Beneath the flashing lights and free cocktails, casinos are built on a bedrock of mathematics engineered to slowly bleed their patrons of cash. Even so, many mathematically inclined individuals have tried to turn the tables by using their knowledge of probability and game theory to outwit the rigged system. But the best strategy is to avoid gambling altogether.
Casinos make money by taking advantage of people’s tendency to gamble more on games they think are fair than those that aren’t. Each of the games they offer has a built-in statistical advantage that earns them a gross profit, even when the majority of bets lose money. The mathematically determined advantage of each game is called the house edge, and it can range from lower than two percent to higher than five percent depending on the rules, the type of machine (video poker vs. slots) and how skillfully players play the game. In games that involve some degree of skill, like blackjack and poker, the house takes a commission on each bet, which is called the rake.
To maximize their profits, casinos try to lure in high rollers with expensive inducements such as free spectacular entertainment, limousine transportation and luxurious living quarters. In addition, they often provide free food and drink to keep gamblers on the premises longer. The use of chips instead of real money also makes players less concerned about losing money. Security measures include cameras and surveillance systems. Casinos follow patterns in the way dealers shuffle and deal cards, place betting spots on the table and react to winning and losing bettors; if any behavior is out of the ordinary, it is easy for security personnel to spot it.