When people hear the word casino, they often think of bright lights, big money and a chance to try their luck at games of chance. In fact, casinos are a form of entertainment that draws more than 51 million people — about one quarter of the adults in the United States over 21 — every year. But what makes a casino really tick? And how do they pull in the billions of dollars in gambling profits each year?
Unlike lottery games, where the odds of winning are based on how many tickets you buy, the casino industry is all about the house edge. That’s because casinos have built-in advantages that ensure the house will always win.
To control for these advantages, casinos have strict rules and regulations. Dealers wear aprons with no pockets so they can’t stash chips in their pants; they’re not allowed to use large watches, which allow them to slide a chip behind the face; and all betting transactions are monitored by computer systems. These technology systems, sometimes called “chip tracking,” allow a casino to monitor exact wagers minute by minute and to quickly spot statistical deviations in the expected results.
To encourage gamblers to spend more money, casinos also offer perks that are known as comps. These can include free hotel rooms, meals or tickets to shows for big spenders. In the past, Las Vegas casinos were famous for offering deep discounts on travel packages and cheap buffets to attract as many gamblers as possible.