Casino Bankroll Management - How to Manage Funds Effectively

Casino bankroll management is one of the most essential tools in any gambler’s arsenal. As professional gambler and WSOP champion, Chris Ferguson wisely stated, “Take care of your bankroll, and your bankroll will take care of you.”

This emphasizes that managing your funds properly is crucial for achieving long-term success in gambling. Here, we cover the meaning of bankroll management, the factors you need to consider, such as house edge and odds, and how to craft a strategy tailored to your means and goals.

What Is Bankroll Management?

Casino bankroll management is all about setting clear limits on the amount of money you want to spend while gambling. By allocating your funds strategically, you protect yourself from huge financial losses and actually boost your chances of winning.

Proper bankroll management helps players recoup their losses, making the whole experience more enjoyable or at least less frustrating. Frustration usually leads to impulsive decision-making, and things can only go downhill from there.

How Does Cash Bankroll Management Work?

Devising a casino bankroll strategy means you only play with what you can afford to lose, but it’s also about establishing a betting unit. This is done per round, according to specific mathematical formulas, the type of game being played, and the player’s own goals and preferences.

Casino Bankroll Management Differs from Game to Game

When planning your bankroll, casino games such as slots, for example, require a more careful approach to bet sizing compared to the slower pace of table games like poker or blackjack.

But the game pace is just one of many factors to take into consideration. You also need to look out for the house edge, how volatile the game is, whether it’s skill or luck-based, and more. All these vary from game to game and should influence your bankroll management strategy.

Is There a Recommended Amount to Bet?

What is a bankroll in gambling and how can one be established? As a rookie, it’s wise to start out with smaller rather than large bets compared to your total bankroll. This is also how you extend your playtime and minimize risk.

Small bets safeguard you from the high volatility and unpredictability of casino games, especially in the case of slots. Starting small gives you the flexibility to adapt and respond to the game’s flow without taking unnecessary risks right from the bat.

With all that in mind, there isn’t a one-size-fits-all approach. You design your budget guided by the amount you can afford to lose, and your bet size according to the game and strategy at hand. A good rule of thumb is to make the bet size in the 1%-5% range of your total bankroll.

Gambling Bankroll Management: Why is it Important?

Casino bankroll management is arguably as important as knowing the rules of the game you’re playing. By setting limits on how much you’re willing to bet, you protect yourself from the temptation to chase losses, one of the more challenging pitfalls of gambling addiction.

Furthermore, many useful strategies rely on effective bankroll management. It’s much easier to stay clear-headed during the game when your losses aren’t disastrous, and you’re also more likely to recoup the losses if you use your budget wisely.

Bankroll Management at Online Casinos: The Basics

So, you’ve found the perfect online casino and want to start online gambling. In order to have an exciting experience but still play responsibly, you need to get a hang of the basics first. Here are some bankroll tips.

The Rules of Luck & Strategy

Whenever you gamble at a casino game, luck and strategy each play a role. The amount of luck involved in whether you win or lose can differ greatly between games and types of bets, but it’s always involved.

Games such as slots and roulette are very heavily luck-based. While betting strategies can be used, they do not affect the house edge, and the casino will always win in the long run. However, there’s still a probability you can still win.

Other games like blackjack and poker involve luck in the cards you are dealt. However, you can statistically improve your chances of winning and lower the house edge by learning and implementing strategies for how you play those cards.

Learn About the Game’s Variance

Variance describes the frequency and size of payouts. For high-variance games, you’ll need a larger bankroll to withstand the long stretches without winning, but when you win, you win big.

With low-variance games you’ll need a smaller bankroll since you’re more likely to win often, although small amounts.

Understanding House Edge and RTP

The house edge is a percentage representing the casino’s average profit from a player’s bet, while RTP is the percentage the casino players stand to gain by playing at the casino in the long run. These metrics indicate the game’s fairness and the likelihood that you get paid.

However, it’s important to note that a high RTP or a low house edge doesn’t necessarily guarantee high odds of victory. Some bets will tempt you with a risky bet where you stand to win big, but not even a 0% house edge can be a reliable indicator in these scenarios.

Use Betting Units

A betting unit is a set amount of money that represents a single wager in your betting strategy. A typical and sensible unit is around 1-3% of your total bankroll but can be slightly higher in certain situations and certain games. Betting units help you control your betting more effectively and also simplify tracking your wins and losses.

Find an Appropriate Bonus

Although it can be incredibly tempting to claim the first big bonus you come across, to practice good money management, it’s important to consider the terms and conditions. For example, let’s say that there are two bonuses available at an online site: One is a 100% bonus of up to $200, and the other is a 200% up to $200. Automatically, you’d think that the latter is the better option.

