John
Some casinos may operate like that, but not 100% across Europe. I have played in many casinos in the UK, and if zero comes and you have bet on one of the even money bets, they just give back half the bet. The alternative option (as you have outlined) is not given as an option.
I'm not saying the scenario that you and Carlos have outlined is incorrect in some (maybe many) locations, but it is not "100% correct" as it doesn't happen in every casino.
I have found this on the first search I tried on prison bets. It seems to indicate that both options are available - and as David and I have seen, UK casinos seem to offer the 50% refund option
Jason
http://roulettered.co.uk/articles/en-prison-rules.htm
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