Session Title

Session 2-3-E: Mathematics and Statistics I

Presentation Type

Paper Presentation

Location

Park MGM, Las Vegas, NV

Start Date

24-5-2023 1:30 PM

End Date

24-5-2023 3:00 PM

Disciplines

Business Analytics | Data Science | Finance and Financial Management | Management Sciences and Quantitative Methods | Survival Analysis

Abstract

Abstract

Rocket is a crash game developed by DraftKings, an American publicly traded online casino, sports betting and fantasy sports company. DraftKings Rocket is a game played with a rising rocket. Players must exit the rocket at any point before the rocket crashes. In that case they receive the payoff in accordance to the multiplier of their exit point. If the rocket crashes before the player bails, player’s payoff is 0 (and they lose their bet).

The game boasts an unprecedented 97% RTP (Return to Player). For comparison, Atlantic City casino slots typically have a 91-92% RTP, while Vegas casino slots average 92-96% RTP.

We plan to answer the following questions:

1) What is the distribution of the rocket crash times?

2) How many players are on board and how many bail before the explosion?

3) What are the optimal Rocket strategies for the player?

4) Can gaming operators attract more players by offering higher RTP levels similarly to how Walmart thrives by offering Everyday low prices and passing on the value to the consumers?

5) Does player behavior differ depending on the amount of money they bet?

6) How can the behavior of Rocket players be extended to that of stock/crypto investors?

Implications Statement/Target Audience:

This research has significant business implications for both online and offline casinos/gaming operators, Decision Sciences Professionals, Game Theory Researchers, as well as Exchanges, Investors, Traders and Market Makers in the Securities and Cryptocurrency markets.

Keywords

Return to player, online casino, crash games, data science, decision theory, gaming.

Author Bios

Mikhail M. Sher

Department of Management and Leadership

Leon Hess Business School

Monmouth University

Mikhail M. Sher, Ph.D. holds a Master’s Degree in Operations Research from Columbia University and a Doctorate in Operations Management from Drexel University in Philadelphia. His main research interests are Supply Chain Management and Service Operations Management and Promotions as well as their applications to Gaming and Hospitality sectors. Mikhail is also an accomplished poker player.

Robert Haywood Scott III

Department of Economics, Finance, and Real Estate

Leon Hess Business School

Monmouth University

Robert Haywood Scott, III is Professor in the department of Economics, Finance & Real Estate. He has a Ph.D. in Economics from the University of Missouri-Kansas City. He has published over 50 articles and two book books with Palgrave Macmillan and a third book forthcoming. His research interests include consumer credit and debt, real estate economics, applied econometrics, and gaming statistics.

Jonathan A. Daigle

Department of Economics, Finance, and Real Estate

Leon Hess Business School

Monmouth University

Jonathan A. Daigle is an Assistant Professor of Finance and the Leon Hess Business School Graduate (MBA) Program Director. He holds an MBA from the University of South Alabama and a Ph.D. in Finance from the University of Mississippi. His research interests include security issuance, private equity, and fintech.

Funding Sources

We (Mikhail Sher and Robert Scott) have received Monmouth University's Leon Hess Business School Summer Research Grant to fund this research. The funding body has no involvement in any aspects of the research.

Competing Interests

none

Comments

Dear Members of the Organizing Committee,

We look forward to presenting our research at your conference in Las Vegas.

Thank you for all your hard work in making the event happen.

Mikhail, Robert and Jonathan

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May 24th, 1:30 PM May 24th, 3:00 PM

The Rocket: Analyzing RTP (Return to Player), Payoff distribution and player behavior in crash games

Park MGM, Las Vegas, NV

Abstract

Rocket is a crash game developed by DraftKings, an American publicly traded online casino, sports betting and fantasy sports company. DraftKings Rocket is a game played with a rising rocket. Players must exit the rocket at any point before the rocket crashes. In that case they receive the payoff in accordance to the multiplier of their exit point. If the rocket crashes before the player bails, player’s payoff is 0 (and they lose their bet).

The game boasts an unprecedented 97% RTP (Return to Player). For comparison, Atlantic City casino slots typically have a 91-92% RTP, while Vegas casino slots average 92-96% RTP.

We plan to answer the following questions:

1) What is the distribution of the rocket crash times?

2) How many players are on board and how many bail before the explosion?

3) What are the optimal Rocket strategies for the player?

4) Can gaming operators attract more players by offering higher RTP levels similarly to how Walmart thrives by offering Everyday low prices and passing on the value to the consumers?

5) Does player behavior differ depending on the amount of money they bet?

6) How can the behavior of Rocket players be extended to that of stock/crypto investors?

Implications Statement/Target Audience:

This research has significant business implications for both online and offline casinos/gaming operators, Decision Sciences Professionals, Game Theory Researchers, as well as Exchanges, Investors, Traders and Market Makers in the Securities and Cryptocurrency markets.