The Mathematics of Gambling

by Edward O. Thorp

More than twenty years after the publication of Beat the Dealer, the best-selling book on winning at blackjack, Dr. Edward O. Thorp again focused his attention on gambling games with an analysis * BACCARAT -- Can card counting eliminate the house advantage? * BACKGAMMON -- Playing optimally in endgame situations. * BLACKJACK -- Understanding blackjack systems and detecting cheating. * GAMBLING GAMES -- Which ones you cannot beat and why. * MONEY MANAGEMENT -- How to maximize your return and what strategies to avoid. * ROULETTE and the WHEEL OF FORTUNE -- Using the laws of physics to predict the next winning number. In easy-to-understand language, learn what a leading mathematician discovered in thirty years of computer-assisted research. This is the long-awaited publication of Dr. Thorp's accumulated work on gambling. Before you risk your money, find out what the "Albert Einstein of Gambling" has to say!

Genres: Business, Mathematics, Nonfiction, Science, Finance, Self Help

161 pages, Paperback

First published November 1, 1984

About the author

Edward Oakley "Ed" Thorp (born 14 August 1932) is an American mathematics professor, author, hedge fund manager, and blackjack player best known as the "father of the wearable computer" after inventing the world's first wearable computer in 1961. He was a pioneer in modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain[citation needed].

He is the author of Beat the Dealer, the first book to mathematically prove, in 1962, that the house advantage in blackjack could be overcome by card counting. He also developed and applied effective hedge fund techniques in the financial markets, and collaborated with Claude Shannon in creating the first wearable computer.

Thorp received his Ph.D. in mathematics from the University of California, Los Angeles in 1958, and worked at the Massachusetts Institute of Technology (MIT) from 1959 to 1961. He was a professor of mathematics from 1961 to 1965 at New Mexico State University, and then joined the University of California, Irvine where he was a professor of mathematics from 1965 to 1977 and a professor of mathematics and finance from 1977 to 1982.

Reviews

[Kiril · Rating 4 out of 5]

key takeaways:
- if the probability is negative, don't bet
- no money management system can save you from negative expectation
- there's an optimal bet, in case you can calculate the probability of the outcomes

[Kevin · Rating 4 out of 5]

Very interesting analysis of a variety of casino games. Pioneering work done to calculate expected returns and attempt to beat the casinos.

[Carlos Jiménez · Rating 5 out of 5]

A clear and compelling read that shows how deep mathematics underlies games of chance. Thorp combines real-world casino settings with rigorous probability and strategy analysis, making this book ideal for anyone curious about the math behind gambling.

[S · Rating 4 out of 5]

worth the 75 pages printed in leavey