# Gambling Terminology

## Minimum bets in gambling games

Minimum bets are the smallest amounts of money that you can wager on a particular game. They vary between sportsbooks and casinos, but most gambling games have similar minimums. Regardless of what gambling game you’re playing, these minimums are important to know and understand. If you bet more than the minimum amount, you risk losing more than you’ve wagered. Therefore, be sure to read the terms and conditions before placing your bet.

Minimum bets are often set at a table in order to manage the number of players. These limits can be high or low, depending on the type of game. Higher minimum bets are often found in games with a lower house edge. Baccarat, for example, almost always has a high minimum bet. Some casinos also advertise lower minimum games as teasers. For example, you might find a table with a \$2 minimum bet and a six-to-five payout for blackjack.

## Probability ratios involved in gambling

Probability ratios are a key aspect of gambling. They are calculated by comparing favourable and unfavourable possibilities. For instance, the probability of hitting a seven in a seven-card stud poker hand is 1/6, while the probability of landing a head in a coin toss is 1/2. While these statistics are useful when comparing large numbers of events, they are insufficient for individual situations.

Probability theory has long been linked with chance games, but the principles behind it are used in many other areas of finance. Actuaries, for example, use probabilistic concepts to calculate stock values and insurance premiums. The example below shows how actuaries calculate the expected return on Stock A by considering various probabilities. In this case, the expected return on Stock A over a long period of time is 39.5%.