Quote from: dooglus on August 29, 2014, 12:27:59 AM

Quote from: galbros on August 28, 2014, 09:21:27 PM

Wasn't satoshidice like a 1.6% edge or something?

Why do people talk about it like it's dead? It's probably just pining for the fjords.

The edge at satoshidice is 1.9%.

I think evorhees once said that it wasn't possible to run a profitable site with a 1% edge, and so set the satoshidice edge to 2%, and dropped it to 1.9% in response to competition (from btcdice.com maybe?) offering a slightly lower edge. He said he had the resources to keep dropping the SD edge and kill any competition, but it didn't play out like that.

Quote from: galbros on August 28, 2014, 09:21:27 PM

I think off block chain dice games seem to have clustered around 1% but I keep expecting to see .88% or .5% but I don't. I see the new PD3 is at .91% due to its jackpot feature.

For the longest time there seemed to be an unspoken agreement that 1% was the edge for offchain dice sites. I was curious when PD dropped their edge to 0.91% whether it would lead to a price war, resulting in a race to the bottom but apparently nobody cares. Dice players don't seem to care whether they are getting a 0.91% or 1% edge. Volume at PrimeDice's recently launched "PD3" site, with exciting new features (levels, achievements, player-vs-player, a faucet) has been matched very closely by that at dicebitco.in (no new features, 1% edge, no faucet), so I guess giving up almost 10% of expected profit is a losing move by PD that won't last too long.

Another issue preventing any credible competition from appearing with a lower edge is the need for a bankroll. It seems to be accepted knowledge that in order to offer bets with a 1% edge you need to have about 200 times the maximum win in your bankroll. The smaller the edge, the bigger that multiplier. To offer a 0.5% edge, you need 400 times the maximum win per bet in your bankroll. When the established sites are offering around 20 BTC wins per roll that means you need a 8000 BTC bankroll to offer 0.5% edge bets, and that's a lot of money. If you're trying to crowd-fund such a bankroll you're going to have a hard time - who wants to invest in a site with a low edge when you can just as easily invest in one with a full 1% edge...

And so we're left with 1% sites for the most part. We see sites like 999dice with a 0.1% edge, but that's hard to take seriously. When challenged to prove that they are bankrolled to offer such bets they refuse, and so can't really be taken seriously.

Your rank is on par with your posts. Thank you.