Controlling the Investor is Almost as Important as Controlling the Dice
The Investor provides the main betting-stake with which the big-bets are made.
If the Investor is the Big-Bettor for the group, then all the bets he makes are deemed to be part of the team-bankroll; whereby any of his big-bet wins are added to the team-bank and any of his big-bet losses are subtracted from the team-bank.
All participants have to agree ahead of time if the shooter's bets (and their subsequent wins and losses) are also part of the team effort, or whether they are to his own personal account.
It is important to understand that if his wagers are covered by the team-bankroll but he is not the Big-Bettor of the team; then he has to carefully shepherd his wagers in a responsible manner. That means he can't go off the reservation on some exotic-betting tangent.
The last person you want betting a majority of the team's bankroll is a gambler.
In fact, if the shooter's bets are being covered by the team-bankroll and he is prone to get into a betting-frenzy once in a while; then you can expect trouble ahead when the large big-bet wins are perniciously chipped away by string after string of the shooter's own small-but-highly-erosive losses.
Similarly, if the big-bettor is prone to making high-risk bets because after all it is "his money"; then your big paydays will almost always be offset by huge losses; and your considerable shooting-talents will end up being nothing more than an amusing distraction for his degeneracy.
Negotiate EVERYTHING up front. If you're not sure: ask. If you are apprehensive: say so.
The big-bets are supposed to be along pre-negotiated lines. If you don't negotiate a firm understanding of how and when they will be made upfront; then the team's profit-results will almost always be far removed from where they should have been.
Set the Ground-Rules
Again, when an investor agrees to put up money for a skilled shooter, one of the first issues that has to be resolved is who will do the big-money betting and who will be responsible for the accounting of net-profit calculations.
Some shooters are skilled enough to do all of that in terms of getting the shooting right…getting the big-money betting right…and getting the net-profit calculations right; but the investor has to take a fairly big leap of faith that the shooter will get it ALL right most of the time.
Likewise, when the skilled shooter is charged with the sole task of doing the shooting while the investor takes on the role of the big-bettor; the shooter has to have enough faith that the backer will make the right bets at the right time and not deviate from the plan to a point where the bets are no more than high-value random shot at a lucky hit.
So obviously ground rules have to be firmly agreed on by all parties before the start of a session.
Dry-Run Mock-Betting Sessions
I highly recommend that the shooter(s) and backer do a few dry run sessions in a hotel room or dealers school so that any betting kinks or misunderstandings can be cleared out of the way long before real money goes on the line.
That part of the exercise is even more enlightening when you carefully study the attitude and demeanor of all participants during the mock-betting phase; it can be very telling.
For example, if the investor is impatient and wants to get to the casino as soon as possible, and during the mock-betting he is very quick to deviate from the plan if a shooter throws a short string of numbers that aren't currently covered by the agreed upon betting-regimen; then you are likely in for some even bigger surprises when the real money gets into action.
Similarly, if a skilled shooter is showing all kinds of anxiety when he sees the size of the big-bettors typical wagers; then he may fold under the stress of having so much of someone else’s money backing his D-I abilities, especially with the anticipation of sharing in bet-wins that are a full order of magnitude larger than he himself has ever wagered.
This effect may be even greater when you are dealing with multiple shooters on an investor-backed team. That is because everyone is anticipating and hoping for success, but they are also collectively prone to fall victim to an affliction I call "bad-shooting group-contagion".
That's a situation where one of the better shooters in the group will throw a bad hand, and then in rapid succession, everyone else throws just as poorly. It's something akin to "sympathetic pregnancy" where the husband will feel a little of the same morning-sickness symptoms as his wife is going through.
I could say much more on this particular subject, but I won't.
In Part Seven of this series we’ll look at how you can deal with and avoid Mis-Estimation of edge vs. Over-Estimation of edge
Good Luck and Good Skill at the Tables…and in Life.
The Mad Professor Copyright © 2008