An Analytic Derivation of Blackjack Win Rates

Gary Gottlieb
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Gary Gottlieb: New York University, New York, New York

Operations Research, 1985, vol. 33, issue 5, 971-988

Abstract: We study the win rate for the game of blackjack and derive a stochastic model for the advantage (i.e., expected win) process. Assuming proportional betting, we derive an explicit formula that estimates the win rate as a function of the number of decks used and the proportion of cards dealt before reshuffling. We derive a relationship between the “aggressiveness” of betting and risk. Risk is measured as the probability of wealth dropping below a specified level before it exceeds a higher, specified level.

Keywords: 362 continuous approximation; 720 stochastic model of blackjack (search for similar items in EconPapers)
Date: 1985
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:33:y:1985:i:5:p:971-988

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