Managing Your Money in a Casino

Setting a Budget and Sticking to It

To enjoy your gambling experience, you must control your gambling experience, which means setting — and sticking to — a budget. Whether you’re taking a weekend backpacking tour in a nearby state park or a once-in-a-lifetime trip to the Galapagos Islands, you decide what you’re willing — or can afford — to spend, and then you make your plans. The same goes for a gambling getaway. First you budget for the transportation to your destination, your hotel and food expenses, entertainment tickets, and sightseeing excursions — and how much you plan to spend on gambling.

If your main priority is to retain all of your money, the best advice we can offer you is not to gamble at all. Assuming you don’t want to hear that bit of wisdom, our next-best suggestion is to firmly decide, before you walk through the doors of the casino, how much you’re willing to spend (translation: lose).

Casinos are fantastic places where you can check reality at the door. Gambling should be a fun experience, a chance to get away from your daily stress and enjoy the escape that risk and winning can bring. But when the lines between reality and fantasy blur, when you buy into the dream and forget the budget, you can run into problems, and your money can quickly head south.

This section helps you predetermine exactly how much money you’re willing to spend on your gambling venture. You also discover how to stick to your budget and avoid the kind of fun the casino wants to have — at your expense.

Playing within your means

For most people, gambling isn’t a lifestyle. It’s an escape from reality that has the same components of thrill, sizzle, and excitement as other forms of entertainment — well, maybe a little less than skydiving and a bit more than the opera.

A good starting point to determine your gambling bankroll is figuring out how much you spend on different types of entertainments and vacations, such as theme parks, ski resorts, or other sightseeing destinations. Knowing this information can help you compare your casino budget to the cost of last summer’s beach vacation or that week in Paris.

Your gambling bankroll needs to reflect fiscal reality. If your other vacations cost $1,000, why should your gambling vacation cost two or three or even four times as much? Like all trips, hobbies, or flights of fancy, gambling is a form of entertainment. And, just like that Caribbean cruise, your gambling losses shouldn’t affect your day-to-day lifestyle or your ability to pay bills for the rest of the month, after the vacation is over.

As you calculate the cost of your gambling trip, consider its value to you in terms of fun and entertainment. If you perceive your casino gambling adventure as a form of entertainment similar to, say, dinner at a fine restaurant and an evening at the theater, you can begin to put a price on its value. Would such an evening cost you $500 for two? Possibly. Would you pay $1,000 for it? Possibly again, although sticker shock may be setting in.

Okay, we may sound like credit counselors, but the money for your gambling vacation should come from your entertainment budget. In other words, don’t cash in a savings bond, dip into the kids’ college funds, or take out a new credit card to bankroll the trip. And by all means, don’t budget with money you plan on winning during the trip!

Determining your daily limits

After you figure out your budget for your gambling adventure (whether a five-day trip to Vegas or just a quick jaunt to a riverboat casino), you need to break down that budget into how much you can spend each day. Take your predetermined trip bankroll, and then divide that amount by the number of days you’re going to be in the casino. For example, say you set aside $1,200 for gambling on your three-day getaway weekend. You have $400 to play with each day, separate from the money you budget to feed, house, and otherwise entertain yourself.

From day to day at the casino, you’re either up or down. For example, on Friday, the first day of your three-day venture, you enter the casino with four crisp $100 bills in your pocket and finish the day with $600 for a $200 win. Congratulations! But how does your success affect your game plan? It doesn’t. The next day, you should stick to your budget and still only gamble with $400. However, Saturday is a disaster and you lose every last penny of the $400 budgeted for that day. The carnage continues on Sunday, and once again you burn through $400. But because you stuck to your budget, you return home with $600 of your original $1,200 bankroll, which is a lot more money than less-disciplined gamblers (who never had a starting plan or failed to follow it) have at the end of their trip.

If you lose your $400 (or whatever the amount of your daily budget) early in the day, do something else. The free activities in and around casino towns can be pretty entertaining. Discover the mountain trails of Lake Tahoe, stroll the boardwalk in Atlantic City, or just hang out at the hotel and enjoy the swimming pool or workout room. A big mistake many people make is getting so engrossed in gambling that they miss out on the attractions of a beautiful resort.

Sizing up your bets

After splitting your bankroll into daily increments, the next step to budget your gambling is bet sizing, or breaking down your budgeted bankroll into the amount you allocate for each bet.

