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I know of at least one site where you really can get something for nothing. They offer a free sweepstakes to players who win a certain pre-defined minimum number of credits on their free slot machine games. Since these credits are the virtual equivalent of Monopoly money, if you have a small chance of winning anything at all, your expected value is essentially infinite.

What is expected value? It’s the average of the results of a tremendous number of repetitions of a bet. It’s the amount you can expect to win or lose on each bet given an almost infinite number of bets. Professional gamblers (including casinos) use expected value (EV) as a means of determining the attractiveness of a bet. It’s a simple enough calculation, too.

Here’s how you calculate it. You take the odds of winning and multiply that by the amount you stand to win. Then you take the odds of losing and multiply that by the amount you stand to http://spizmaneconomics.com/?p=3968 lose. So if you’re flipping a coin, and you win $1 every time you call it correctly, and you lose every time you call it incorrectly, your expected value is $0. You’ll win and lose in equal amounts over a large enough number of repetitions.

With a free slot machine game that offers any kind of chance of winning a prize, you have no loss to factor in. Over an infinite number of repetitions, your winnings would theoretically be infinite, while your losses would be 0.

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