The Casino Business
Typically located in massive resorts, casinos offer games of chance and skill played on tables and machines. They can also be found in small card rooms or floating casinos that operate on boats and barges on waterways across the United States, as well as at racetracks and in truck stops and other smaller businesses.
Casinos earn billions of dollars each year for companies, corporations, investors, Native American tribes and state and local governments. These profits are earned through gambling, including slot machines, blackjack, roulette, craps, keno and poker.
Gambling has a long history, dating back to at least the 18th century. Historically, gambling was a social activity that took place in private clubs known as ridotti. However, the gambling craze that swept Europe in the 16th century led to the development of casinos as a venue for gambling.
Gaming historians estimate that at least as early as the 15th century, players were able to make bets on various games. This influx of money from the wealthy, combined with the closure of large public gambling houses like the Ridotto, pushed gambling into the smaller clubhouses that became known as casinos.
The most popular casino games are roulette, craps and blackjack, all of which have a house edge that casinos must manage to keep low enough to attract the big bettors. In France, for example, a house edge of less than one percent can be achieved with a good game.
To ensure that their profits are based on the right odds, casino owners must employ gaming analysts to research the house edges of each game they offer. The analysis tells them how much they can expect to earn as a percentage of their turnover and the variance, or chance of losing, given the odds. This information is used to develop comp programs for the casino’s patrons. These programs are similar to frequent-flyer programs for airlines and allow gamblers to accumulate points that can be exchanged for free slots play, discounted meals, drinks or shows.