A general rule (for most table games) is to have a bankroll with at least 40 times the maximum bet you plan to make. So if you decide to ration your trip bankroll into daily allotments of $400, your betting units are $10 per hand. Proper proportional betting reduces your risk of tapping out (going home flat broke).

Keeping your bets consistent

Unless you’re a professional card counter, you don’t benefit from changing the amount of your bets. The simplest and safest strategy in most casino games is to bet the same amount each time. For slots and video poker, that may mean playing the max number of coins or credits each time if you are playing a progressive machine (see Book 6, Chapter 8 for more on slots).

Most players change the amount they bet on each play — typically increasing the bet size — because of two circumstances:

They’ve been losing, so now they’re desperately attempting to regain that money. Consequently, they steam, or increase the size of their bets.
They’ve been riding a hot streak and are playing on house money (funds they’ve won from the casino).

Although games do run in streaks, you can’t know when those streaks begin or end. After you have the money, it’s yours. How you obtained it doesn’t matter, but you still need to be judicious about how you spend or bet the money.

Limiting your losses

In addition to establishing a budget and portioning it out on a daily — and bet-size — basis, you can employ some simple strategies that help you stay within the framework of your budget. This section contains a few time-honored methods of limiting your losses.

Stop-loss limits: Covering your own butt

You may be familiar with stop-loss limits from the stock market. Stop-loss limits protect your shares from a severe downturn by instructing your broker to sell if a stock falls to a certain price.

You can apply the same rationale to gambling. An example is our earlier recommendation to decide in advance how much you’re willing to risk per trip and per day (see the section “Determining your daily limits”). When you lose your preset amount, stop, head for the door, and spend the rest of the day golfing or sightseeing.

Big comebacks — erasing your gambling debt by winning big — are the stuff of legends. And that’s where those stories belong. You’re not gambling in the casino to make a living or pay off your bills. Treat gambling like a vacation, and leave the dreams of making a fortune in the casino for Hollywood movies. (Check out “Resisting the urge to chase losses” in this chapter for more about how this strategy can get you in trouble.)

Time limits: Knowing when you’ve had enough

Another good restraint is to set limits on how long you play each day. Marathon sessions at the tables usually spell disaster. The longer you play, the more likely you are to lose your focus and perspective.

Don’t play for more than two hours at a time, and don’t go play for more than four to six total hours a day. Casinos are tough enough to beat anyway, but when you’re mentally foggy or hungry, you add an extra burden to the job.

Figure out how to take breaks because they can help you clear your head and protect your bankroll. Stopping for lunch or dinner may seem obvious, but the number of players who totally forget to eat when they’re gambling is amazing. Reasons to take breaks abound. Here are just a few:

Visiting the bathroom: Drink plenty of water so you have to take frequent trips to the powder room. Those short walks stretch both your legs and your bankroll.
Exercising: Even if it’s just a brisk walk around the casino floor, do something to get your circulation going. Even better is a real workout at the hotel gym.
Calling your loved ones: Your significant other and family appreciate a check-in call every once in a while. A check-in call can also provide additional restraints for sticking to your budget. You can easily lose touch with reality while gambling, and a quick phone call can remind you of what’s important in life.

Win limits: Winning something is better than losing

Everyone wants to walk away a winner. Cashing out a winner is one of the greatest feelings in the world, and it’s the ultimate goal of everyone who gambles. But remember — one of the worst feelings is dumping all your winnings back when you’re up a lot and then losing for the day. So quitting when you win a predetermined amount ensures that you have some winning days during your visit.

Some people set up target goals, such as quitting when they get ahead of their daily bankroll by 50 percent or 100 percent. If you wisely add your profits back into your bankroll (rather than spending them), you have a larger buffer to withstand future negative swings.

Keep in mind that quitting early never helps you in the long term because you have absolutely no way of knowing when the cards are going to turn for the day. But you reap a tremendous psychological benefit if you stop playing when you win a certain amount.

Looking at Casino Credit and Its Risks

Most people feel safer using credit cards rather than cash on vacation because, if stolen, credit is easier to replace than cash. But you have to turn that strategy on its head on gambling vacations. If you want to play it safe when gambling, always use cash instead of credit.

The more credit you use (or perhaps abuse), the more you have to replace when you get home. For example, if you set a personal loss limit of $400 and blow your $400 in cash, stopping is easier because you’re out of money. But with a $2,000 credit line, after you burn through the first $400, you can still tap into more funds, which can ultimately lead to serious debt trouble.

This section explains the downside of relying on casino credit. But there are also some advantages to casino credit, so we explain how to set it up and when to use that credit in a positive way.

