Variance

Variance is a measure in statistics that basically indicates the dispersion of the actual outcome of a gamble from the expected return over a given time period.

Impact on Results:

This is well explained through variance in iGaming, whereby one can have steep bankroll highs, followed by steep bankroll lows irrespective of the players’ skills or strategy.

Short-term vs. Long:

Variance is significantly greater in the short term, as luck plays a substantial role in the outcome. In the long run skillful players are more likely to get results, that actually reflect their true ability as the variance irons out.

Types of Games:

Different types of games exhibit varying levels of variance. For example, games like poker may have high variance due to the influence of opponents’ decisions, while games like blackjack may have lower variance with more predictable outcomes.

Bankroll Management:

Bankroll management also requires an understanding of variance. One must strategise their future in case of swings in results and survive losing streaks without going broke.

Emotional Resonance:

It may also affect a player’s mood, frustrating or over-exciting him. Only when players learn to recognise and accept the variance, they will be able to make rational decisions and keep their minds healthy.