Originally <a href='/showthread.php?p=16228488'>posted</a> on 10/02/2012:

You're oversimplifying.

Assume you make 7 deposits totalling $1000. You get your 8th free, so your play amount is 1000 * 8/7. You get an 8% bonus on each, so it is 1000 * 1.08 * 8/7. You get an 8% rebate on your losses, which is the entire amount (including losses on your rebated losses). Your actual play amount is then 1000 * 1.08 * 8/8 / (1-0.08).

I'm attaching a spreadsheet I used to estimate the EV on it.