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Implied Warranties re VP Products -- was "Questions about Bankroll" on VPFree

We have strayed into an area that I think deserves its own thread, so
I've changed the subject line, etc. Since I am going to speak
specifically about FrugalVP and WinPoker, I am also taking the liberty
of cross-posting to those groups, as well, with Larry's consent.

In the old VPFree thread "Questions about Bankroll", Lawrence Boxer wrote:

... If, however, one were to take
the mathematical models of ER and variance to court, a judge might
well rule that there is an inherent promise of success when the
"products" are used by the consumer as a basis for play. And, in
fact, they are designed specifically as models for how to best
achieve success against ER and variance. So in a very strong sense,
there is an implied promise of success. If not, then why use such
models as a strategic tool?

snip

I have to disagree with you on several grounds, but first let's define
what we're talking about here. When you say "products" in connection
with VP, there are only three that come to my mind: books, computer
programs, and strategy cards. You can reply with a post of any others
that you can think of. I will cover what I think are insurmountable
legal hurdles for all three types of products in any sort of an implied
warranty claim, but first I want to briefly comment specifically on
'Books' and 'Computer Programs'.

Without conceding the point that there might be any sort of implied
warranty to any degree at all, I feel that books (considering their
usual length and frequent comprehensive coverage) and computer programs
(with their usual help files and licenses) might completely defeat a
claim such as you've suggested, without even getting into the other
problems associated with such a claim. Naturally, I don't have access
to every computer program and book on video poker, but a couple of
examples will suffice. I looked at WinPoker, FrugalVP, and
VPStrategyMaster; excerpts from their various license and help files
appear at the end of this post for those interested enough to want to
read them.

Now, as far as 'books' on VP are concerned, I am confident that most of
them -- certainly those which are good and thorough in their coverage of
the subject -- somehow make it abundantly clear that Video Poker is a
GAME OF CHANCE, i.e., 'a gamble', and that nothing is EVER 'guaranteed'.

Strategy cards, of course, are probably all too brief to contain any
disclaimer language, although I don't know if those who sell them happen
to include any sort of instructions on their use that might have
disclaimer language. When I begin to market mine, I will be sure to
include some appropriate provisions, since in this day and age there are
always some folks who want to make something from nothing in court.

Aside from the above, and even if there is no disclaimer or notice,
their are practical problems with asserting any sort of a claim of the
type you've suggested. Let's refer back to your post for a minute; you
said "a judge might well rule that there is an inherent promise of success."
To begin with, and not to sound like Bill Clinton, this all depends on
what the definition of "success" is. If it can only mean that you will
actually make a profit playing VP, and you have lost instead, then you
have just cleared the first hurdle, but with some big ones yet to come.
But if the meaning can also reasonably include
"_minimizing_your_losses_" ... which is exactly what I believe that they
actually do, both short-term and long-term, and which is also exactly
what I think is implied ... then at the very start of your case you
already have to deal with the prospect/possibility that the 'product'
was, in fact, successful despite your losses. And then, with either
interpretation, you still face BIG problems. First and foremost is
proof of damages as well as proof that the product failed; any claimant
would therefore be required to prove what their losses were BECAUSE OF
THE PRODUCT as well as when and how the product failed; after all, your
losses could well be due to your OWN mistakes rather than any deficiency
with the product. This would require a claimant to prove what they
would have won or lost if they had NOT used the product, which of course
is an impossibility unless the casinos start showing (and allowing you
to record) 'what would have been' if your holds were different ... and
THAT isn't going to happen. In my opinion, merely asserting that a
person gambled because the product held out the prospect for success,
and then did not deliver, would not be enough without compelling
evidence that the person would never have gambled at all were it not for
the product; I think that would be awfully hard to accomplish based upon
mere 'implied' promises, which are, at best, vague and contrary to all
common sense. Now, I will admit that you'd almost certainly have a
different case if the product came right out and said: "You WILL win if
you use this product" or "We guarantee that you will win" or something
to that effect; but I've never seen a gambling product marketed with
such blantantly false assertions. I am confident enough about this that
I will not hesitate to use a marketing slogan like: "WIN with the BEST
video poker strategy: www.BestStrategyCards.com" ... when I finally
begin to sell my own cards.

Another big problem would, in my opinion, be to find a GOOD lawyer who
would even take the case ... unless you're prepared to fork over some
big money, win or lose; the prospect for winning this type of case with
any sizeable recovery stinks, so I can't see this ever being taken on a
contingency fee basis except by some incompetent attorney who would
probably lose the case.

