There’s a Japanese role playing game with a video poker side game using a full deck and 2 jokers. The payout table is below:
Anything less than 2 pair: loss
2 pair: 2x bet
3 of a kind: 3x
Straight: 5x
Flush: 7x
Full house: 8x
Four of a kind: 10x
Straight flush: 20x
Royal flush: 50x
Five of a kind: 100x
Now, after a win, the game allows you to bet double or nothing by dealing a card from a fresh deck and betting whether the next is high or low (with jokers being higher than aces). If you are right, or the next card is the same, you double your winnings with a chance to double up again (up to ten times total).
Players of this game swear the computer cheats on the double up game (seemingly too many times when the safe bet loses). It occurred to me that it wouldn’t need to if the game were properly weighted towards the house. Who is favored in this game? I have a feeling it’s the player, basked on my experience playing it and the fact that the game designers here have a different purpose with it than a casino, but I found the question interesting anyway.
(I know video game circumstances are different, especially in this one, where you can save and reload if you lose big, but that is only a factor in designer intent.)
I believe you have to decided to double or not, then see the card, then decide whether to bet high or low.
Since ties are decided in your favor, the doubling bet is better than 50-50 regardless of the first card so based on expected value, it should always be taken. The worst card to see is an 8 where you have a 54.7% chance of winning the doubling bet. Seeing a joker or 2 makes it a sure-thing bet. Before seeing the card, the chance of winning the bet is 78.2%.
suggests the house edge is:
Double Joker: Paytable Analysis
Optimized House Edge: -46.60% (146.60%)
Default House Edge: -45.03% (145.03%)
Standard Deviation: 3.22
Final Hand Pay Percentage 1 in …
Royal Flush 50
0.0011%
94534
Wild Royal Flush 50
0.0222%
4510
5 of a Kind 100
0.0415%
2411
Straight Flush 20
0.123%
810
4 of a Kind 10
1.83%
55
Full House 8
1.81%
55
Flush 7
2.54%
39
Straight 5
3.70%
27
3 of Kind 3
17.2%
5.8
2 Pair 2
9.16%
11
Nothing 0
63.6%
1.6