How is hold percentage defined in casino operations?

How is hold percentage defined in casino operations?

• A. Drop minus payouts.
• B. Payouts minus drop.
• C. Drop divided by payouts.
• D. Payout divided by drop minus hold.

Answer: (A)

The key idea is what the casino keeps from the money players exchange. Hold represents the amount the house retains after paying out winnings, which is found by subtracting the payouts from the drop. If you were turning that into a percentage, you’d take that difference and divide by the drop, giving (drop − payouts) / drop. The other expressions mix the terms incorrectly or produce negative or meaningless results, so the straightforward definition of hold as drop minus payouts best fits.

The key idea is what the casino keeps from the money players exchange. Hold represents the amount the house retains after paying out winnings, which is found by subtracting the payouts from the drop. If you were turning that into a percentage, you’d take that difference and divide by the drop, giving (drop − payouts) / drop. The other expressions mix the terms incorrectly or produce negative or meaningless results, so the straightforward definition of hold as drop minus payouts best fits.