A casino is a colorful, pulsating entertainment destination that invites patrons to try their luck at gambling. While elaborate themes, luxurious hotels and dazzling shows help bring in the crowds, casinos wouldn’t be able to pull in the billions of dollars in profits raked in by games like slot machines, blackjack, roulette, craps, keno and baccarat without the element of chance.
While many of these games are fun to play, they aren’t designed with skill in mind and, if not played correctly, will result in the player losing money. But the fact is, mathematical probability never lies. Each casino game has a built-in advantage over the gamblers, known as the house edge. It helps to ensure that over time, the house will win more money than it loses to players.
Casinos make money from the games they offer by a combination of commissions on the bets made and by the house’s edge over the long term (as outlined above). The majority of their profits, however, come from high rollers who spend large sums of money. These high rollers are rewarded with comps, which can include free hotel rooms, dinners, tickets to shows and even airline and limo service.
While most legitimate businessmen were wary of getting involved with the casinos, mobsters saw an opportunity to make big money and became heavily invested in their operations. In the ’70s and ’80s, they pushed for legislation to allow them to operate in Atlantic City and on American Indian reservations that were exempt from state antigambling laws.