vpFREE2 Forums

Canada/US Dollar Exchange--How much (if any) of an advantage play??

#1

At a casino on the wrong side of the Cdn/US border (wrong because I have to cross the border to get to it), they are running an infrequent promotion again:

Earn 50 points on your player's card (300$ of coin in total) and get a coupon that you can use to buy $100US at par (that is for $100CDN).

Was there on Friday (that seems to be the only days when it was running).
VP is brutal there--6/5 JOB at all denominations, but VP coin in is treated same as slots. Casino exchange rate available at the time: $1 CDN = $0.78US, which to a Canadian works out to 28% gain.

This would be in addition to the FABULOUS (:)) free play of $2.00 available in the above example.

Intuitively, this seems like a big advantage play--$28 on $300 coin in, even with horrible pay schedule. Assuming that I play 95% payback VP, am I correct? How about for 85% payback penny slots? Again, intuitively only, I'd say yes in the first scenario, no for the second, but that's just my opinion.

Any responses appreciated!!

Was a fun ride home explaining to my good friend how this was the kind of "advantage" I could find in abundance in Las Vegas, which is why i usually go there instead of here.

Thanks to all who contribute here, from Bob Dancer and Jean Scott, to all the other "regular guys and gals", like me!!!

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#2

If your average loss on the play is $15 (5% of $300) and you earn $28 for doing this, you have a small edge. There is variance. Some days you'll win and some you will lose.

Consider: can you do it more than once? If you can do this hundreds of times during the day, it's worth something. If you can only do it once, and you have to drive there (taking time and gas), it's not a big payday. If your entire edge is $10 or so --- and you have to drive more than a mile or two to get it --- why bother? If you can do it many times and your edge is in the hundreds or thousands of dollars, that makes a lot of sense.

Also, unless you plan to leave your money in US dollars (many players near the border keep bankrolls in both US dollars and Canadian dollars because exchanging and forth is expensive), you're going to have to convert it back to Canadian. There's a fee for doing this. You may know the best places in town to do the conversion --- but it's never traded at par.

There are indeed coupon opportunities in Vegas via the LVA coupon book and the from American Casino Guide and certain other places. But for someone who has to pay to fly to Vegas and pay to rent a car and pay to stay in a hotel room once he is here, it's probably not worth it to come to Vegas "just" for this.

Bob

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#3

Actually, did some further research, you can do it up to 10 times per day--the first two cost 50 points each, the next eight, 100 points apiece. This happens three days a week, so i've heard, and it used to be offered for 20 points apiece, but that was before the latest 10-15 cent drop in our dollar relative to the US$.

Alas, it's a 45 minute drive from here, so most of us also use the trip to load up on gas for about $1.50 less per gallon than available here. There are other side benefits, like a nice leisurely drive, but smoking in this casino is not handled well for us non-smokers. Since this place has been such a grind joint for so many people for so long, it very unusual for there to be any positive play--of course when I find out about it, the regulars tended to over play it, and the casino modified (i.e., reduced the offer).

As for Las Vegas, you're right--but if I can play close to even on a cash basis, and get accommodation and food taken care of via comps, then it's a relatively cheap trip!

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#4

Up until the late 1970's, it was possible to exchange Canadian $100 bills for par value at table games in most Reno casinos. When I first became aware of it, it cost $93 to buy a Canadian $100. But the exchange for par lasted even when the Canadian $100 had sunk to $85 US.

I would order $10K in Canadian for $8500, and have a $1500 head-start on my Reno trips. I was primarily a blackjack player at the time, but I realized it would be easier and faster to turn over more $100's by playing the Don't Pass line in craps, making $25 bets and taking full odds. I might get $4-500 on the layout before any bet was resolved. Once all the Canadian was converted, it was on to the BJ games.

When the exchange rate hit $83, casinos began to stop accepting Canadian at the table. The last time I arrived with $10K Canadian, summer of 1978 I think, it was challenging unloading all the Canadian at the one remaining place that accepted it at par.

There was at least one Las Vegas casino that accepted Canadian for par value at the tables, and it was the first place I saw it done. This was the small Holiday Inn casino on the strip. I was playing single-deck BJ there when someone joined the game and threw a Canadian $100 on the table. The dealer gave him $100 in chips, and I couldn't wait to get home and find out how much a Canadian $100 was worth.

--Dunbar

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#5

thevegaspilgrim wrote: "As for Las Vegas, you're right--but if I can play close to even on a cash basis, and get accommodation and food taken care of via comps, then it's a relatively cheap trip!"

Don't forget to assess risk. One type of risk is caused by variance, probably the best tool for that is Dunbar's Risk Analyzer, the formula for 3sd is 3 x betsize x sqrt(variance x hands). Another type of risk is caused by player error, just assuming you will get the computer perfect EV in the casino environment is naive. Another type of risk is overbetting your bankroll, namely if your betsize is more than double your current bankroll x EV / variance you will get bankroll shrinkage even with a positive EV gamble. Another type of risk is not including tax considerations which can generate another fee which you weren't expecting.

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