Casino Bankroll Management – Minimizing Risk and Maximizing Fun

Assessing Your Finances

Up front, the most important thing we can say is that the statistical chances state that you will lose money on casino games. 

That’s because every single game has a built-in house advantage. This doesn’t mean that you, specifically, will definitely lose money. But it’s imperative that you keep the probabilities, and that house edge, in mind when determining your bankroll and applying discipline. You have to be realistic.

It’s especially important when you first evaluate your finances. Don’t think of this as a financial ‘investment’ and budget your money accordingly. If you plan to save 20% of your income – even if that’s in stocks and shares – your online casino funds should definitely not be included in that.

Instead, gambling should fall squarely into however much you allow yourself for leisure activities. Treat this just as you would spending money on trips to restaurants, bars, and so on – it’s a fun thing to do in your spare time, but you certainly shouldn’t ‘expect’ to get your money back.

The 50/30/20 Rule

There are endless guides out there about how to divide your income. Of these, the 50/30/20 rule is probably the most common. In short, this states that 50% goes to ‘essentials’ (rent, bills, groceries, etc.), 30% goes to ‘wants’ (shopping, entertainment, travel, and so on), and 20% is saved for the future. 

As noted, your casino bankroll should not come out of that 20% on savings. Instead, it falls squarely into the ‘wants’ category. This is purely a fun diversion, a hobby – not any kind of proven or reliable way to make money. 

How much of that 30% should you spend on casino gaming? That’s completely up to you, depending on how many other hobbies or pastimes you have. A general rule of thumb many bettors use, however, is that no more than 5% of their overall income should go to gambling. If you earn $1,000/month that’s $50, $2,000/month is $100, and so on.

Choosing the Right Games

To an extent, your casino bankroll strategy should revolve around casino games that you actually want to play, of course. Gambling is supposed to be fun, after all, so you should be doing so on games you enjoy. 

That said, there are also economic factors to consider. 

Firstly, the house edge can vary significantly between different games. It may be as little as 0.5% with video poker bankroll management, for example, and all the way up to 29% on some keno (lottery) games. 

It can even vary between different variants of the same game. With roulette money management, for example, European and American roulette have sizable differences in their house edge thanks to the addition of an extra ‘zero’ segment.

Secondly, different games have different levels of risk. This can most obviously be true for your odds of winning. But different games can also have differing buy-in amounts, and – the higher your buy-in – the more risk there is automatically. 

Finally, there’s the inherent volatility of the games you play. Something like baccarat bankroll management is relatively straightforward, for example, because there’s no volatility at all – your chances are always the same. With slots bankroll management, however, there can be an enormous amount of volatility to account for.

Identifying and Avoiding Risky Behaviors

The number one threat to smart betting bankroll management is, quite simply, yourself. It’s all very well identifying your bankroll, and even putting a staking plan in place – but it’s completely up to you to actually execute the whole thing successfully when you play games.

A key part of doing so is learning about risky behaviors which could harm your chances. You can then identify them when they crop up, and subsequently avoid them. 

What we’re talking about here is, of course, responsible gambling. There are lots of ways in which you can stray from this path, with just a few examples including:

There’s no shame in any of this – responsible gambling is something lots of people struggle with. All that matters is that you identify it as quickly as possible, and take steps to correct it, such as talking to a friend or family member, or seeking using one of the many free resources available online.

Know When to Walk Away

Somewhat related to our previous point, it is imperative that you know when to walk away when you play games. Using a betting system (more on that shortly) should help you here. But the temptation will still be there to go one more round; place one more bet.

A large part of this – whether for craps bankroll management or that for any other random games – involves overcoming ‘Gambler’s Fallacy’. This is the belief that previous results have any impact at all on future outcomes. They don’t. There’s no such thing as hot or cold streaks, or being ‘due’ a win. Instead, you should simply keep the cold, hard facts in mind, specifically your actual chances of winning every bet you place and avoid chasing losses.

• Using VIP Programs

With most online casinos, you’ll be entered automatically into the loyalty program when you open a casino account. You’ll then progress through it as you play, unlocking continually better rewards. Most notably, these can include free bets and cash bonuses, both of which help your money go further.

• Triggering Casino Bonuses
  

You will need to spend money, and fulfill certain specific conditions, to trigger a casino’s special offers. This is usually worth doing anyway, since the rewards when gambling online should be in proportion to – or better than – that spend. You’ll definitely need to check that for yourself though, by scrutinizing the T&Cs of any deals you’re interested in. 

• Noting Table Limits

Every game will have its own minimum and maximum limits. The latter will only really trouble the higher rollers. The former, however, will be important to more casual players. Higher minimum spends will involve more risk, but also – of course – bigger rewards in turn. 

• Using Session Bankrolls

It’s often not convenient for bettors to work out their casino bankroll management on a daily basis. After all, many punters don’t play every day. Instead, you may want to use session bankrolls. 

As the name suggests, this sets aside a maximum amount which you’ll allow yourself to spend every time you sit down to play. If you lose that money, the session is over immediately. We’d also recommend having a profit target, however, which you’ll stop playing when you meet, otherwise you could end up playing forever. 

• Using An App

Even the best-laid plans in betting are subject to human error. A great way to help minimize this risk is to use a bankroll management app. Ideally this will be targeted specifically at betting, but even one for general financial investments could work. Either way, it should help to do the calculations for you, and avoid you making costly mistakes.