There are lots of other smaller issues as well, such as jurisdiction and
lack of precedent, and whether a jury would be sympathetic to 'the idiot
who lost his house gambling'. And you had better be sure that there is
no evidence that you lost some of your money gambling on anything else
besides VP; i.e., if you were to claim that you lost a bundle playing VP
... which you would never have played if not for the promises of the
'product', the defense would have a hayday if they could prove that you
also gambled at the tables, or regular slots, etc., and all those casino
records of your play would most certainly be subject to subpoena. There
are lots of ways that such info would help the defense, but I won't
spend time getting into all of that.

The bottom line is that all of these products, so long as they are
_technically_ accurate, normally help a player by providing the
statistically best play; whether, by chance, a different hold would have
actually been better in a casino will never be known because casinos
don't offer a feature like WinPoker's "Show Next Cards" (at least not
that I've ever heard of). And because of more accurate play, the normal
result is a less rapid decline in bankroll/stake, which prolongs play.
Statistical characteristics like ER and variance ordinarily become more
representative of a player's actual experience as the number of games
played increases, but it is possible and valid, in my opinion, to make
short-term statistical predictions that are reasonably accurate within
their limits for purposes of assessing Risk of Ruin and
bankroll/session-stake requirements.

Cheers.

Bill Velek
23 years as an attorney; 18 years as a judge

DISCLAIMERS BELOW:

WinPoker has the strongest disclaimer, with the following language
(appearing between lines of asterisks) as follows:
*******************************WinPoker's Disclaimer********************
THE AUTHOR DISCLAIMS ALL WARRANTIES RELATING TO THIS SOFTWARE WHETHER
EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND
ALL SUCH WARRANTIES ARE EXPRESSLY AND SPECIFICALLY DISCLAINED. NEITHER
THE AUTHOR NOR ANYONE ELSE WHO HAS BEEN INVOLVED IN THE CREATION,
PRODUCTION OR DELIVERY OF THIS SOFTWARE SHALL BE LIABLE FOR ANY DIRECT,
INDIRECT, CONSEQUENTIAL OR INCIDENTAL DAMAGES ARISING OUT OF THE USE OR
INABILITY TO USE SUCH SOFTWARE EVEN IF THE AUTHOR HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES OR CLAIMS. IN NO EVENT SHALL THE
AUTHOR'S LIABILITY FOR ANY DAMAGES EVER EXCEED THE PRICE PAID FOR THE
LICENSE TO USE THE SOFTWARE REGARDLESS OF CLAIM. THE PERSON USING THE
SOFTWARE BEARS ALL RISK AS TO THE QUALITY AND PERFORMANCE OF THE SOFTWARE.

This software is not intended to encourage or promote gambling. There
can be no assurance that the results from this program can be
effectively applied to casino gambling. The casino video poker machines
are ruled solely by internal random number generators. WinPoker has no
way of knowing the specifics of the casino random number generators.
WinPoker was intended to teach you the practical application of
statistical analysis as applied to 52, 53 , 54, 56 and 57 card decks.
************************END of WinPoker***************
_Pertinent_Parts_ of Frugal's disclaimer language in its software
license are below and between the lines of asterisks. I did snip some
standard warranty language bearing upon the operation of the program and
its compatibility with hardware and other software, but nothing
'snipped' pertained to data or strategy charts and a user's reliance
thereon, but the license does prohibit distribution of strategy charts
produced by FrugalVP "whether tweaked or not" (which, incidentally, is
one of several reasons why I am independently doing all of the math for
my own brand of strategy cards).
****************************FrugalVP's License and
Disclaimer*********************
THE WARRANTY AND REMEDY PROVIDED ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL
OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE. THE END-USER ASSUMES ALL RISK AS TO THE SUITABILITY, QUALITY,
AND PERFORMANCE OF THE SOFTWARE. IN NO EVENT WILL LICENSOR, OR ITS
DIRECTORS, OFFICERS, EMPLOYEES OR AFFILIATES, BE LIABLE TO THE END-USER
FOR ANY CONSEQUENTIAL INCIDENTAL, INDIRECT, SPECIAL OR EXEMPLARY DAMAGES
(INCLUDING DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION,
LOSS OF DATA OR BUSINESS INFORMATION, AND THE LIKE) ARISING OUT OF THE
USE OF OR INABILITY TO USE THE SOFTWARE OR ACCOMPANYING WRITTEN
MATERIALS, EVEN IF LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

