A gambler on an oil rig can listen to baseball games on the radio and place bets after knowing the outcome. When the radio breaks, he is only 60% sure of the outcome. The Kelly criterion provides that he should bet 20% of his bankroll in this situation to maximize expected gain per game. More generally, the Kelly fraction recommends betting a portion based on the probability of winning, probability of losing, and odds to maximize long-term expected returns when an edge exists between one's beliefs and the offered odds.