Beneath the flashing lights and free cocktails, casinos are rigged to slowly bleed their patrons of cash. For years mathematically inclined people have tried to turn the tables, using their knowledge of probability and game theory to exploit weaknesses in a rigged system. Some of these strategies have worked, while others have fallen flat on their face. The best way to avoid losing money is not to gamble at all.
Casinos earn some revenue from food and entertainment, but the breadwinner is gambling itself. Statistically, every casino game has a house edge. Consequently, it’s very rare for a casino to lose money over time.
To bolster their profits, casinos offer comps, or complimentary goods and services. These include rooms, buffets, free show tickets and even limo service. Players are ranked according to how much they spend on the casino’s games, and those who spend the most are considered “good” players.
In the 1970s Las Vegas casinos began offering free hotel rooms and meals to their biggest gamblers in an effort to boost revenues. This strategy was later adopted by other casinos in the United States, and Native American casinos have also seen increased activity. Local changes in unemployment rates are often used as proof that casinos have improved employment opportunities, but this may be misleading unless other factors, such as population changes and statewide business conditions, are taken into account. This can be particularly important for smaller communities. Casinos bring in skilled labor from outside the area, which may decrease unemployment rates but it doesn’t necessarily increase the number of jobs for the original population.