financial toll. Her son, Seth, accepts her choices, even as Martha gambles away his potential inheritance. The documentary captures Martha’s carefree attitude, with her asserting, “If there’s nothing left, there’s nothing left.”

Richard Wilk, the ‘Whale Hunter,’ is a key player who facilitates major gamblers’ entry into casinos, ensuring they continue to bet big. His close association with Allan Erlick adds complexity to the narrative, as he describes Allan as a friend and high-roller. The dynamics of their relationship unfold against the backdrop of significant gambling losses.

John Rominelli and Tim Nordahl, presented as “salesmen on a 3-Day Blitz,” contribute a touch of humor. Their banter, laughter, and contrasting fortunes provide moments of levity. Despite their initial confidence, the duo’s gambling escapades take a downturn, highlighting the unpredictable nature of casino activities. Louis Theroux’s interactions with them showcase the highs and lows of the gambling experience.

The documentary skillfully weaves together these diverse stories, offering a glimpse into the captivating world of Las Vegas gambling. The characters, each with their quirks and motivations, contribute to the overall narrative of risk, reward, and the allure of the casino. Louis Theroux’s insightful interviews and observations provide viewers with a nuanced understanding of the mindset of gamblers, capturing both the excitement and the pitfalls of the high-stakes lifestyle.

With its well-received reception by both viewers and critics, “Gambling In Las Vegas” remains a timeless exploration of the human experience within the thrilling and often tumultuous realm of high-stakes gambling.