LICENSOR'S LIABILITY TO THE END-USER (IF ANY) FOR ACTUAL DIRECT DAMAGES
FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF THE ACTION, WILL
BE LIMITED TO, AND IN NO EVENT SHALL EXCEED, THE AMOUNT ORIGINALLY PAID
TO LICENSOR FOR THE LICENSE OF THE SOFTWARE.
*************************End of FrugalVP****************
I was unable to find anything really looking much like a disclaimer in
TomSki's "Video Poker Strategy Master" <commonly called 'VPSM'> except
for this language which might help defend against any implied warranty
claim on grounds that the user was actually given notice that his
program is not as accurate as other programs (WinPoker and VP Tutor);
this is not how I would have handled the legal side, but then Tom might
not have consulted with an attorney ...
*********************VPSM*********************
       When playing on the computer with BDPWinPoker or VP Tutor, it
will at times show a different play than may be seen on the VPSM
strategy listing. When this happens, BDPWinPoker or VP Tutor will always
correct. (note this may not be true of other game playing software that
sometimes gives an incorrect play) The strategy listing of VPSM would
be too unwieldy if it were to list every single obscure penalty card
situtaion. For games that return over 100%, it is more efficient to just
pick a reasonable choice, rather than spend precious time searching for
the absolutely best play. This is what is meant by the term "Optimum
Play". The goal is to optimize your net win per hour. By playing more
hands on 100%+ machines, one can win more by playing faster with a few
very minor errors, than one could win by slowing down to make sure no
mistake was ever made. (note that on games that return less than 100%,
no strategy or money management scheme can ever make you a long term
winner. In other words, you WILL LOSE period!) However, for those that
wish to explore every penalty card possibility, VPSM provides an
excellent starting point from which to begin your search. Simply look at
the EV listing of each strategy holding, and for the ones that are close
in value, punch in different penalty card situations to see if any cases
are missing.
*************************End of VPSM******************

[Non-text portions of this message have been removed]

Bill, you have provided a thoughtful analysis and your points are
well made.

I just want to make it clear to you (and others who may have missed
the point) that my reference to taking the models of ER and variance
to court was meant totally in jest. That is why the word product was
enclosed in quotation marks. Also, I want to make it clear that my
reference was to those two "products" only, and not to any games,
tutorials, books, or other products, many of which contain
disclaimers already.

The mathematical models of ER and variance are, however, used by
players as if they are "products," which of course they are not, with
some kind of implied guarantee that they will lead to success, when
in fact they are merely approximations, if even that, and of
questionable value in short term play. That was the point of it.

I am a firm believer in personal responsibility, and I believe that a
person's gambling losses are completely his or her responsibility. As
marketers of a betting system several years ago, we were very careful
about alerting customers to the fact that there were no
guarantees "either direct or implied." That is not to say that some
buyers didn't believe that our system promissed positive results
anyway. And it's not to say that we didn't also believe that it
did. Of course there was an implied promise! It just wasn't
actionable.

lb

lawrenceboxer wrote:

Bill, you have provided a thoughtful analysis and your points are
well made.

Thanks.

I just want to make it clear to you (and others who may have missed
the point) that my reference to taking the models of ER and variance
to court was meant totally in jest. ...

Well, I didn't think that _YOU_ were planning a suit, but you never know if some idiot out there will read your post and think: "Hey, that's a pretty good idea." Just thought I'd do my part to try to discourage that sort of thinking, especially since I figured that this is probably something that has never been discussed here before and some folks might find it interesting. That's why I put it under its own thread and cross-posted it. I'm also cross-posting this to those same groups; my apologies to folks who are inconvenienced by multiple receipts of the same message.

... That is why the word product was
enclosed in quotation marks. Also, I want to make it clear that my
reference was to those two "products" only, and not to any games,
tutorials, books, or other products, many of which contain
disclaimers already.

Well, I was just trying to cover the whole 'product' area in general.

The mathematical models of ER and variance are, however, used by
players as if they are "products," which of course they are not, with
some kind of implied guarantee that they will lead to success, when
in fact they are merely approximations, if even that, and of
questionable value in short term play. That was the point of it.

I agree with Jean Scott and other posters who have indicated that "bankroll" is meant in the context of the long-term, except that the idea of calculating any approximate amount under that circumstance is pretty much useless; this is because 'the long-term' actually means the rest of our lives, but we have no way of forseeing what will happen along the way. In other words, unless I'm planning to establish an annuity and just gamble from its distributions, what practical good is it for me to know that my bankroll to be able to play a certain game for the rest of my life is, let's say, $6,000.00. Next year I will either have the 'stake' for a visit, or I won't. I don't need (or care) to know how much I will need for my lifetime, because my available "bankroll" is always apt to change based on other needs and fluctuations in my overall financial situation. All I really need to know at any given time is how much to take with me on my next visit -- my 'session stake'. If I'm going to fly to Vegas and spend three days playing 'Deuces Wild', I want to know how much I will _probably_ need in order to last me the entire trip so I won't not spend the last day just watching TV because I'm broke. That sort of thing.

