A casino is a facility for certain types of gambling. It is most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions. Many states have laws regulating the type and amount of gambling allowed in casinos. Some countries have legalized casinos for only certain kinds of games, and some have banned them altogether.

While musical shows, lighted fountains and elaborate hotels may draw in the crowds, a casino would not exist without its games. Slot machines, blackjack, roulette, craps, poker and other table games are what make up the billions of dollars raked in by casinos each year. This article will explore what makes these entertainment venues tick, how they make their money and the dark side of casino gambling.

How do casinos persuade people to gamble?

While some games have a significant element of skill (like poker or video poker), most do not. Regardless of the game played, most have a built in mathematical advantage for the casino, known as the house edge or expected value. This advantage can be tiny, lower than two percent, but over the course of millions of bets it adds up. Combined with a small percentage taken as commission by the casino on winnings from its other patrons (known as vig or rake), this ensures a net profit for the casino.

To maximize revenue, casinos often offer special perks to big bettors. These inducements can include free show tickets, cheap hotel rooms and even reduced-fare transportation. Casinos also invest in high-tech surveillance systems that can track and record all transactions.