Keno Odds

Keno is an entirely electronic game that is played every few minutes by a computer. Pretend that the computer has a basket of eighty balls, each sequentially numbered from one to eighty. You take a card with numbers from one to eighty and mark from one to fifteen “spots” (i.e., “lucky balls”) that you expect to be drawn, and then place a bet. After the bets are closed, the computer pulls out twenty balls from the basket, and if you “catch” enough “spots,” you’ll get a return on your bet.

Summary of Results

If following section’s calculations are correct, along with my program, the fraction of your bet that you lose on average per game for this particular casino depends on the number of spots that you play on the card, as follows:

Spots bet Percentage lost
1 25%
4 26%
3 26%
5 27%
8 27%
7 28%
10 28%
2 28%
11 28%
9 28%
12 28%
6 28%
13 29%
14 29%
15 29%

So, from what I can tell, you’re crazy to play Keno for any reason. If you can get your hands on the odds brochure from your favorite casino (or state lottery) and email them to me, I’ll be happy to run my program for you, or you can try it yourself. The theory is so simple that you can write your own program in a few minutes, and even if you cannot program, all you need is a calculator to determine the odds yourself.

How to Calculate the Odds for your Casino.

The probability of catching exactly r spots when you bet on N of them (where N >= r) is given by

P(N,r) = c(N,r) * c(80-N, 20-r) / c(80,20).

In other words, P(N,r) is the number of ways that you can pick r of the N spots times the number of ways that the computer can pick all of the spots that you didn’t bet on divided by the ways that it can pick twenty spots. Note that c(N,r) is the famous “binomial coefficient”, where

c(N,r) = f(N,r) / f(r,r),

and we can define f(n,r) according to the rules

f(n,0) = 1, otherwise f(n,r) = n * f(n-1,r-1).

Example

A casino says “play four spots, catch two and get 1:1, three and get 4:1, all four and get 115:1.” Should we bet on four spots?

The probability of getting zero of four spots is p0 = P(4,0) = 97527 / 316316 = 0.3083. The probability of getting one of four spots is p1 = P(4,1)= 34220 / 79079 = 0.4327. The probability of getting two of four spots is p2 = P(4, 2) = 16815 / 79079 = 0.2126. The probability of getting three of four spots is p3 = P(4, 3) = 3420 / 79079 = 0.04324. The probability of getting all four spots is p4 = P(4, 4) = 969 / 316316 = 0.003063. (Note that the values of P can be found in the following table for your convenience.)

Note that all of these probabilities add to one: p0 + p1 + p2 + p3 + p4 = 1. Now you start by giving them one dollar, but you have a chance to win it back! You earn $1 with probability p2, $4 with probability p3, and $115 with probability p4, so your expected return per dollar bet is

=(what you put in) + (what you expect to get out)

= (-$1) + (($1)p2 + ($4)p3 + ($115)p4)

= (-$1) + (($0.213) + ($0.173) + (0.35229012))

= (-$1) + ($0.738)

= -$0.26.

In other words, you expect to loose about 0.26 cents per dollar that you bet on four spots, and this is horrible—pick a better game, like Baccarat.

