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The Mathematics of Non-Negotiable Chip Programs by Eliot Jacobson Ph.D.

While much of the U.S. market shuns baccarat, it is the number one game internationally. The size of the wagers players make is stunning to watch. In Macau, for example, it is difficult to find a table with a minimum wager less than $100. The casinos are packed full of what we in America would consider to be high-rollers. And marketing understands that high-rollers want perks and cash-incentives for their play. Asian casinos use an essentially perfect solution to line up theoretical win with cash-incentive: non-negotiable chips (NN). The amount returned to the player as a cash-incentive corresponds to a cash rebate on the non-negotiable chips purchased and lost by the player. 

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