I am a firm believer in personal responsibility, and I believe that a
person's gambling losses are completely his or her responsibility. ...

I agree, but we've seen a disturbing trend lately, especially in the area of products liability. Gun manufacturers liable when a gun is misused by a criminal; bartenders and waitresses when drunk-drivers kill/main someone (a busy waitress shouldn't be responsible for keeping track of how many drinks each of her customers has consumed, or supervise how pitchers of beer are consumed by a group of people at a table); tobacco companies despite years of warnings on cigarette packs, etc. This is why we see absurd things like a warning label on a hair-dryer: "Do not use while taking a shower."

As marketers of a betting system several years ago, ...

What was it?

... we were very careful
about alerting customers to the fact that there were no
guarantees "either direct or implied." ...

Which is certainly wise, and pretty much essential these days. I'll be sure to use one.

... That is not to say that some
buyers didn't believe that our system promissed positive results
anyway.

I will expressly guarantee the accuracy of my product, and try to make sure that people understand that it is not a guarantee of results. What they believe is beyond my control.

  And it's not to say that we didn't also believe that it
did. Of course there was an implied promise! It just wasn't
actionable.

Understood.

Cheers.

Bill Velek

I'm side stepping the discussion about "product warranty" which I
consider a bit too esoteric for this group (at least for my sake)

Bill Velek wrote:

I agree with Jean Scott and other posters who have indicated that
"bankroll" is meant in the context of the long-term, except that the
idea of calculating any approximate amount under that circumstance
is pretty much useless; this is because 'the long-term' actually
means the rest of our lives, but we have no way of forseeing what
will happen along the way.

Bill, I think this is a short-sighted statement as it applies to a
moderately actively player.

The "long-term" typically is cited in reference to the amount of play
that's required for someone to have confidence of achieving an EV
that's within a given % of predicted EV (something like 99.9%, or
whatever ... I'm winging it this morning ... or within something like
.1% of ER).

It varies by the volatility and positive return of the game under
discussion, but is generally understood to be in excess of 1 million
hands ... yet typically the value cited isn't in excess of 5 million
hands.

These are large numbers but hardly out of the realm of a moderate
amount of active play.

···

------

I consider myself to be an "active" casual player. On a given weekend
I play through around 15K hands and probably manage 16 or so such
weekends in a given year. I also average a couple of weeks in LV
these days, averaging around another 40K each (or a little more).
That ballparks my annual play at around 300K hands per year. And this
doesn't include the modest amount of play that my wife adds on our
bankroll.

That gives me reasonable expectation that over the course of a decade
my results will approach "long term" results. For that reason, I give
considerable credibility to the concept of a "long term" bankroll.

I've come to know several other casual (or "recreational") players who
hit the casinos more frequently than I do and who are likely to well
exceed my play.

But I won't argue, Bill, that the guy who hits Vegas a single week out
of each year for some modest play may indeed fall short of "long-term"
play over the course of their life.

------

Yet I'll offer up one more thought for consideration. In the case of
those who blow through a stated "long term" bankroll, I fully expect
that they're likely to do so early on in their play rather than a long
way down the road.

Keep in mind that the bankroll concept only applies to a player who
consistently plays at an advantage (hopefully no less than .25% at
worse). That player can be expected to build a cushion against losses
the longer their play goes on and the likelihood that they'll bust
correspondingly reduces with time.

So, I'd suggest that the bankroll concept is largely focussed on a far
shorter time frame than is generally discussed.

------

Your focus, Bill, may indeed be more set on how much money you need to
see you through a trip. However, most of us reasonably has a limit on
the cumulative losses we're willing to bear relative to the balance of
our resources. If that limit (psychological bankroll) doesn't measure
up against the long-term bankroll requirements of the games you're
playing and you're an active player, there's a strong likelihood that
you're going to come up short down the road.

- Harry

I strongly disagree. The fact that the mathematical models involve
probabilities and uncertainty is NOT the same as saying they are
"approximate". The percentage EV for an extremely long series
of plays is numerically identical to the percentage EV for a SINGLE
play. In a very real mathematical sense, EV does not and cannot
distinguish between "long run" and "short run".

