That's great if you know a priori that you cannot predict the outcome of what you are betting with.

I don't think it would be necessary to know a priori that something is unpredictable; failing to find a pattern after some number of observations should allow an algorithm to determine that the event is not predictable by that algorithm.

The trouble is that you can't reliably distinguish random data (or data determined by factors you're not considering) from patterned data.

How do you think random number generators are tested?

A smarter algorithm would consider the payoff as well as the odds. Then it may bet or refrain.

What if the coin had the best odds compared to all other games?