Making Insurance Profitable Rather Than a Loss

On 12.04.09, In Blackjack Strategy, Online Blackjack, Uncategorized, By Vivi

In my last post I covered what insurance really is. Also discussed was why taking insurance will cost you more money in the long run. However, there is one instance in which it is actually profitable to take insurance.

If you are a card counting player then you are able to distinguish the one instance in which it is good to take insurance.

In order to be in that one instance two circumstances must be in place first:

You must be playing with a remaining deck that is rich in ten value cards. You must also have been dealt a natural blackjack.

Now, let’s examine the two profitable results that can happen once you find yourself in that instance of a high card rich deck and are holding a natural.

For this example, we will say that you are playing at a $10 table. You have been dealt a natural blackjack and the dealer’s up card is an Ace. You have been counting the deck as the game has been played. You know that the deck is rich in ten value cards. Because of the dealer’s Ace you are offered insurance. Because this is that one instance when it is favorable to take insurance, you take it.

The first result is that the dealer’s hole card is a ten value card—he has a natural blackjack too. You will collect on your insurance bet—this is because insurance is really a side bet on whether or not the dealer’s hole card is a ten value, and since it is you win the side bet with a 2-1 payout: $10. As for you both having naturals, that is a push and your original bet is returned to you. But you still made a net gain of $10 all because you took insurance. If you had not taken it, while you would not have lost any money, you would not have gained any either.

The other result is that the dealer does not have a natural, so you lose the insurance bet. But since you have a natural blackjack you won the 3-2 payout. You win $15 minus the $5 insurance bet. Your net gain is still $10.

This is how insurance can in fact be profitable for you.

But you must be dealt a natural blackjack. And you must have been card counting and know that the deck is rich in ten value cards.

If you do not have both of those then do not take insurance.

Tagged with: • • • •
 
0 Comments
Leave A Response

What is Insurance?

On 11.24.09, In Blackjack Strategy, Online Blackjack, Uncategorized, By Vivi

As you play blackjack, there will come a time when you are offered insurance. This seems like a nice thing for a casino, online or land based to do, offering to insure your bet. But taking insurance can actually cost you more in the long run. It is one of those little things a casino does to try to take a bit more of your money.

There are two parts to understanding insurance: knowing what it really is and how it really works, and when it is profitable to take insurance—there is only one instance that it is.

First what insurance is.

You are offered insurance when the dealer’s up card is an Ace. Insurance is offered because an Ace is necessary to having a natural blackjack. On the surface, the casino would like you to believe that taking insurance will protect you from losing your bet if the dealer has a natural blackjack.

What insurance really is, is a side bet that the dealer’s hole card is a ten-value card, the other card required for a natural blackjack. With insurance there are three chances of winning, one pushing and two losing chances. Again, on the surface it sounds pretty good, but it is not.

And here’s why. We are going to look at insurance from a statistics point of view, considering an infinite shoe—and since most casinos use six to eight decks and online casinos use Random Number Generators, the numbers and probability are very close. There are 9-4 odds against the whole card being a ten value card.

Translating this to money, we will say that you make 1300 $5 insurance bets. You would win your insurance bet 400 times, making $4,000. But you will also lose 900 times, losing $4,500. That means you will lose $500 for taking insurance.

In my next post I will explain the one circumstance under which it is advisable to take insurance.

Look for Making Insurance Profitable Rather Than a Loss.

Tagged with: • • • • •
 
0 Comments
Leave A Response

Breaking Into Blackjack

On 11.17.09, In Blackjack Strategy, Online Blackjack, Uncategorized, By Vivi

Learning a new game can be a bit daunting. Then sitting down and playing it with seasoned players can make for some fear and avoidance of the game.

Blackjack can be like this. It is not uncommon to find slots players in casinos that would love to play blackjack, but they will not. They are afraid. They are afraid of making a mistake or not playing well.

And given how some seasoned players will berate novice players for making a mistake it is no wonder that novice players and even potential players are a bit nervous about playing.

