O, Canada

June 5, 2019

I just returned from a visit to Vancouver, BC, in the beautiful Pacific Northwest, one of my favorite parts of the world.  The city, which is known for its great Asian food, its waterfront and the beauty of its surroundings, among many other things, did not disappoint.

But I want to talk about two very little things I was reminded of that are done in Canada, but not in the US, that make life there easier for everyone, and in particular for gamblers.

The first is that pennies no longer are used.  All cash sales are rounded to the nearest nickel, which is the smallest unit of currency generally in circulation.  Given that the penny costs more to produce than it is worth, and that storing and accounting for pennies also is costly, this common-sense approach, with roundings up and roundings down canceling each other out, makes a lot of cents (sorry, I couldn’t resist).

I was reminded of the second when, in the local casino, I hit a jackpot that required a hand pay.  In the States, along with the hand pay would come a W-2G form reporting the gross proceeds of the jackpot to the IRS.  To avoid liability for the tax, it would be up to the player to record his or her offsetting losses, which almost always exist.  In Canada, they realize that fact, and even apply it to lottery winnings, whose large jackpots are the exceptions, presumably treating lottery losses and wins by the aggregate of all players as a wash or a net loss.  After I signed a form for the casino, I was paid in cash and not given any other paper work (US citizens should be aware that, as in the US, net gambling wins, like any income earned anywhere, even if not accompanied by a reporting form, are taxable income, no matter where in the world they are won).

 


The cost of playing “short pay” video poker

April 8, 2019

Traditional “full pay”  or “9/6” (based on their payouts for the full house and flush on a single-coin bet) video poker pays back 45 coins for a full house and 30 coins for a flush  including the return of an original five-coin wager (as explained in earlier posts, a wager of five coins is necessary to be eligible for the enhanced royal flush payout).  Combined with the returns for other winning combinations (which usually but not always remain the same on all machines), the overall average return for full pay jacks or better is 99.5% of all moneys wagered when played using optimum strategy at full coin.  This overall return takes a long time to achieve, since part of it is based on hitting a royal flush, which on average occurs only once in some 40,000 hands, but it’s a useful measure nonetheless.

While full pay jacks or better machines do still exist, they are becoming rare, especially outside competitive gaming markets such as Las Vegas.  Particularly at lower denominations, most jacks or better machines in our area pay 8 coins for a full house and 5 for a flush.  The overall return (again, based on optimum play at full coin, over a long period of time) is 97.3%, or some 2.2% less than full pay.

While 2.2% doesn’t sound like much, it can add up fast.  Let’s assume play on a dollar machine (a level at which full pay machines are available at Mohegan Sun and Foxwoods; the best dollar machines at Turning Stone are somewhere in the middle, some returning 9 for a full house and 5 for a flush and others 8 for a full house and 6 for a flush).  At max coin, that’s $5.00 a spin.  While experienced video poker players can achieve speeds of up to 1,000 hands per hour, and average 600-800 hands per hour, let’s assume a leisurely pace (which I recommend) of 400 hands per hour. That means the player is pushing $2,000 an hour through the machine, which amount is exposed to a house edge of 2.7%.  On average, the house therefore will retain $44 of that amount.  On a full pay machine, with a 0.5% house edge, the house will retain, on average, only $10 — more than three times less.  The average hourly cost of playing a $1.00 short pay jacks or better video poker machine is $34 more than a full pay machine.  As we used to say in Brooklyn, “that ain’t nuttin'”.  And if you’re playing a $5.00 machine ($25.00 per spin), the extra cost per hour is quintupled, to $240 per hour.

Whether to accept the extra cost is, of course, up to you.  If you have a very limited budget, and must play at the $.25 level, you really have no choice —  8/5 machines likely are the best available to you in the northeast (and beware of those paying even less).  At the dollar level, if you live in Albany, the nearest full pay machines are two hours farther away than the nearest 8/5 machines.  At the $5.00 level and above, Turning Stone offers full pay jacks or better, as do the casinos in Connecticut.  Be aware that, regardless of short term results, the more you play, the more your results will skew toward the average return.

Ironically, one of the major responses of the gaming industry to increased competition has been to lower the return to players on its games.  The reasons for this are many, including increased taxation and other items of overhead (New York’s taxes on its non-native American casinos is, not surprisingly, among the nation’s highest, and that money has to come from somewhere).  However, a major reason for for the payout reduction is that it works.  Consumers who normally would boycott a store charging four times more than its competition for a given item accept the gouging, usually out of ignorance.  If you know the cost, you — and only you — can decide whether the convenience, amenities and other factors justify playing the short pay machine.

 

 


Health care conundrums

February 17, 2017

As I advance in age, I am exposed more and more to the health care industry, despite having enjoyed relatively good health until recently.  As a retired New York State employee, I am blessed with excellent health insurance that covers most doctor visits, medical tests and procedures, as well as prescription drugs, with only a relatively modest co-pay. Here are a few observations:

First, it appears that many of our health problems are what a friend of mine calls “diseases of affluence.”  More appropriately, they should be called “diseases of lifestyle,” since they affect people of all socioeconomic strata.  A lot of these are directly influenced by government policies.  For instance, our auto-centric physical infrastructure minimizes the opportunities for and pleasures of walking and cycling, and cannot help but contribute to obesity and other problems based on lack of physical activity.  Our government subsidies to cane sugar and corn (the main ingredient of high fructose corn syrup) help make junk food and sugared soft drinks attractively priced.  This is especially so for the poor, since the SNAP program (formerly known as Food Stamps) allows their purchase with SNAP benefits.  If we collectively spent more on complete streets that were friendly to pedestrians and cyclists, as well as cars, how much could we save on health care (not to mention on school transportation)?  How about if we stopped subsidizing sugar?  I think it would be worth a try.

For all the criticism leveled against it, the Affordable Care Act (“Obamacare”) has achieved something great — it has shifted the dialog from whether health care insurance should be extended to many of those who don’t have it to how the present system should be replaced or improved.  Neither Trump nor his minions are suggesting that those who obtained health insurance through Obamacare should lose it, meaning that they recognize that there is no going back on government’s commitment to growing numbers of its citizens.  Whether things actually get better or worse remains to be seen, but at least no one is talking a bout a pre-Obamacare “reset.”  To me, that is yuge.


Third World New York?

September 14, 2012

A cyclist breaks a wheel on a potholed street in a major city near the State’s capital.

A lawyer goes to the State Library to conduct legal research, only to find that several of the treatises he consulted had not been updated for several years, rendering them virtually useless.  The other public access law library in Albany is open only three days a week.

A person living in a city, two miles from the Capitol,wants to go to downtown Albany by public transit.  She will have to walk a half mile to the nearest bus stop, and even during rush hour, she may wait up to half an hour for a bus.  It may be quicker to walk, except in the winter, when the walkways on the bridges over the railroad tracks are not cleared and become icy.

Compared to what I saw in Sweden this summer, our public sphere is definitely third world.  I  think we have a right to demand — and government has an obligation to provide — basic services of decent quality.  If it can’t, we need to find out why and correct the problem, and it may not be as simple as throwing more money at it.

Even the relatively affluent cannot escape bad roads, traffic delays and, in some cases, poor public schools.  While some of the Republicans’ ideas have some validity, I absolutely disagree with their disagreement with the Obama and Warren observations that no one’s success is due to solely to his or her own efforts.  We all benefit from public services.  Why such an affluent country puts up with such poor services is beyond me.