A Specific Casino

For a dollar bet,

Spots Catch Win Probability Expected return
1 1 $3.00 0.25 $0.7500
2 2 $12.00 0.060126584 $0.7215
3 2 $1.00 0.13875365 $0.1388
3 3 $43.00 0.013875365 $0.5966
4 2 $1.00 0.21263547 $0.2126
4 3 $4.00 0.04324789 $0.1730
4 4 $115.00 0.0030633924 $0.3523
5 3 $2.00 0.08393505 $0.1679
5 4 $20.00 0.012092338 $0.2418
5 5 $500.00 6.449247e-4 $0.3225
6 3 $1.00 0.12981954 $0.1298
6 4 $4.00 0.028537918 $0.1142
6 5 $90.00 0.0030956385 $0.2786
6 6 $1500.00 1.2898494e-4 $0.1935
7 3 $0.50 0.17499325 $0.0875
7 4 $1.50 0.052190967 $0.0783
7 5 $20.00 0.008638505 $0.1728
7 6 $360.00 7.320767e-4 $0.2635
7 7 $5000.00 2.4402556e-5 $0.1220
8 5 $9.00 0.018302586 $0.1647
8 6 $90.00 0.0023667137 $0.2130
8 7 $1500.00 1.6045517e-4 $0.2407
8 8 $25000.00 4.3456605e-6 $0.1086
9 4 $0.50 0.11410519 $0.0571
9 5 $3.00 0.03260148 $0.0978
9 6 $40.00 0.0057195583 $0.2288
9 7 $300.00 5.9167844e-4 $0.1775
9 8 $4000.00 3.2592455e-5 $0.1304
9 9 $37500.00 7.242768e-7 $0.0272
10 5 $2.00 0.05142769 $0.1029
10 6 $20.00 0.0114793945 $0.2296
10 7 $140.00 0.0016111432 $0.2256
10 8 $1000.00 1.3541937e-4 $0.1354
10 9 $4000.00 6.120649e-6 $0.0245
10 10 $50000.00 1.1221189e-7 $0.0056
11 5 $1.00 0.074080355 $0.0741
11 6 $8.00 0.020203736 $0.1616
11 7 $80.00 0.0036078098 $0.2886
11 8 $315.00 4.1141692e-4 $0.1296
11 9 $1800.00 2.837358e-5 $0.0511
11 10 $12500.00 1.05799794e-6 $0.0132
11 11 $65000.00 1.603027e-8 $0.0010
12 5 $0.50 0.09938732 $0.0497
12 6 $3.00 0.032208852 $0.0966
12 7 $35.00 0.0070273858 $0.2460
12 8 $260.00 0.0010195985 $0.2651
12 9 $500.00 9.5401025e-5 $0.0477
12 10 $1500.00 5.427989e-6 $0.0081
12 11 $20000.00 1.672724e-7 $0.0033
12 12 $70000.00 2.0909049e-9 $0.0001
13 0 $1.00 0.016395647 $0.0164
13 6 $1.00 0.047501296 $0.0475
13 7 $18.00 0.012315149 $0.2217
13 8 $80.00 0.0021831403 $0.1747
13 9 $700.00 2.5989765e-4 $0.1819
13 10 $3000.00 2.0062272e-5 $0.0602
13 11 $10000.00 9.433671e-7 $0.0094
13 12 $50000.00 2.3983909e-8 $0.0012
13 13 $75000.00 2.459888e-10 $0.0000
14 0 $1.00 0.011501424 $0.0115
14 6 $1.00 0.06575738 $0.0658
14 7 $10.00 0.019851286 $0.1985
14 8 $40.00 0.0041816365 $0.1673
14 9 $310.00 6.0823804e-4 $0.1886
14 10 $1100.00 5.973766e-5 $0.0657
14 11 $3100.00 3.8110152e-6 $0.0118
14 12 $25000.00 1.4784111e-7 $0.0037
14 13 $50000.00 3.084039e-9 $0.0002
14 14 $100000.00 2.5700322e-11 $0.0000
15 0 $1.00 0.008016144 $0.0080
15 6 $1.00 0.08634808 $0.0863
15 7 $5.00 0.02988972 $0.1494
15 8 $30.00 0.0073314407 $0.2199
15 9 $130.00 0.0012671626 $0.1647
15 10 $310.00 1.5205951e-4 $0.0471
15 11 $2500.00 1.2342492e-5 $0.0309
15 12 $7500.00 6.4960486e-7 $0.0049
15 13 $25000.00 2.0677078e-8 $0.0005
15 14 $50000.00 3.5045895e-10 $0.0000
15 15 $125000.00 2.336393e-12 $0.0000

Keno Odds

Wherever you choose to play the payout schedule overall is geared to provide around a 70% return for live Keno and around 85-90% for Online and Video Keno. This doesn’t sem like a big difference but think of it in the inverse terms - the casino’s profit. A game that gives you a 95% return means the casino is keeping 5% but a game that is giving you a 70% return then the casino is keeping 30% - 6 times as much! You can download my Keno Odds spreadsheet by right-clicking KenoOdds.xls and selecting “Save target as” to figure out what the casino edge is in your keno game.

The equation for calculating the probability (p) of hitting (n) numbers out of the (x) numbers you picked when (y) numbers were drawn out of (z). (i.e. - “What is the probability of hitting 4 out of the 5 numbers I picked when 20 numbers were drawn out of 80″).

n = 4
x = 5
y = 20
z = 80

p(x,n) = (combin(x,n) * combin(z-x,y-x+n)) / combin(z,y)

It is important not to look at the payout schedules but to actually see how much profit the casino is keep from the money you wager. That’s what the following does. I took 2 payout schedules and calculated the casino edge on all the bets and showed it in red. At first glance the 2nd payout schedule looks better because the high-end payouts are much higher but payouts are smaller on the lower end. But the payouts on the small end occur much more frequently and that’s where the value of the ticket is most of the time. The 1st payout schedule shows a casino edge of about 7% while the 2nd schedule shows an edge anywhere 21-66%! You will lose your money anywhere from 3-9 times as fast playing the 2nd schedule if you choose to play the game with the big payoffs.

Keno Odds

Here are all possible keno outcomes. For every possible number of spots played you can see both the probability of each outcome and the odds against that outcome happening. This shows, for example, that you have roughly a 71-1 shot at hitting a 3-spot, while you are almost 85% likely to catch only 0 or 1 on the same ticket. For very large or very small numbers, scientific notation is used. The term “e+nnn” means move the decimal point nnn places to the right, adding zeroes as appropriate. Similarly, “e-nnn” means to move the decimal point nnn places to the left, padding with zeroes. Thus, 1.42e-09 is shorthand for .00000000142, while 2.71e+6 is another way of writing 2710000.

