Cost per coin is not cost per redeemable coin
Coins per dollar, and cost per coin, from the package value calculator.
- Read as
- The package offering more coins per dollar is the better value.
- Actually
- Coins per dollar prices the coins as received; what determines value is the price divided by the balance expected to survive the wagering attached to them, which two packages with identical headline ratios can differ on sharply.
Coins per dollar is S ÷ P — the face amount against the price. It says nothing about the requirement attached to the amount, and the requirement is where most of the cost sits.
The figure that answers the question is cost per redeemable coin: P ÷ E[balance], where E[balance] = S − ((S × m) ÷ c) × (1 − r). Two packages can match exactly on coins per dollar and diverge substantially once m and c enter.
Where the requirement exhausts the expected balance, cost per redeemable coin is reported as absent rather than as a very large number. A number there would imply the package had been measured on the same scale as one that survives; it has not been.
Uplift against a baseline package is omitted entirely when no baseline is supplied, rather than guessed.
One assumption is carried throughout: coins redeem at one to one dollar. At a different rate every money figure scales by that rate, and the comparison between packages is unchanged. A stated maximum eligible bet is carried through the page untouched and never enters a calculation: changing it moves no figure on the page.
The method behind this figure
Package value — package-value v1.0.0. Its formula, assumptions and limitations are published in full on the methodology page.
Related: Package value calculator, Compare package scenarios, Worked examples, Glossary