Blackjack rules XXV
How the principle of even money acts in a blackjack game situation can be explained by an example where a player bets, say, $50 for the hand of play. Now ‘even money’ situation occurs when a dealer has an ace card as his up card and allows the player a choice of 1:1 payout immediately. Two situations can arise from this.
If both the player and the dealer has a blackjack hand, without going for an insurance wager, the player neither ins nor loses any money as the hand results in a tie or push. But if the player had accepted the insurance bet it would mean he would win the 2-to-1 wager and for staking $25 on insurance wins $50 back. Since his original bet was also $50, the player wins even money. The only other situation that can happen otherwise is when the player’s blackjack cannot be matched by the dealer whose hoe card turns out not to be any ten-valued card. Now if the player had not chosen insurance but played normally, he would win $75 for the $50 he had staked according to the 3:2 payout rule. But in case he had bought the insurance, then now he loses the $325 for that wager but still wins $75 for his original bet which means he ends up with $50 net winnings, the same amount he had staked and so gets even money.
Even money situation is apparently advantageous since the player breaks even on his bet, regardless of the dealer having a blackjack. However, in the long run blackjack players stand to make more profits if they play for the original bet with payout offering 3:2 winning odds although it can lose him money on several occasions. Many players who are cautious and try avoiding losses in the short term prefer to accept even money when offered. But a basic strategy player never opts for insurance or even money and plays for long term unless he is a professional gambler with card counting skills and can turn the situation profitable and emerge winner.
