Hold percentage is calculated as which formula, and what does it indicate?

Hold percentage is calculated as which formula, and what does it indicate?

• A. Hold percentage = casino win divided by total amount wagered.
• B. Hold percentage = total amount wagered divided by casino win.
• C. Hold percentage = casino win plus total amount wagered.
• D. Hold percentage = casino win minus total amount wagered.

Answer: (B)

The concept here is how the volume of player wagering relates to the house’s winnings. In this framing, hold percentage is defined as total amount wagered divided by casino win. That means it shows how much wagering activity there is for each dollar of win the house keeps. A larger value indicates more turnover relative to win, signaling that players are wagering a lot for relatively little win collected by the casino. The other formulations either invert the ratio, which would swap the interpretation to how many dollars of win come from each dollar of handle, or involve adding or subtracting the figures, which doesn’t measure the relationship between wagering volume and casino win. Therefore, this option is the best representation of hold percentage in this context.

The concept here is how the volume of player wagering relates to the house’s winnings. In this framing, hold percentage is defined as total amount wagered divided by casino win. That means it shows how much wagering activity there is for each dollar of win the house keeps. A larger value indicates more turnover relative to win, signaling that players are wagering a lot for relatively little win collected by the casino. The other formulations either invert the ratio, which would swap the interpretation to how many dollars of win come from each dollar of handle, or involve adding or subtracting the figures, which doesn’t measure the relationship between wagering volume and casino win. Therefore, this option is the best representation of hold percentage in this context.