Victoria: Beating the House Using the Principles of Statistics and Randomness

This study presents the algorithm - Victoria - an approach that demonstrates there are parameters φ, k, j considered optimal that guarantee the player will always have an advantage over the house in the sports betting field in the medium and long run with guaranteed satisfactory profits. After n Small Blocks (jn) and Intermediate Blocks (IBs) containing k independent events with the same probability p, we conclude that the cost-benefit ratio over the value in a sequence of independent events β (success block) > ζ (failure block) is always the case. Taking into account the possible impacts of Victoria on Decision Theory as well as Game Theory, a function η(Xt) called “Predictable Random Component” was also observed and presented. The η(Xt) function (or fv(Xt) in the context of VNAE) refers to the fact that within a game in which the randomness factor in a uniform distribution is crucial to it, any player who has advanced knowledge of randomness added to other additional actions, whether with the support of statistics, mathematical, physical operations and/or other cognitive actions, will be able to determine an optimal strategy whose results of the expected value of the player's payoff will always be positive regardless of what happens after n sequences determined by the player. In addition, the possibility of the existence of a new equilibrium was also observed, thus resulting in the Victoria-Nash Asymmetric Equilibrium (VNAE) theorization. [...]