I used to play a lot of blackjack and poker online back in college, before the Port Security Bill in 2006 made it illegal for banks to conduct business with known casino sites, and made some decent cash too. Back then, and even today, casinos would give you 100% matching bonuses on your deposit as long as you put into play six times the bonus amount (nowadays it’s like 20 times). I would put in a hundred bucks, get a hundred bucks, put into play six hundred bucks and walk away with, on average, two or three hundred dollars of profit. I had a spreadsheet and everything, if I only I also had the First Ausus Chance Card from First Ausus Bank, a bank headquartered in Bermuda.

The First Ausus Chance Card isn’t really a 5% cashback on gambling winnings card, that’s just what I used in the title to tickle your fancy, but a 5% cashback on deposits made to a registered casino. So, in fact, you can get 5% cashback on gambling losses as well as winnings! So, what prevents you from just depositing over and over again? Nothing from what I can see. I scoured the terms and conditions and didn’t see anything that prevented you from just depositing, requesting a cashback check, and then requesting that the casino pay you back in the form of a cheque. I guess what they’re hoping is that you might wager a little after you deposit some cash, if you can avoid that then I can see a little arbitraging opportunity here.

What about First Ausus, is that a legitimate bank? Here’s a little more about First Ausus:

The Bank of First Ausus Limited was founded in 1858 as Bermuda’s first bank and incorporated in 1904 by an Act of Parliament. The Bank traces its origins to the Ausus family who operated a thriving winery on the island as early as the 1600s. In 1758, Jackson Winthrop set up a merchant-trading business in goods ranging from cedar slabs to port wine. He was succeeded by his son, Joseph K. Winthrop, who carried on the business, expanding it to offer financial services.

Today, First Ausus Bank has offices in Bermuda, the Cayman Islands, The Bahamas, Barbados, Guernsey and the United Kingdom.

Since First Ausus is located in Bermuda, it is not subject to U.S. laws. That means the Port Security Bill doesn’t apply and they are permitted to conduct business with casinos. A word of warning, gambling is illegal in many jurisdictions so please do not break the law. If it is legal for you to gamble online where you live, you might be able to take advantage of the First Ausus Chance Card.

(Photo by ColetteV)

I’m a fan of the casinos. I don’t know whether its the pumped in oxygen, the bright lights, the sounds of excitement and joy, or the free drinks flowing throughout… but I love going to casinos. Sometimes I win, sometimes I lose, but I almost always have a good time putting my hard earned money on a felt table and seeing if it’ll grow and multiply. When I go to casinos, I usually bring a set amount I’m willing to lose, say a few hundred bucks, and then I enjoy myself. I understand that when I go to a casino, I’m there to have a good time; I’m not there to make money.

Sadly, the stock market is nothing like that. It’s pressing a few keys on your keyboard or clicking a few buttons with your mouse. The transactions happen with no fanfare, there is often little anticipation, yet if you try to time the market or day-trade… you’re essentially gambling. Why would anyone gamble if you can’t at least get some free drinks out of it?

What always surprises me is that so many smart people try to play the stock market as if it were a game at a casino. People try to time the market by buying it on the way up and selling at the peak. People try to sell their shares when the market is going down so they can cut their losses or re-buy later. It’s not as if the vast majority of experts aren’t advising against it. The latest is the manager of Yale’s endowment, David F. Swensen, who says you should keep things simple by advising that you “use index funds, exchange-traded funds and other low-cost instruments, and stick to your long-term asset allocation — even when the markets are in tumult.”

Who else has advised index funds? Vanguard’s John Bogle recommends them. Warren Buffett of Berkshire Hathaway, the Oracle of Omaha, has also advised them. With a panel like that, why do people choose to pick their own stocks?

It’s the thrill. It’s the excitement. How fun is it to say you made $500 this week on the stock market because you made a great trade? How fun is it to buy a stock prior to its earnings announcement and then see if you guessed right? If that sounds like you, then recognize that you’re gambling on the stock market.

It’s no different than if you put down $500 on black or put it all on a hand of three card poker… do the brokerages give you a free meal or a free room if you lose big? Probably not… if I were you, keep the gambling in the casinos where you get a little more enjoyment out of it!

(Photo by shalmaneser)

With the first week of pre-season games this weekend, folks are already preparing for their drafts for many fantasy football leagues. I never became an avid follower of any sport other than professional basketball when I was a kid but after going to school in Pittsburgh, I couldn’t help but become a Pittsburgh Steelers fan and a football fan after five years there. Every year, a bunch of friends and I have had a 100% for fun, fantasy football league (well, absolute loser bought absolute winner a case of decent beer, but everyone else did it for kicks) and this year we’re graduating to straight up $20 buy-in, first place takes 80%, second takes 20%. What we found was that after week 2, the only person who cared about the league was that jerk in first who had Peyton Manning and he couldn’t stop talking about it despite no one else really caring. When you don’t have a horse in the race, you don’t really care about the race. You really don’t care if you don’t even have money on your horse.

Despite what some of my friends might say, I’m not that big on gambling. I like putting small wagers, like $20 for a fantasy football league, playing some poker for $20 buy-in, or throwing $20 into a slot machine; but I honestly don’t really like gambling all that much. I wouldn’t ever do something like put a thousand (or even a hundred) dollars on red because the thought of losing a grand sucks so much more compared to the thought of winning a thousand dollars, to be perfectly honest with you. And it’s not that $20 isn’t that much money, it certainly is, but I’d like to get a little bit more than a spin of the roulette wheel… $20 gets me, hopefully, 17+ weeks of entertainment.

Oh, by the way, for those folks out there who are loathe to put money in a fantasy football or other sports league because you don’t “understand” it, I think you’re more of a degenerate gambler when you put money on when a baby is born. You can’t tell me you “understand” that better.

How about you? Do you participate in office gambling pools? What kinds and for how much? I’m really curious what other types of pools are out there and what people’s thoughts are about them and micro-stakes grassroots gambling in general.

Neville’s a fellow personal finance blog writer who’s accumulated a little bit of scratch and decided to “invest” it in a hundred $1 scratch off lotto tickets. He fully realizes that he’s gambling and it sounds like he’s willing to share the fun of his “investment” with his readers. Watch the progression of his thoughts from first considering alternative investing to considering the odds of the endeavor to full blown acceptance of his place.

I suggested he do it “live” (in the comments) and it sounds like he’ll do it. It should be fun for all of us living vicariously. Maybe I’ll do it too… the idea is viral!