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Roulette Games as an Investment | How Does it Compare to the Alternatives?

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Roulette Games as an Investment | How Does it Compare to other Forms of Gambling or Savings

As with any form of gambling, a mathematical approach is always best as this allows the player to evaluate the value of each type of bet – whether it be in poker, online roulette or indeed other more common types of gambling such as the lottery. It’s essential to consider numerous figures, such as the probability of winning, the amount of the potential return and the stake risked in order to achieve this.


 

Risk & Probability in Online Roulette Games – It’s fairly simple to quantify the risk and chance of winning in roulette games as it’s simply a case of looking at all potential outcomes with each spin and then considering how many results will mean a win for the player. In fact, we have an extensive, detailed section on this subject over in our Roulette Odds and Probability section.

One of the most common bets in online roulette is red or black. Let’s start with that; assuming the player is using a European Roulette game which has a lower house edge compared to the American version, then with each spin they will have a 48.6% chance of winning with each spin as illustrated more clearly in the table below.

The probability of winning and potential return with a red or black bet in European Roulette

The probability of winning and potential return with a red or black bet in European Roulette. But how does it compare to other Investments such as trading stocks?

This puts a bet on red or black among one of the best in terms of online casino games as it has a relatively low house edge and the risk contrasted to potential return ratio if fairly good. But our aim is to compare online roulette to other types of online gambling or investment choices to see whether it is better or worse overall after considering all factors.

RedBlackWin have already offered a detailed comparison between Roulette and Online Slots but there are so many other options to which we can compare – such as poker, the lottery or sports betting. There is a question we need to address first however.


 

Can Gambling be compared to an Investment? 

Stock Markets, Shares & Trading – The factor most people identify when asked for the difference between the two is ‘risk’. Many associate risk purely with gambling whereas investment is perceived to be the safe option. This isn’t always the case however, particularly with stocks and shares where volatility can result in a huge level of risk – even complete loss of the initial capital investment in some cases.

The key to success with stocks, shares and trading lies in knowledge and information about the markets. If an individual is equipped with this then they stand a strong chance of success. However, many don’t and simply treat the markets like a gambling platform. So there is certainly a level of overlap there between the two world’s of investment and gambling.

Savings Accounts – As a general rule of course, the level of risk involved with investments is considerably lower than that of gambling. For example, a savings account offers a high level of security, the chance of losing the initial sum is virtually zero aside from the exception of the financial establishment collapsing however even then their are security measures in place to protect the investors money. However, with this level of security, the potential for return plummets. Exceptionally low interest rates currently mean the value of money in savings accounts can actually decrease over time because of the affect of inflation – making the whole practice completely pointless.

In a sense, gambling is a form of investment.  As a player in an online casino, you ‘invest’ funds in a game expecting a return. The key difference between this and standard investment is the level of risk. No matter which game you play – from roulette to slots, the casino always has a slight (or sometimes large) statistical advantage. The difficult element is balancing the risk and potential return and then comparing it to other investment options. The section below illustrates this by comparing online roulette to savings accounts and trading.


Investment Types –  Roulette / Trading / Savings Accounts

Online Roulette – Advantages & Disadvantages

– Large Return Possible (For example, double the initial investment
with a red or black bet)

– The return is made in a few minutes, unlike savings accounts when the individual may have to wait number years to see a decent return. Even then inflation becomes a factor reducing the value of the sum.

– No Skill or Knowledge is required to play the game and have a good chance of winning – assuming basic strategies and tips are followed. For example, always playing on a European or French wheel as the house edge is lower compared to other roulette games

– High Risk, especially when compared to a savings account

– The house/casino edge mean’s the probability of losing is slightly higher than that of winning with each spin. This is true of all casino games however European Roulette offers a low house edge which negates this slightly.

– Many players struggle to stay disciplined with their roulette betting resulting in large losses in a relatively short space of time


Trading Stocks & Shares – Advantages & Disadvantages

– With knowledge and understand of the markets, the potential for making a large profit in a small amount of time is there. Particularly with CFD trading where the individual can buy and sell all within a period of a few minutes.  – Market volatility leads to a high level of risk, especially for inexperienced traders who have little reason to enter the trades they start other than by chance

Savings Account – High Security, the chance of losing money is virtually zero

– A small return in exchange for a incredibly small risk.  – Low return, especially with current interest rates

– Multiple years are needed to see a decent return and even then inflation reduces the real world value of the monetary sum in the account


Savings Account – Advantages & Disadvantages

– High Security, the chance of losing money is virtually zero

– A small return in exchange for a incredibly small risk.  – Low return, especially with current interest rates

– Multiple years are needed to see a decent return and even then inflation reduces the real world value of the monetary sum in the account


Online Roulette vs Lottery 

Of course the vast majority of people playing the lottery are hoping to hit the jackpot, which doesn’t exist on roulette games. However, given the odds of winning the aforementioned prize, it really is more realistic to consider the probability of winning the lower prizes as these are the only ones that the overwhelming majority will ever experience winning.

For this comparison, we will focus our attention on the Euromillions lottery game particularly. See the table below for our comparison.

lottery compared to Online roulette

Euromillions (Lottery) vs Online Roulette – Which offers the better investment?

Conclusions – Is Roulette a Good Investment ?

Online roulette offers the potential for a large return in a very short space of time. It also carries with it a high level of risk, especially when compared to safer options such as a savings account. However, very little skill or knowledge is required and assuming the individual bets a large lump sum and then walks away, it actually represents a decent investment considering it offers the chance to double the initial capital investment which would take hundreds of years with some savings accounts and even then inflation would have negated the value.

Play Online Roulette (Lowest House Edge and Largest Probability of Winning of any online game)

 

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