How Does a Casino Make Money?

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The modern casino is like an indoor amusement park for adults, but the vast majority of the entertainment (and profits for the owner) comes from gambling. Slot machines, blackjack, roulette, craps, baccarat and other games of chance are what provide the billions of dollars in profits casinos rake in every year. This article discusses how casinos make money, what the most popular casino games are and how they are played, what it’s like to gamble in a casino and how the business stays safe from cheaters and thieves.

In the United States, there are more than a dozen casino destinations that draw in millions of visitors each year. While luxuries like stage shows, restaurants and free drinks help draw in the crowds, casinos wouldn’t exist without games of chance. Slot machines, baccarat, poker and other games with an element of skill give the house a mathematical edge over the players. These odds are called the house edge or expected value, and they are uniformly negative (from the player’s perspective). Casinos earn their profits by taking a commission on these games, which is called rake.

In the past, many of these establishments were run by mob families or were owned by gangsters. But real estate investors and hotel chains saw the potential for these money-making venues, bought out the mobsters, and started operating their own casinos. Today, mob involvement is rare and most casinos enjoy the safety of being operated by legitimate companies with deep pockets.