Keno outcome probabilities

               Play 1 spot

Catch    probability    odds-to-1 against

    0     0.7500               0.3333
    1     0.2500               3.0000

               Play 2 spots

Catch    probability    odds-to-1 against

    0     0.5601               0.7853
    1     0.3797               1.6333
    2     0.0601              15.6316

               Play 3 spots

Catch    probability    odds-to-1 against

    0     0.4165               1.4009
    1     0.4309               1.3209
    2     0.1388               6.2070
    3     0.0139              71.0702

               Play 4 spots

Catch    probability    odds-to-1 against

    0     0.3083               2.2434
    1     0.4327               1.3109
    2     0.2126               3.7029
    3     0.0432              22.1225
    4     0.003063           325.44

               Play 5 spots

Catch    probability    odds-to-1 against

    0     0.2272               3.4017
    1     0.4057               1.4650
    2     0.2705               2.6974
    3     0.0839              10.9140
    4     0.0121              81.6970
    5     0.000645          1549.57

               Play 6 spots

Catch    probability    odds-to-1 against

    0     0.1666               5.0023
    1     0.3635               1.7511
    2     0.3083               2.2434
    3     0.1298               6.7030
    4     0.0285              34.0411
    5     0.003096           322.04
    6     0.000129          7751.84

               Play 7 spots

Catch    probability    odds-to-1 against

    0     0.1216               7.2254
    1     0.3152               2.1727
    2     0.3267               2.0613
    3     0.1750               4.7145
    4     0.0522              18.1604
    5     0.008639           114.76
    6     0.000732          1364.98
    7     0.00002440       40978

               Play 8 spots

Catch    probability    odds-to-1 against

    0     0.0883              10.3294
    1     0.2665               2.7529
    2     0.3281               2.0474
    3     0.2148               3.6558
    4     0.0815              11.2694
    5     0.0183              53.6371
    6     0.002367           421.53
    7     0.000160          6231.27
    8     0.00000435      230114

               Play 9 spots

Catch    probability    odds-to-1 against

    0     0.0637              14.6868
    1     0.2207               3.5317
    2     0.3164               2.1603
    3     0.2461               3.0632
    4     0.1141               7.7638
    5     0.0326              29.6735
    6     0.005720           173.84
    7     0.000592          1689.11
    8     0.00003259       30681
    9     7.2428e-007     1.3807e+006

               Play 10 spots

Catch    probability    odds-to-1 against

    0     0.0458              20.8385
    1     0.1796               4.5688
    2     0.2953               2.3869
    3     0.2674               2.7397
    4     0.1473               5.7880
    5     0.0514              18.4448
    6     0.0115              86.1126
    7     0.001611           619.68
    8     0.000135          7383.47
    9     0.00000612      163380
   10     1.1221e-007     8.9117e+006

               Play 11 spots

Catch    probability    odds-to-1 against

    0     0.0327              29.5739
    1     0.1439               5.9486
    2     0.2681               2.7303
    3     0.2784               2.5921
    4     0.1786               4.5995
    5     0.0741              12.4989
    6     0.0202              48.4958
    7     0.003608           276.18
    8     0.000411          2429.62
    9     0.00002837       35243
   10     0.00000106      945180
   11     1.6030e-008     6.2382e+007

               Play 12 spots

Catch    probability    odds-to-1 against

    0     0.0232              42.0530
    1     0.1138               7.7900
    2     0.2378               3.2057
    3     0.2797               2.5749
    4     0.2058               3.8600
    5     0.0994               9.0616
    6     0.0322              30.0474
    7     0.007027           141.30
    8     0.001020           979.78
    9     0.00009540       10481
   10     0.00000543      184229
   11     1.6727e-007     5.9783e+006
   12     2.0909e-009     4.7826e+008

               Play 13 spots

Catch    probability    odds-to-1 against

    0     0.0164              59.9918
    1     0.0888              10.2600
    2     0.2066               3.8398
    3     0.2727               2.6665
    4     0.2273               3.3998
    5     0.1259               6.9442
    6     0.0475              20.0521
    7     0.0123              80.2008
    8     0.002183           457.06
    9     0.000260          3846.67
   10     0.00002006       49844
   11     9.4337e-007     1.0600e+006
   12     2.3984e-008     4.1695e+007
   13     2.4599e-010     4.0652e+009