Some aspects probability theory do involve approximations. A good
example of this is most formulas for risk of ruin. When ROR formulae
are derived from EV and variance, they are approximate. However,
computation of max-EV strategies (or strategies that optimize something
else) do not require approximations of any kind.

Uncertainty and approximation are two entirely different concepts
which are not interchangeable. Of course, it is important to understand
the uncertain nature inherent in probability models, and that isn't
something that is easily condensed into a one-line describe of what
the max-EV strategy "does" for the player.

···

On Thursday 04 December 2003 01:47 am, lawrenceboxer wrote:

The mathematical models of ER and variance are, however, used by
players as if they are "products," which of course they are not, with
some kind of implied guarantee that they will lead to success, when
in fact they are merely approximations, if even that, and of
questionable value in short term play. That was the point of it.

The percentage EV for an extremely long series
of plays is numerically identical to the percentage EV for a SINGLE
play. In a very real mathematical sense, EV does not and cannot
distinguish between "long run" and "short run".

True, but the short term ER is not. It is virtually non-existent
short term since it is based on long term models. I didn't mention
EV. What you are saying is that there is a best choice for each
seperate hand and that the probabilities of success for each of those
individual seperate like hands remain constant. True. But a player
isn't +100.3% (as an example) throughout all play, even with perfect
EV choices every time. It takes time, and short of enough time, it's
variance that dictates much of the result.

Uncertainty and approximation are two entirely different concepts
which are not interchangeable.

I accept your correction. My use of the word approximation was a
poor choice. A level of uncertainty that amounts to virtually no
certainty is more accurate.

lb

> The percentage EV for an extremely long series
> of plays is numerically identical to the percentage EV for a SINGLE
> play. In a very real mathematical sense, EV does not and cannot
> distinguish between "long run" and "short run".

True, but the short term ER is not. It is virtually non-existent
short term since it is based on long term models.

I disagree. If a single player plays 100 million hands, then you'd
expect the frequency of payoffs to come pretty close to what the
VP programs compute. Similarly, if you have 100 million players
each play a single hand, the frequency of payoffs averaged over
these players would be the same. Yet, each player is playing
a very "short run" of one single game.

I didn't mention EV.

It makes no difference whether we're talking about EV or ER or
the complete probability distribution which describes the game
(as played by some chosen strategy).

What you are saying is that there is a best choice for each
seperate hand and that the probabilities of success for each of those
individual seperate like hands remain constant. True. But a player
isn't +100.3% (as an example) throughout all play, even with perfect
EV choices every time. It takes time, and short of enough time, it's
variance that dictates much of the result.

Yes, there are fluctuations. That comes with uncertainty and ANY
model that isn't deterministic. However, this has nothing to do
with any sort of approximation, and IMO short-term vs. long-term is
usually a meaningless distinction. As more games are played, we
expect the relative frequency of outcomes to grow closer to the exact
percentages predicted, but in an absolute sense the numbers become
less certain. If you play a single game, you know the number of payoffs
for "high pair" will either be zero or one. If you play 100 million games,
we might observe 21.3% of the outcome as "high pair" events, but the
absolute uncertainty in this value will be proportional to sqrt(100 million),
so the std. dev. in absolute terms has grown to something like 4600 units
for the "high pair" payoffs. So, as the number of trials grows, absolute
uncertainty increases while relative (percentage) uncertainty decreases.
Going from short term to long term just trades one form of uncertainty for
another, but in either case we are limited to how accurately we can pin
down the results.

> Uncertainty and approximation are two entirely different concepts
> which are not interchangeable.

I accept your correction. My use of the word approximation was a
poor choice. A level of uncertainty that amounts to virtually no
certainty is more accurate.

I think "virtually no certainty" is too extreme of a claim. If there was
absolutely no certainty at all, then you could make no meaningful
prediction about the outcome from a single round of play. However,
we actually have a great deal of information about the outcome --
the payoff from a single play will always be either zero or one of
the handful of possible payoffs allowed by the machine. It will
never be some fraction in between, and it will never be any of
the infinity of integer values that don't appear in the payoff schedule.
So, for a typical VP machine, we can predict that 25 or 50 units
may be returned, but never 26 or 49 or anything in between. That
much is in fact guaranteed. I understand your aversion to using that
word in connection with gambling, but we can predict with
complete certainty that an infinite number of payoffs will never
occur. Knowing which payoffs are possible, and knowing how
often those payoffs can be expected, is far removed from
"virtually no" information.

···

On Thursday 04 December 2003 06:31 pm, lawrenceboxer wrote: