The Casino Business Model


Casinos provide visitors with a variety of games of chance and other pleasurable activities such as dining, shopping and entertainment. Many people associate the word “casino” with the gambling establishments that are operated in cities around the world, but the etymology of the word indicates that its origins go back to more modest villas and summerhouses, which were used for social occasions as well as for recreational purposes. Today’s casinos, ranging from massive resorts to small card rooms, are designed to look like an indoor amusement park and offer guests a variety of pleasurable experiences. They bring in billions of dollars each year for the companies, investors and Native American tribes that operate them.

Located in towns with high disposable incomes, casinos are usually attached to prime dining and beverage facilities. They also feature concert venues that host pop, rock and other artists who come to perform for their visitors. The upscale spa town of Baden-Baden, Germany, is one example. Its lavish casinos first opened to wealthy Europeans more than 150 years ago and drew royalty, aristocracy and others who wanted to escape from the drabness of everyday life.

Most modern casinos are equipped with sophisticated surveillance systems. Cameras mounted on the ceilings allow security personnel to watch every table, change window and doorway in the entire facility at once. The cameras can be adjusted to focus on suspicious patrons. The cameras are connected to banks of security monitors in a control room, so that staff can immediately discover any unusual behavior or violations.

In addition to the video cameras, casinos use electronic sensors to monitor tables and machines. These electronic devices help to ensure that gamblers are not cheating or taking advantage of the house by ensuring that the amount of money wagered on each spin of a slot machine is correct. They are also used to monitor the results of roulette wheels and dice games, to quickly detect any statistical deviation from the expected average.

Although some casino games involve skill, most of them are strictly games of chance. The math behind them guarantees that the house will always have an edge over players, and this is known as the house edge. The house edge is a fundamental part of the business model for casino gambling, and it is what drives the billions in profits that the industry brings in each year. The house edge can be offset by comps, which are free goods or services given to players based on their amount of play. These can include everything from free hotel rooms and meals to show tickets and limo service. Players can find out about these programs by asking the information desk or a casino employee. Some casinos even provide airline tickets for their best players.