Economic Development and Casinos

Casinos are gambling establishments where people pay to play games of chance or, in some cases, skill. Many casinos use sophisticated marketing techniques to keep customers coming back, such as offering free drinks and food, as well as a wide variety of other amenities. Casinos also make money by charging a percentage of bets placed by patrons, known as the house edge. The house advantage can vary by game, but it is generally lower than two percent. In games where players compete against each other, the casino earns additional revenue through a commission, or rake.

Casino security starts on the floor, where casino employees watch every game and patron closely. Dealers follow routines that make it easy to spot crooked play, and pit bosses look for betting patterns that may indicate cheating. Elaborate surveillance systems offer a high-tech “eye-in-the-sky,” allowing security workers to monitor every table, window and doorway in the casino.

Many casino owners and officials tout economic development as one of the primary benefits of a new casino. However, it is important to consider whether the casino’s work force primarily consists of local citizens. If it does, the increased employment may decrease local unemployment rates but not necessarily improve the overall condition of the local population. This is particularly true in rural areas, where the influx of skilled labor may not offset loss of jobs in less-skilled industries. In such cases, local changes in unemployment should be compared with statewide unemployment rate changes.