Chicago Sun-Times: Keep in mind, house edge and hold are not the same

Q. I take exception to one of your gambling theories: that the house edge is near nil when playing blackjack for the basic strategy player. Though I don't use the strategy, both friends and dealers have called my play average. My quarrel with your theory is that when I go to a casino with $100, I come home empty-handed. Based on what you write, I should at least have $90 plus.

Brad M. Canoga Park, CA

A. Without challenging your quality of play, I think you confirm my theory. You leave the casino financially exhausted because you don't get up after 20 hands. Casinos have long realized that there is no torrent like greed to wash money out of wallets, the basic notion behind the casino vernacularism, "hold." You are confusing house edge with hold.

The "house edge" is a predetermined percentage of each bet that the house takes as payment for letting you play. Casino operators like to call the house edge their "entertainment tax" for allowing you to use the facilities. The casino's "hold," on the other hand, is the share of the chips the player bought ($100 in your case) that are won back by the casino (also $100 in your case). That's how the house's 5-percent edge can result in a 100-percent hold.

Allow me to clarify. If, as you stated, your playing ability is average, the casino would have about a 5-percent edge on each hand you play. Consequently, after 20 hands, based on perpetual play, you should mathematically have $95 remaining. However, the more you play the more you lose. Without discipline, you are most likely going to bet the remaining $95, slowly but surely expanding your losses until your entire $100 bankroll is depleted, giving the house a highly desired 100-percent hold.

The way you combat this empty pocket syndrome is to improve your blackjack play by learning basic strategy. You must drop the casino advantage down to under 1 percent. Correspondingly, discipline is not only a significant characteristic of being a successful gambler, but probably the most important element of money management. You must set loss limits and win goals. If you are going to sit there until your friendly dealer smilingly accepts your entire $100, expect to go home tapped out.

Mark Pilarski writes a nationally syndicated gambling column. E- mail him at pilarski@markpilarski.com.