Your question, Pete, stems from layout confusion,
plus not knowing how the house does get its edge
in roulette.
What
you're missing is that the casino's advantage
of 5.26% in roulette comes from the presence of
the 0 and 00 on the layout. You admit to the belief
that the casino pays all wagers according to how
the odds would be if there were just 36 numbers
on the wheel. But It ain't so, my friend. Include
the 0 and 00, and add 'em up again. 38, right?
That's what pays the light bills. The true odds
of hitting your number are 1/38, yet winners are
paid only 35-1.
By
playing on a single-zero game, you can cut the
house edge in half; the house will still pay you
35-1, even though the true odds are improved for
you to 1/37.
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