Underneath the flashing lights and free cocktails, casinos are businesses, engineered to slowly bleed patrons of their cash. While musical shows, lighted fountains and shopping centers draw in the crowds, most of the money a casino makes is from games of chance. Slot machines, blackjack, poker, craps and roulette are just a few of the games that supply the billions of dollars in profits that casinos rake in each year.
Casinos use a variety of methods to keep their patrons engaged and playing longer, including comps (free drinks, meals, hotel rooms, transportation and gambling time). However, these incentives can be problematic when the underlying gaming model isn’t transparent. The house edge and variance are key components of any casino’s financial health, but they are difficult to understand for guests who only see the price they pay on a particular trip.
A casino’s built-in advantage, or “house edge,” is designed to ensure the house will ultimately win each hand of blackjack or game of poker. In games where skill is involved, the casino has a slight advantage over the player, which can be reduced by learning basic strategy.
The casino industry has made extensive use of technology, particularly in recent years. Video cameras help supervise the gambling floor, and computers keep track of the results of every spin of the roulette wheel or roll of the dice. The chips used to place bets on casino tables also have built-in microcircuitry that allows them to communicate with the casino’s electronic systems, allowing casinos to monitor exact amounts wagered minute by minute and quickly discover any statistical deviation from expected results.