However, let’s say that the first bonus comes with a wagering requirement of 10x the bonus and deposit, whereas the other has a requirement of 30x the bonus and deposit. Sure, the second bonus looks more appealing because of the higher deposit match, but if you deposit $20, you’ll need to wager $1,800 to meet the requirements. This is because you’ll receive a $40 bonus for your deposit.

Add that bonus to your deposit of $20 and your requirement is $60 x 30, which is $1,800. Compare this to the wagering requirement of just $400 with the first bonus, and it’s easy to see which one costs less in the long run.

Learn How to Play Responsibly

Gambling bankroll management is not merely a strategy to prolong your gameplay; it’s a necessary principle of responsible gaming. It’s important to be aware of how much you’re spending when gambling online, as well as how gambling affects your well-being.

It’s incredibly important to gamble responsibly and to seek help for gambling-related issues. If your gambling has started to feel stressful, overwhelming, and out of control rather than a fun pastime, it’s paramount that you seek help from a trusted source.

Joe Yarnold
Casino & Betting Expert

Expert Insight

With low volatility and skill-based games like blackjack, a good betting unit for newer gamblers is 1-2% but an experienced bettor can increase their betting unit up to 5%. However, with high-volatility games such as slots and roulette, your unit should not be above 3%, and less experienced gamblers should aim for 0.5-2% for these types of games.

Use Betting Systems Sparingly

Betting systems don’t guarantee wins, and while they definitely provide structure to your betting, relying on them heavily may lead to disappointment. Most betting systems cannot make up for the house edge, meaning you will always risk more than you stand to win. Any bankroll management casino expert worth their salt will tell you not to put too much stock in betting systems.

Avoid Betting When Under the Influence

Betting under the influence can result in impulsive decisions that you wouldn’t usually make sober. It’s never recommended to place real money bets while drinking, as you could wake up the next day and find yourself in some deep financial trouble.

Avoid Chasing Losses

Losing streaks are a part of a gambler’s life. However, chasing losses or trying to win back what you’ve already lost is a risky strategy that often leads to even bigger losses. It’s important to resist this impulse and accept losses as part of the gambling experience.

Beware of Progressive Betting

This strategy can quickly deplete your bankroll gambling funds, turning a manageable loss into a significant one. Sticking to your original bankroll management gambling plan when playing games and avoiding letting the desire to recoup losses dictate your actions.

Make a Gambling Budget

Set aside a specific amount of money for gambling—the gambling funds that you’re comfortable with, that you can effectively manage, and most importantly, that you can afford to lose. Bankroll management when betting with Bitcoin is vital if you’re not used to playing with cryptocurrencies because of their volatility.

Track Your Spending

Although there is no particular single best bankroll management strategy, tracking your wins and losses not only helps you stay within your budget but also provides valuable insights into your gambling patterns. This practice keeps you aware of the money spent and your habits, too.

Which Casino Betting Strategy Should You Use?

Your approach to choosing the right betting strategy, besides prioritizing cash bankroll management, should also align with what feels comfortable and the types of games that you want to play.

Flat Betting

By setting fixed betting limits, you can easily calculate how much you’re willing to spend during a session and stick to it. Flat betting encourages discipline and minimizes the emotional decision-making often prompted by the highs of winning streaks and the lows of losing ones.

Percentage Betting

With percentage betting, you adjust your bet size based on a fixed percentage of your current bankroll. This method ensures that your bets scale appropriately with your wins and losses. As your bankroll increases, so do your bet sizes, and vice versa.

For example, if you have a $200 bankroll management budget, you can decide to place a bet of 10% of the budget, which is $20. After a win, your entire bankroll might rise to $300, in which case, you can choose to bet with $30.

Confidence Model

With this strategy, you adjust your bet sizes based on how confident you feel about the likelihood of winning a particular game or bet. The inherently random nature of gambling makes this tactic less than ideal; your confidence won’t always align with the odds.

However, if you are feeling good about raising your bet, wait for the right moment. Try to spot that elusive moment when you feel like the pattern is about to change and up your bet.

When you play slots online, you should be aware that slot machines are completely RNG-based. If you do decide to bet big on a hunch, it’s probable that your confidence will lead you astray.

The Kelly Criteria

A sophisticated betting strategy, the Kelly Criteria calculates the optimal amount of your bankroll to bet based on your perceived chance of winning. Essentially, it helps you determine how much to wager on a given bet to achieve the best balance between risk and reward.

