Background
As you may be aware, a user on SatoshiDice had a BIG win recently.
On January 11, 2017, Underdog01253 (user ID 2789717) placed a bet of 0.25 BTC and won a x1215.92 multiplier to walk away with a whopping 303.73 BTC.
This bet was placed on SatoshiSlot which shares the same bankroll as SatoshiDice.
Here's the scam
SatoshiDice claims they employ the Kelly criterion to limit the maximum profit to 1.9% per bet.
How did they allow this user to win ~14% of the bankroll in a single bet?
"Here's the scam": Your quote about the Kelly criterion to limit the maximum profit to 1.9% per bet is in regards to Satoshi Dice only.As you may be aware, a user on SatoshiDice had a BIG win recently.
On January 11, 2017, Underdog01253 (user ID 2789717) placed a bet of 0.25 BTC and won a x1215.92 multiplier to walk away with a whopping 303.73 BTC.
This bet was placed on SatoshiSlot which shares the same bankroll as SatoshiDice.
Here's the scam
SatoshiDice claims they employ the Kelly criterion to limit the maximum profit to 1.9% per bet.
Quote from: www.satoshidice.com
Satoshi Dice keeps the maximum profit a player can make on a bet to 1.9% of the bankroll (employing the Kelly criterion).
How did they allow this user to win ~14% of the bankroll in a single bet?
There are no terms and conditions in regards to Satoshi Slots, therefore a slot player can win whatever he likes.
The criminal offense is to reduce this 303 BTC slot win from investor balances!
Did they meanwhile put the Satoshi Slot loss reduction back to your investor balance?