Grasping casino credit

To understand the lure — as well as the danger — of casino credit, you first need to understand it. Casino credit is no different from store credit, something most people take advantage of every day. To make shopping easier, many department stores offer customers a little plastic card with a line of credit. Similarly, the casino offers you a line of credit based on your credit report and the size of your bank account. This line of credit allows you to borrow money from the casino in order to gamble — either because your funds have run out or because you just prefer not to carry cash.

The whole casino industry is designed to make you forget that you’re playing for real money, which is why casinos use chips rather than cash at the tables. And taking the next step — playing against your line of credit — can move you one step further from the harsh reality that eventually you have to pay the piper.

Credit is convenient, yes. But, it’s also a very risky venture. First, access to credit tends to make some people spend more money than they otherwise would — both in gambling and in the real world. But with casino credit, the problem is compounded. If you buy a $300 sander from the local home-improvement center on your credit card and your spouse promptly persuades you that you don’t need that item, you can usually return it and get your $300 back. But when you borrow $300 from your favorite casino and lose it at craps, it’s long gone. Even worse is when you lose that $300, followed quickly by $600 more, and return home with bigger debts than you can handle.

Definitely steer clear of casino credit if you have an impulsive nature. Can’t stop eating potato chips until the bag is empty? Then casino credit may be another bag you don’t want to dip into.

Crediting yourself with an account

Recognizing that borrowing from the casino can lead to gambling debt is a critical step as you consider managing your bankroll. Yet credit can benefit people who are extremely disciplined inside the surrealistic confines of the casino. And casino credit does offer the following clear advantages:

Makes you a prime target for attractive comps (free meals and entertainment, for example)
May lead to invitations to big casino events
Allows you to cash personal checks at the casino cage instead of using the ATM or borrowing on your credit card, which can result in additional service fees
Allows you to gamble without the risk of carrying large amounts of cash

Establishing a line of credit is easier than you may think because the casino doesn’t want to make borrowing money hard for you. You can set up a casino line of credit in one of two ways:

At the cashier’s cage upon arrival
Online prior to your visit

Because credit approval may take a few days, visit your preferred casino’s website and fill out an application form in advance. That way your line of credit is available to you as soon as you arrive.

Using markers against casino credit

After you establish your line of credit, don’t expect to get a plastic credit card with the casino logo on the front. Instead, you use markers at the tables to tap into your line of credit. (A marker is basically a check or I.O.U. that you sign at the gaming table.)

Keep this fact in mind as you sign a marker for that next baccarat game: Chips and now markers serve as tools to distance you psychologically from the reality that you’re spending your hard-earned money. And when you don’t have to reach into your wallet when you’re losing, continuing to play is a whole lot easier. If you choose to ignore our advice about sticking to cash while gambling, then be sure you’re constantly aware of where you stand with the house, and never lose sight of the fact that payback will occur before the end of your casino stay.

At the end of your visit, the casino expects you to write a check to cover the cost of any losses you incurred during your visit. If you refuse to pay, the casino has the right to post the outstanding markers with your bank for collection from your account.

You use markers only after you’ve established a line of credit with the casino. And a line of credit is good only at the casino where you applied. In other words, you can’t borrow money at the club across the street unless the same company owns both casinos.

Figuring Out When Enough Is Enough

Gambling, by its very definition, implies risk, something many people aren’t used to dealing with. In your work life, you eliminate uncertainty by accepting a job with a fixed salary. In your daily life, you protect against disaster through a spectrum of safety precautions, from smoke detectors to seat belts.

When you walk into the casino, the house is betting that your unfamiliarity with risk will work in its favor. (Look at how easy establishing a line of credit is and how quickly the little extras, such as comps, make you amenable to spending and risking more money.)

By following the advice in this chapter, you’re taking the appropriate steps to reduce your risk of gambling-related problems when you enter the casino. But you’re wise to continue looking for signs of trouble during, or even before, your casino visit. These problems can take many forms beyond simple financial issues; they can affect your relationships as well as your health. This section helps you identify the warning signs so you can walk away before it’s too late.

Knowing the odds of failure

The best protection you can offer yourself in a casino is knowledge. Having a full understanding of the odds involved with every game allows you to set realistic limits in your play. You can know when pushing a little harder and continuing to play is okay, but you can also have a solid grasp on when it’s time to tuck your tail between your legs and go home. Without a basic understanding of your chances, you won’t be able to recognize when you’ve taken one step too far.

