Warning: Don't believe this analysis. The results from actual gambling don't seem to match up (the player loses over time). I don't know why.

Port Royale Gambling Odds

The strategy game Port Royale has a gambling game you can play in the inns. I wondered what the odds are, so I wrote a little program to calculate them.

Except for a bug in the game, the game is weighed in the house's favor, as the player can expect to win 0.91 GC for every 1 GC wagered. But there's a bug that puts the odds squarely in the player's favor. More on the bug below.

Rules

The game rules are: You make your bet, then roll 5 dice. If you did not make a winning roll, you may choose to double your bet. In any case, you must now pick any, all or none of the dice to keep and roll the rest. The house then pays.

The winning rolls are:

Five of a kind3
Four of a kind2
Three of a kind1
Straight (the game calls this a "flush")2
Full house2

Your best strategy (if there's no bug)

Initial Hand What to keep Double?
One pair Keep the pair and roll 3 Yes
Two Pair Keep the two pair and roll 1 No
Inside Straight with pair Keep the pair and roll 3 No
Inside Straight with no pair Roll all five No
Outside Straight Keep outside straight and roll 1 No
Three of a kind Keep the 3 of a kind and roll 2 n/a
Full House Keep everything and roll 0 n/a
Straight (aka "flush") Keep everything and roll 0 n/a
Four of a kind Keep the four of a kind and roll 1 n/a
Five of a kind Keep everything and roll 0 n/a

The Doubling Bug

There's a bug in the game, at least with version 1,4,0,3. When you double and win, the computer pays you without first subtracting your extra bet. The payout on a doubled bet that you win is, in effect *3 rather than *2. That bug changes everything! The player can now expect to receive 1.36 GC for every 1 GC wagered.

Your best strategy (considering the bug)

Initial Hand What to keep Double?
One pair Keep the pair and roll 3 Yes
Two Pair Keep the two pair and roll 1 Yes
Inside Straight with pair Keep the pair and roll 3 Yes
Inside Straight with no pair Roll 1 No
Outside Straight Keep outside straight and roll 1 Yes
Three of a kind Keep the 3 of a kind and roll 2 n/a
Full House Keep everything and roll 0 n/a
Straight (aka "flush") Keep everything and roll 0 n/a
Four of a kind Keep the four of a kind and roll 1 n/a
Five of a kind Keep everything and roll 0 n/a

The program

The program that calculated all this is portroyalegambling.rb.

The program's output (doubling bug enabled)

one pair: probability = 0.24691
  After rolling 3:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.194444444    0  0.0000  -0.1944  one pair
    0.277777778    0  0.0000  -0.2778  two pair
    0.004629630    3  0.0139   0.0417  five of a kind
    0.092592593    2  0.1852   0.5556  full house
    0.083333333    0  0.0000  -0.0833  inside straight (with pair)
    0.069444444    2  0.1389   0.4167  four of a kind
    0.277777778    1  0.2778   0.8333  three of a kind
    1.000000000    0  0.6157   1.2917  TOTALS
  Player should double
  Payoff = 0.3189300412 (0.2469135802 * 1.291666667)
two pair: probability = 0.23148
  After rolling 1:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.666666667    0  0.0000  -0.6667  two pair
    0.333333333    2  0.6667   2.0000  full house
    1.000000000    0  0.6667   1.3333  TOTALS
  Player should double
  Payoff = 0.3086419753 (0.2314814815 * 1.333333333)
inside straight (with pair): probability = 0.18519
  After rolling 3:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.194444444    0  0.0000  -0.1944  one pair
    0.277777778    0  0.0000  -0.2778  two pair
    0.004629630    3  0.0139   0.0417  five of a kind
    0.092592593    2  0.1852   0.5556  full house
    0.083333333    0  0.0000  -0.0833  inside straight (with pair)
    0.069444444    2  0.1389   0.4167  four of a kind
    0.277777778    1  0.2778   0.8333  three of a kind
    1.000000000    0  0.6157   1.2917  TOTALS
  Player should double
  Payoff = 0.2391975309 (0.1851851852 * 1.291666667)
three of a kind: probability = 0.15432
  After rolling 2:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.027777778    3  0.0833   0.0000  five of a kind
    0.138888889    2  0.2778   0.0000  full house
    0.277777778    2  0.5556   0.0000  four of a kind
    0.555555556    1  0.5556   0.0000  three of a kind
    1.000000000    0  1.4722   0.0000  TOTALS
  Player can't double
  Payoff = 0.2271947874 (0.1543209877 * 1.472222222)
inside straight (no pair): probability = 0.06173
  After rolling 1:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.166666667    0  0.0000  -0.1667  inside straight (no pair)
    0.166666667    2  0.3333   1.0000  straight
    0.666666667    0  0.0000  -0.6667  inside straight (with pair)
    1.000000000    0  0.3333   0.1667  TOTALS
  Player should not double
  Payoff = 0.02057613169 (0.06172839506 * 0.3333333333)
full house: probability = 0.03858
  After rolling 0:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    1.000000000    2  2.0000   0.0000  full house
    1.000000000    0  2.0000   0.0000  TOTALS
  Player can't double
  Payoff = 0.07716049383 (0.03858024691 * 2.0)
straight: probability = 0.03086
  After rolling 0:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    1.000000000    2  2.0000   0.0000  straight
    1.000000000    0  2.0000   0.0000  TOTALS
  Player can't double
  Payoff = 0.06172839506 (0.03086419753 * 2.0)
outside straight: probability = 0.03086
  After rolling 1:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    0.333333333    2  0.6667   2.0000  straight
    0.666666667    0  0.0000  -0.6667  outside straight
    1.000000000    0  0.6667   1.3333  TOTALS
  Player should double
  Payoff = 0.04115226337 (0.03086419753 * 1.333333333)
four of a kind: probability = 0.01929
  After rolling 0:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    1.000000000    3  3.0000   0.0000  five of a kind
    1.000000000    0  3.0000   0.0000  TOTALS
  Player can't double
  Payoff = 0.05787037037 (0.01929012346 * 3.0)
five of a kind: probability = 0.00077
  After rolling 0:
                              DOUBLED
    PROBABILITY  WIN  PAYOFF   PAYOFF
    1.000000000    3  3.0000   0.0000  five of a kind
    1.000000000    0  3.0000   0.0000  TOTALS
  Player can't double
  Payoff = 0.002314814815 (0.0007716049383 * 3.0)
Total Payoff = 1.354766804

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