Creating your own pay tables

September 04, 2007 3:56 AM
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Problem: You know the desired house percentage and the initial jackpot amount, and you wish to calculate the meter increment amount.

Solution. Adjust the total jackpot amount upward or downward until the calculated house percentage reaches the desired figure. Subtract the initial jackpot amount from this figure. Divide the result by the jackpot frequency. This will give you the amount of meter increment.

Example. Using the small pays and initial jackpot figure of $100,000 as above, we want to construct a ticket with a 25% house keep. We adjust the jackpot pay off upward until this figure is achieved:

 

8-SPOT TICKET
PRICE= $2.00

 0 / 8 0
 1 / 8 0
 2 / 8 0
 3 / 8 0
 4 / 8 0
 5 / 8 15
 6 / 8 175
 7 / 8 1,480.00
 8 / 8 132,000.00

HOUSE PC= .2500928

 

Subtracting $100,000 from $132,000 leaves $32,000. Divide $32,000 by 230,114.608 gives you $0.139, or about 14 cents, which is the proper meter increment.

Problem: You know the desired house percentage and the desired meter increment, but you need to determine the proper initial jackpot to meet these conditions.

Solution. Adjust the jackpot pay out higher or lower to achieve the desired house percentage. Multiply the jackpot frequency times the meter increment amount. Subtract the result from the total jackpot, which will give you the correct initial jackpot amount.

Example. We desire a ticket that holds 22% and has a meter increment of 25 cents per ticket, with the small pay outs as on the eight spot above.

 

8-SPOT TICKET
PRICE= $2.00

 0 / 8 0
 1 / 8 0
 2 / 8 0
 3 / 8 0
 4 / 8 0
 5 / 8 15
 6 / 8 175
 7 / 8 1,480.00
 8 / 8

145,850.00

HOUSE PC= .219999

 

Adjusting the jackpot amount upward until the house percentage reaches 22% gives us a jackpot total of $145,850.00. Multiplying 230,114.608 times 25 cents gives a figure of $57,528.75. Subtracting this from the total jackpot of $145,850.00 leaves $88,321.25, which is the proper initial jackpot.

There is one issue which remains. How much money need we put aside to create a self-sustaining jackpot fund? If we want this fund to have an average balance of zero, we need only divide the total jackpot (initial jackpot plus meter increment) at the expected time of hit by the frequency of hit. In the example above, this results in $145,850 divided by 230,115 which equals 63.3 cents per ticket. Thus, even though the meter increment is 25 cents per ticket, we must put aside 63.3 cents per ticket written to have enough, on the average, in our account to pay the total jackpot.

If you have a Keno question that you would like answered, please write to me care of this paper, or contact me on the web via email at kenolil@gmail.com. Well, that’s it for now. Good luck! I’ll see you in line!