               Play 14 spots

Catch    probability    odds-to-1 against

    0     0.0115              85.9458
    1     0.0685              13.5945
    2     0.1763               4.6723
    3     0.2590               2.8603
    4     0.2422               3.1287
    5     0.1520               5.5801
    6     0.0658              14.2074
    7     0.0199              49.3746
    8     0.004182           238.14
    9     0.000608          1643.09
   10     0.00005974       16739
   11     0.00000381      262396
   12     1.4784e-007     6.7640e+006
   13     3.0840e-009     3.2425e+008
   14     2.5700e-011     3.8910e+010

               Play 15 spots

Catch    probability    odds-to-1 against

    0     0.008016           123.75
    1     0.0523              18.1281
    2     0.1479               5.7595
    3     0.2404               3.1597
    4     0.2502               2.9966
    5     0.1762               4.6770
    6     0.0863              10.5810
    7     0.0299              32.4563
    8     0.007331           135.40
    9     0.001267           788.16
   10     0.000152          6575.37
   11     0.00001234       81020
   12     6.4960e-007     1.5394e+006
   13     2.0677e-008     4.8363e+007
   14     3.5046e-010     2.8534e+009
   15     2.3364e-012     4.2801e+011

               Play 16 spots

Catch    probability    odds-to-1 against

    0     0.005550           179.19
    1     0.0395              24.3395
    2     0.1223               7.1798
    3     0.2185               3.5768
    4     0.2515               2.9762
    5     0.1971               4.0738
    6     0.1084               8.2251
    7     0.0425              22.5240
    8     0.0120              82.6408
    9     0.002406           414.59
   10     0.000343          2913.53
   11     0.00003403       29387
   12     0.00000228      438862
   13     9.8402e-008     1.0162e+007
   14     2.5449e-009     3.9295e+008
   15     3.4507e-011     2.8980e+010
   16     1.7972e-013     5.5641e+012

               Play 17 spots

Catch    probability    odds-to-1 against

    0     0.003815           261.10
    1     0.0295              32.9185
    2     0.0996               9.0417
    3     0.1948               4.1324
    4     0.2467               3.0542
    5     0.2138               3.6779
    6     0.1309               6.6405
    7     0.0576              16.3649
    8     0.0183              53.4990
    9     0.004234           235.16
   10     0.000703          1421.34
   11     0.00008285       12069
   12     0.00000678      147516
   13     3.7247e-007     2.6848e+006
   14     1.3069e-008     7.6517e+007
   15     2.7039e-010     3.6983e+009
   16     2.8643e-012     3.4912e+011
   17     1.1233e-014     8.9026e+013

               Play 18 spots

Catch    probability    odds-to-1 against

    0     0.002604           383.00
    1     0.0218              44.8670
    2     0.0800              11.4963
    3     0.1707               4.8576
    4     0.2366               3.2267
    5     0.2255               3.4342
    6     0.1527               5.5490
    7     0.0748              12.3710
    8     0.0267              36.4013
    9     0.006990           142.06
   10     0.001331           750.43
   11     0.000183          5475.01
   12     0.00001775       56324
   13     0.00000119      839002
   14     5.3209e-008     1.8794e+007
   15     1.4936e-009     6.6952e+008
   16     2.4142e-011     4.1421e+010
   17     1.9256e-013     5.1932e+012
   18     5.3489e-016     1.8695e+015

               Play 19 spots

Catch    probability    odds-to-1 against

    0     0.001764           565.86
    1     0.0160              61.6531
    2     0.0635              14.7549
    3     0.1471               5.7962
    4     0.2223               3.4975
    5     0.2320               3.3101
    6     0.1728               4.7879
    7     0.0936               9.6853
    8     0.0372              25.8502
    9     0.0109              90.5347
   10     0.002356           423.39
   11     0.000371          2696.22
   12     0.00004197       23824
   13     0.00000335      298668
   14     1.8263e-007     5.4756e+006
   15     6.5224e-009     1.5332e+008
   16     1.4304e-010     6.9912e+009
   17     1.7408e-012     5.7445e+011
   18     9.8350e-015     1.0168e+014
   19     1.7254e-017     5.7956e+016

               Play 20 spots

Catch    probability    odds-to-1 against

    0     0.001186           842.38
    1     0.0116              85.4464
    2     0.0497              19.1150
    3     0.1249               7.0087
    4     0.2050               3.8773
    5     0.2333               3.2867
    6     0.1902               4.2583
    7     0.1133               7.8265
    8     0.0499              19.0554
    9     0.0163              60.4198
   10     0.003940           252.80
   11     0.000702          1422.82
   12     0.00009117       10968
   13     0.00000847      118084
   14     5.4888e-007     1.8219e+006
   15     2.3951e-008     4.1751e+007
   16     6.6828e-010     1.4964e+009
   17     1.1035e-011     9.0624e+010
   18     9.5126e-014     1.0512e+013
   19     3.3943e-016     2.9461e+015
   20     2.8286e-019     3.5353e+018

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