The Casino Industry – Why the House Always Wins

Casino

A casino is a place where people can gamble and play games of chance. Some casinos have elaborate themes, stage shows and high-end restaurants while others are more straightforward with a focus on gambling. Regardless of what amenities are offered, the majority of casino profits come from gambling activities and games of chance. Slot machines, blackjack, roulette, baccarat and other table games provide the billions of dollars that casino owners rake in each year.

While most gamblers don’t want to admit it, the house always wins at a casino. This is because a casino’s built-in advantages ensure that it will win the vast majority of bets placed by patrons. This mathematical expectancy is known as the house edge and it is what keeps the casinos in business.

Because a casino is essentially guaranteed to make a profit, it can afford to offer patrons free or discounted goods and services. These inducements are known as comps. Depending on how much a patron bets and how long they stay at the casino, players can receive free hotel rooms, meals, tickets to shows or even free limo service or airline tickets.

Initially, many casinos were run by organized crime syndicates that used their ties to the mafia and other criminal elements to gain access to capital. But as the industry grew, real estate investors and large hotel chains realized they could profit from casino gambling without mob interference. This, coupled with federal crackdowns on mob involvement and the risk of losing a gaming license at even the slightest hint of mafia connection, kept legitimate businessmen away from the games and allowed casinos to thrive without a seamy mob presence.