How do you beat faux dowager when I'm level 12?

That casino in that town you passed through with the awesome, but insanly over priced weapons.

get about, say, 8000 gold blow them all on tokens. Then save, then put everything you got into the 100 token slot machine (red one on its own at the back) if you win, go save it. If you lose reset and try again.

Repeat process. I bought all of the items out of the casino within the hour.

That should help a lot.