How does one calculate the effect of cash back or free play as to how
much it adds to the ER of a game.
Just for illustration possibly could use a 99.5% game, 20 cb, and $3000
coin in to show computations.
Or same as above but $20 free play.
Cash back or free play as a function of ER
deuceswild1000 wrote:
How does one calculate the effect of cash back or free play as to how
much it adds to the ER of a game.Just for illustration possibly could use a 99.5% game, 20 cb, and
$3000 coin in to show computations.Or same as above but $20 free play.
Whether cb, free play, or a bonus of some type (valued as you find
appropriate), the calculation is simply the value divided by coin-in
(20/3000 = .66%, 100.1% total in your example).
- H.
--- In vpFREE@yahoogroups.com, "Harry Porter" <harry.porter@...>
wrote:
deuceswild1000 wrote:
> How does one calculate the effect of cash back or free play as to
how
> much it adds to the ER of a game.
>
> Just for illustration possibly could use a 99.5% game, 20 cb, and
> $3000 coin in to show computations.
>
> Or same as above but $20 free play.Whether cb, free play, or a bonus of some type (valued as you find
appropriate), the calculation is simply the value divided by coin-in
(20/3000 = .66%, 100.1% total in your example).- H.
Thanks Harry,
That is what I thought also, but that seemed to simple.
DWK
deuceswild1000 wrote:
Thanks Harry,
That is what I thought also, but that seemed to simple.
Despite a lot of my posts, I think "simple" is what vp is all about 
- H.
shouldn't freeplay be discounted slightly? I guess the discount would be so
slight as to not matter...
also, is it commonly accepted to truncate ER percentages instead of rounding
them?
since I'm asking questions (might have asked this one before), shouldn't the
taxes that will have to be declared due to the issuance of W2-Gs be taken
into account when developing strategy?
···
On 5/11/07, Harry Porter <harry.porter@verizon.net> wrote:
deuceswild1000 wrote:
> How does one calculate the effect of cash back or free play as to how
> much it adds to the ER of a game.
>
> Just for illustration possibly could use a 99.5% game, 20 cb, and
> $3000 coin in to show computations.
>
> Or same as above but $20 free play.Whether cb, free play, or a bonus of some type (valued as you find
appropriate), the calculation is simply the value divided by coin-in
(20/3000 = .66%, 100.1% total in your example).- H.
[Non-text portions of this message have been removed]
Eric wrote:
shouldn't freeplay be discounted slightly? I guess the discount
would be so slight as to not matter...
You've answered your own question.
also, is it commonly accepted to truncate ER percentages instead of
rounding them?
As a matter of conservatism, and in recognition of the fact that there
are only a handful of players whose play is "decimal perfect", I truncate.
since I'm asking questions (might have asked this one before),
shouldn't the taxes that will have to be declared due to the issuance
of W2-Gs be taken into account when developing strategy?
Taxes should always be accounted for. But because of differing
circumstances, there's no set advice.
Technically, because all vp income is taxable, W-2'd wins are no
different from a tax perspective than other wins. However, from a
practical perspective, anything other than that is true. As examples:
1040-A filers are in the unfortunate position of paying tax on the
gross amount of all W-2's and suffer the most clearly defined tax
consequence.
For 1040 filers who itemize, accounting for wins and losses may be
necessarily skewed by W-2G's such that deduction phase out is a
consequence.
Each individual is largely left to their own on this. However, in the
greater scheme of things, it may be that (for the average player) the
advantage of keeping things simple may outweigh any benefit found in a
more stringent optimization of strategy that factors taxes.
- Harry
--- In vpFREE@yahoogroups.com, "Harry Porter" <harry.porter@...>
wrote:
Eric wrote:
> shouldn't freeplay be discounted slightly? I guess the discount
> would be so slight as to not matter...You've answered your own question.
> also, is it commonly accepted to truncate ER percentages instead
of
> rounding them?
As a matter of conservatism, and in recognition of the fact that
there
are only a handful of players whose play is "decimal perfect", I
truncate.
> since I'm asking questions (might have asked this one before),
> shouldn't the taxes that will have to be declared due to the
issuance
> of W2-Gs be taken into account when developing strategy?
Taxes should always be accounted for. But because of differing
circumstances, there's no set advice.Technically, because all vp income is taxable, W-2'd wins are no
different from a tax perspective than other wins. However, from a
practical perspective, anything other than that is true. As
examples:
The easiest way to file with large reported wins to to simply send a
statement in lieu of filing.
It will just be businees expense and earning listed proper.
If you already have any record of acceptance on your side from
previous 1040 filing, just say you maintain adequate contemporary
records of play, check cashed , markers and later deposits easily
gotten from records. They normally accept the fact you are not a dumb
bunny for plucking and will need the expense of hauling you in to see
if that's correct. If so, do it once and there's the case later to
cite. CD
<<1040-A filers are in the unfortunate position of paying tax on the
gross amount of all W-2's and suffer the most clearly defined tax
consequence.>>
You can't use a 1040A form to report gambling winnings. The only other income besides wages, salaries, and tips you can report on it is jury duty pay. See Pg 16 of 1040A instructions. You must use Form 1040.
···
________________________________________
Jean $�ott
The new " FRUGAL VIDEO POKER
SCOUTING GUIDE" and other frugal
products are available at my Web site,
http://queenofcomps.com/.