But this can be overcome. You just need to build up your confidence is all.

This can be done with practice and basic strategy.

The easiest place to start is in the beginning, by learning the basic rules of blackjack. Learn what each play and how a round is played. Then practice playing in an online casino’s free play mode. That is one of the advantages found in the rise of online casinos—players can play for free so that they can learn a new game and to practice.

The real key to building your confidence as a novice blackjack player is basic strategy. This is a chart with the best statistical plays for every hand against every dealer up card. And it is perfectly legal to use in casino both land based and online.

All you have to do in regards to basic strategy is make the play that it tells you to based on what the dealer’s up card is. It is that simple. You may not win every hand, but you will win more hands playing with the chart than without it.

Since basic strategy is regarded as the best way to play in most cases you will not have to worry about seasoned players complaining about how you play your hand. And remember, it is your money and your hand—you do not have to play how another player tells you to.

Tagged with: • • • •
 
0 Comments
Leave A Response

About Even Money

On 11.13.09, In Blackjack Strategy, Online Blackjack, Uncategorized, By Vivi

A lot of beginning blackjack players have heard of even money. But they may not be aware of what exactly it does, and how it can actually hurt profit potential.

Even money is only offered under one set of circumstances: you must have been dealt a natural blackjack and the dealer must have an Ace up card. Even money will then be offered. It can be thought of as a sort of “insurance” bet against the dealer also having a natural blackjack.

If you and the dealer both have natural blackjacks you have to push, and your original bet is returned to you. This is not winning but it is not losing either.

If you elect to take even money you will receive and immediate 1 to 1 payout. Then the dealer will reveal his hole card.

The only problem with even money is that it will actually hurt your profit potential by about 4%. This is because you have the highest ranking hand in blackjack and you are playing it safe by accepting even money and its 1 to 1 payout.

If you decline even money you are not risking anything because you will get your original bet back if the dealer has a natural blackjack. But if the dealer does not have a natural blackjack, has a smaller hand total and plays until he busts, you will win. And if you win, that is when you receive the 3 to 2 payout.

The majority of seasoned blackjack players will advise you to decline even money. You will stand a better chance at winning the 3 to 2 payout and you are not losing anything. A push is the worst case scenario here, and if that happens you will have your bet returned to you is all.

Take the risk and decline even money.

Tagged with: • • • •
 
0 Comments
Leave A Response

Perfect Basic Strategy

On 11.06.09, In Blackjack Strategy, Online Blackjack, Uncategorized, By Vivi

It is possible to play perfect basic strategy. And you will want to play as such as it will benefit your odds. This is your best chance when playing blackjack to bring the odds as close to even as possible.

Blackjack usually carries a house edge ranging from 2% to 5%. If you play perfect basic strategy, you can narrow that edge to 0.5%. But you must play it perfectly.

When you are looking at a basic strategy chart you are looking at the best statistical odds for every single hand of blackjack against any card the dealer may have up. Basic Strategy can also be used when playing online blackjack as well.

Playing perfect basic strategy means playing your hand exactly as the chart dictates to. This sounds easier than it is, especially when it you have a stiff hand. But in most cases this will be easy to do. Just look at your chart and look to see what the best possible move is against the dealer’s upcard. Then do it. Do not question it.

It is when you question the play dictated that you reverse your odds. For a hand value of 13 versus a dealer’s 4, you are told stand. But your mind tells you that you would be better off hitting because there is no way for you to win. But consider this. The dealer will of course hit, and keep hitting. The dealer has a better chance of busting than you do if you hit.

Basic strategy will only drop the house edge to 0.5% if you play every move according to the chart. Bare in mind that you will not win every single hand. Basic strategy does not guarantee a win every time—casinos would have banned it if it did.

But it does give you much better odds, meaning you will win more often playing with the chart than without playing with it. But it only works if, regardless of whether you won or lost a hand, if you stick with it and keep following it.

Tagged with: • • • • •
 
0 Comments
Leave A Response
Next Entries »
Go To Top »