I really don't see this discussion going anywhere, it's replies like these that spams the thread and hides the good ideas.
Obviously the system is biased to the house and the formula for the system is a simple variable. This can definitely be improved though, benefiting the player and making it seem like there is a better chance at winning. The idea of a 'holding-pond' is a model used in other games/gambling system which could work on era. (I forget where the holding-pond post was, it got lost among the spam)