Our great friend, Deadcat, recently asked another one of his thought-provoking questions: From time to time, shooters get the opportunity to play with OPM, Other People's Money.
Suppose you were "fortunate" enough to be approached by an "investor." He knows enough about DI to know that a good shooter can make craps a positive expectation game.
He's seen you shoot and he's had the thought, "If I put his shooting with my money, we could make some serious bank." Let's suppose he's willing to put $20,000 in play. He wants you to turn it into more. What do you tell him? What kind of return (ROI) do you suggest is possible? Do you go for the highest rate of short term return or shoot for long term gains?
What's a fair cut for your work? Would you consider bringing in a couple more shooters to help? In other words, I'm giving you guys a pretty open question. Keep in mind that if it goes well at the beginning, he'll probably want to do it again and keep doing it as long as it's profitable. DC, that is certainly a great set of questions, but it’s going to take a series of articles to properly answer them; so let’s start:
What is the REAL Bankroll?
Let's start with his A-P gaming-investment bankroll of $20,000. An investor may 'say' he's willing to put up $20k, but we have to scratch just a little below the surface to see if this is true or not.
If he as the investor and you as the shooter start off with $20,000 but quickly drop $5,000; how willing is he to carry on at that point? What about if the b-roll drops to $10,000 in win-some/lose-some dribs and drabs over the first day or two of a three-day weekend?
Like many players who have a session buy-in of $1000, but are only willing to lose $500 of it; the buy-in amount is nothing more than a false psychological construct under which they are then able to say, I only lost 50% of my buy-in.
The fact is, if they are only willing to lose $500, and they do end up losing $500; then they've lost 100% of everything they were willing to risk.
If that helps them 'feel' like it's less of a loss, especially on the mental side of their game, that's fine; but when it comes to an investor who says he's willing to put up $20k (but may only be willing to lose 50% of that); then you have to establish some firm and fast ground-rules up front.
You would be surprised at the number of investors who say they are used to +/-$50,000 bankroll swings during any given trip; yet they'll start to get edgier than a strung-out crack-whore if you have one or two minor $3,000 or $4,000 drawdowns in a row.
The reason? They are used to betting that way when they are shooting, but they become as nervous as a first-John hooker when someone else is controlling their destiny.
How Are the Bets Handled?
Generally, the investor plays the part of the Big Bettor, but that task is often taken on by a middle-man (known by both the investor as well as the shooter), which offers a bit of a trust-issue buffer between the two.
The best investor/shooter teams are comprised of players that you would NEVER equate with playing together, much less having anything in common with each other in their day-to-day lives...and it should stay that way at the tables.
If there is a middle-man, then he can't appear to know both the investor and the shooter either, though appearing to know one or the other is fine.
If the casinos suspects you are part of a fairly well-financed team; then you can expect close surveillance scrutiny, but not banning (for the time being).
For profitable longevity, it is important that members of your team don't all look like they would 'fit in' at the local Rotary club, PTA barbeque, or NRA meeting...they all don't wear the same general style of clothing, and they certainly don't look like they'd all enjoy the same type of music.
The more dissimilar they look, and the more incongruent they act, and the more they each individually fit into widely disparate pit-viper stereotypes; the better their chances of unhindered winning that can go totally undetected and correlatively unassociated for YEARS and YEARS.
We’ll get to a few more aspects of playing for an investor in Part Two of this series.
Good Luck and Good Skill at the Tables…and in Life.
The Mad Professor Copyright © 2008