HERE'S a sad story about a pathological gambler I interviewed at the Institute of Mental Health.

TEXT/GRAPHICS: LARRY HAVERKAMP AND MAROO

Now 37, Mike (not his real name) figures he has lost around a million dollars over the past 20 years. He borrowed almost all of it and has repaid about $700,000.

The balance of $300,000 is money he was unable to repay the loan sharks, relatives and friends.

Mike says: 'In a way, it is better that I couldn't pay.

'Gamblers use money to pay off debts, which only improves their credit standing with loan sharks and junkets who lend them more. It leads to more losses which perpetuates the cycle.'

Mike said his immediate family helped the most.

'My wife has a steady job and helped me. A low point was when my brother sold his HDB flat for $300,000, which I used to pay gambling debts.

'I once even sold my supplier's equipment for more than $200,000 and used the money to gamble. I lost it and left the country.

'That was in June 2007. I returned in January 2008 and was arrested at the airport.'

After six months in prison, Mike was released in June 2008 and - you guessed it - he headed straight for the cruise ship casinos.

From June to December 2008, he lost another $100,000 at his game of choice: Baccarat.

Last March, his wife took him to the Institute of Mental Health and checked him in. Since then, Mike hasn't gambled.

He even took a self-exclusion order, barring him from the new casinos at Marina Bay and Sentosa. He knows it's necessary.

'Everyone takes advantage when they see you gambling big. Loan sharks are happy to help with loans of $8,000 to repay $10,000 in two weeks.

'But in two weeks, the money would be gone. I typically bet $500 per hand and could win big amounts like $30,000 or $40,000. But then bigger losses followed.'

Cruise ships considered Mike a high roller, which made him feel proud.

He says: 'I got free drinks, food and respect. It was a luxury life although I spent most of it staring at card tables. I once spent three days and nights on a baccarat betting binge.

'Like many gamblers, I was superstitious. I didn't let anyone touch me when I gambled as it would drain away my luck, or so I thought. I also didn't allow anyone to stand in front of me since that would block my luck.

'Casinos accept these quirks and even encourage them. They know a gambler with 'un-blocked luck' thinks he can win.

'Casinos never explain probabilities and the certainty of losing. I learned it the hard way by paying $1million over 20 years - and I begged, borrowed and stole to do it.'

Gambling odds

The simplest way to express it is the 'house edge', which is how much - on average - the casino or house keeps for every $100 that is wagered.

For example, Singapore Pools pays out 65.9 per cent for 4-D big. It retains 34.1 per cent, which is the 'house edge'.

The house edge for most casino games is lower - like 2 or 3 per cent, but be warned that you could lose more.

It's because the rate of play is much faster for casino games. It can be one hand per minute for blackjack compared with the purchase of just a few tickets per week for 4-D.

Combining (i) the house edge with (ii) the rate of play and (iii) time played gives the 'expected loss'.

Casinos routinely calculate this to determine a player's 'value' to the casino.

It is how much the player is expected to lose.

If the value is, say, $10,000, the casino might refund $2,000 to the player in the form of gambling chips, free room nights or other perks.

It's seductive but remember this: Casinos consider the freebies to be an investment and not a gift.

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