1. How can game operators profit on every bet, even losing ones?
Game operators will pass through bets from their users. The type of bets will depend on the game format, but there will be three fundamental parameters passed on to the EdgeFund bankroll smart contract:
- Bet Size.
- Payout Odds
- Total House Edge (or Win Odds)
The smart contract will determine the outcome of the bet using decentralized random number generation, and in the case of a win will return the winnings.
As well as this, the smart contract will return the difference between the total house edge and the platform edge. This is profit for the game operator, separate from the any user winnings, and is returned to the game operator by the smart contract after every bet, regardless of the bet outcome.