Here’s how to estimate the stake size:

Multiply the likelihood of winning by the odds of the event
Take the number you get from the first step and subtract the probability of losing
Take the number from the second step and divide it by the odds

A good way to determine your chances is to choose games that have a demo mode. There are many online casinos that feature free casino games that will let you sample the gameplay and see what you stand to win without having to invest a penny.

The Ferguson Rules

Developed by Chris Ferguson, a professional poker player, the Ferguson Rules are aimed at managing gambling funds with an emphasis on poker bankroll management strategy. Here’s what they involve:

Don’t get into a cash game where the buy-in exceeds 5% of your bankroll
Don’t join a multi-player table where the buy-in exceeds 2% of your bankroll
If the money you won at the table exceeds 10% of your bankroll, cash out when the blind reaches you.

Stop Loss technique

Stop Loss Technique

The Stop Loss technique involves setting a predetermined limit on how much you’re willing to lose on cash games before you begin playing. Once you reach this limit, you stop gambling for the session. This technique helps maintain discipline and control over your gambling habits. When using this technique, you need to pick table limits that allow you to place low bets if needed.

The Martingale System

Ever used the coin toss to settle a bet? Imagine doubling your bet each time the coin lands on the wrong side. That’s what the Martingale System is, in the simplest of terms. The goal is to double your bets in hopes of recovering all your losses in a single win.

However, this approach is quite risky as it requires quite a handsome bankroll. It’s a high-risk strategy that is definitely not beginner-friendly due to the financial commitment it demands.

Potential Return Model

In this strategy, you’ll make wagers based on the potential return rather than the initial stake. Most people decide on the stake when placing bets and then work out the return, but the reverse is true in this model. You work out your desired return and then divide it by the odds -1.

The upside of this strategy is that it allows you to place lower stakes on higher odds bets rather than sticking rigidly to a single betting unit amount. However, for low-odds bets, you’ll have to up the stakes, and depending on how many different bets you are going to be placing, it can involve a lot of calculations and the use of a bankroll management calculator.

Pros and Cons of Having a Bankroll Management Strategy

There are many advantages to having a bankroll management strategy, but there are also a couple of downsides.

Pros:

A casino bankroll strategy improves financial control
Increasing the amount of time the player can play
Reduced risk of big losses once you start playing
Heightened discipline and moderation when betting
Peace of mind and emotional regulation

Cons:

Difficult to establish discipline and patience
Can potentially limit big wins

The Psychological Edge: Mastering the Mental Game of Gambling

A strong mental approach helps maintain focus, discipline, and patience, which are key to making informed decisions at the table or slot machine. When you’re mentally prepared, you can avoid impulsive bets, recognize profitable opportunities, and stick to your strategy even when your emotions run high.

One of the most common missteps gamblers make, especially less experienced ones, is chasing losses. This leads to poor decisions and reckless bets, and people often abandon their preplanned strategy and let their emotions take control. A mentally prepared player knows when to step away and recognizes that it’s a marathon and not a sprint.

In essence, the mental game of gambling is about cultivating a mindset that prioritizes strategic thinking and emotional control. Remaining calm and clear-headed, with an iron-clad poker face, will boost your experience. Bankroll management helps cultivate a good mental approach to gambling, but it is just part of it, and you must be mentally strong to stick to your plans.

Our Final Thoughts on Casino Bankroll Management

Using a bankroll management system is essential for gamblers. While it won’t change the house edge, it gives you the best chance of long-term profitability and helps you stay in control of your gambling habits. Proper bankroll management enhances your experience and ensures you play safely and responsibly.

There is no one single “best bankroll management strategy” for every player and effective strategy involves considering your available betting funds, the odds and house edge of the games you wish to play, deciding on a betting strategy (if any), determining how often you’ll play, and setting limits on your session frequency and duration.

FAQ

What is the best way to stay within my bankroll limits?

How do I determine my bankroll size?

How often should I adjust my bet size?

Is bankroll management only meant for professional gamblers?

Is it possible to succeed without managing your bankroll?

There’s no telling when you’ll hit a lucky streak. However, we again stress just how much effective bankroll management helps not only in terms of your potential wins but also your health and general well-being.

Resources

Pride Kazunga
iGaming Expert

Pride is a iGaming expert writer with over 10 years of experience. He joined ReadWrite in 2024 as a casino content specialist, with a simple, relatable, and easy-to-read writing style. He loves staying up to date with the latest industry trends, providing readers with the most actionable insights. Pride is featured on multiple publications including TheGameDayCasino.com, BestOdds.com, UsOnlineCasino.com and PACasino.com.

All Posts by Pride Kazunga

Maximizing Your Casino Wins – A Guide to Bankroll Management