Because the casino does everything in its power to help you step off the plank and into the ocean of risk, is it any wonder some people get in over their heads before they even realize they’re in deep water? Book 6, Chapter 2 looks more closely at odds, and each chapter on the specific games examines the odds and explains whether the game is worth playing or not.

Knowing thyself

You may have packed light for your long-weekend gambling getaway. But, trust us, you’re carrying more baggage than you realize — all that other stuff that defines who you are and how you react to certain situations. So be realistic about your own personality and temperament.

If you tend to get a little out of control when things go wrong, then bring along some safeguards in the event you start to lose. Have a friend hold your wallet, or simply leave access to money (beyond your bankroll) behind and carry nothing but cash. Above all else, be honest about how you’ve gambled in the past. Just because you haven’t been a perfect angel doesn’t mean you can’t go, but you do have to be more careful than other gamblers.

Are you a disciplined type? Is adopting positive behaviors, such as daily exercise and saving money, easy for you? If you’re cool, calm, and rational in your daily life, you’re likely to be a good candidate for video poker or the blackjack tables. Or are you impulsive and undisciplined? Does a trip to the mall for a package of socks turn into a shopping spree that sets you back a couple of paychecks? Do you struggle to stick to a diet? If you lack control in everyday activities, such as shopping and eating, then casinos can become a dangerous diversion. We’re not suggesting that you swear off casino visits if you can’t stop yourself from eating just one more chocolate chip cookie. But understanding your nature and taking precautions to protect yourself from “cleaning out the cookie jar” is important.

If you choose to partake in the pleasures and excitement of a casino visit, then, in addition to strictly following the money-management advice in this chapter, you may want to take extra steps to curtail your impulsive side. For example, try traveling with someone who’s more disciplined than you are and willing to serve as the designated banker.

Resisting the urge to chase losses

Even if you’re a highly disciplined soul, the hypnotic sway of the casino can seduce you into uncharacteristic behavior. One typical lure that pulls gamblers off the cliff of control is chasing your losses. For example, say you’ve lost more than you intended. But, you think, if you could just win one big bet, your problem would be erased. So chasing your losses is tempting, especially in a casino where people seem to be winning all around you.

The sad fact is that most people lose when gambling. And when people lose, they tend to want to get their money back. Even though it’s almost always a quick path to ruin, the urge to chase losses is a phenomenon that seems to sweep over casinos from the Mississippi River to Monte Carlo.

Don’t fall victim to chasing your losses! When you seek to retrieve that lost money, you start throwing good money after bad, hoping to win it all back. To avoid losing even more of your gambling bankroll, treat a loss as just that: a loss. Say no to the next hand or play, and say yes to some other activity.

Sipping, not sinking

Part of the casino experience is enjoying the festive atmosphere, bright lights, and free drinks. But enjoying and exceeding are two different events, and the quickest way to short-circuit your budget is to overindulge at the bar.

Overindulging is tempting, of course, with cocktail servers adeptly appearing just when the game gets tense, graciously slipping a fresh cold drink next to your elbow. As you sweat a little more, the next drink goes down more quickly. And before you know it, you’ve lost count of how many drinks you’ve had, not to mention how much money you’ve lost.

Monitor your drinking as closely as you manage your budget. If your game of choice requires strategy, then you play better with a clear head. And even if the game doesn’t require player expertise, you’re still better off without the excessive alcohol muddying your thoughts or encouraging you to go for broke when you’re in the hole.

Recognizing a gambling addiction

Exceeding your established gambling budget by a few hundred dollars on a trip to Vegas or your nearby riverboat casino is one matter. Getting yourself tens of thousands of dollars in debt over the course of time is another matter entirely; this sort of trouble is a serious gambling problem. Gambling addiction is a complex problem far beyond the scope of this book. But we’d be irresponsible not to address it in a chapter about managing your gambling money.

Gambling debts almost ruined Edgar Allan Poe and Thomas Jefferson and have devastated many families. Whether you’re a beginning gambler, an occasional gambler, or a regular bettor, you need to know the signs of gambling addiction. A few signs include

Trying to escape other problems in your life by gambling
Lying to others about the frequency or amount of your gambling
Falling behind on basic payments, such as rent or other bills, to feed your gambling habit
Asking to borrow money from friends and family to cover your gambling debts

If you suspect you have a serious problem with gambling, you’re not alone. Some excellent sources and support groups are available to help you fight your addiction and find ways to overcome debt and other related problems. You can start with an excellent website, www.gamblersanonymous.org, for answers and help.