How Do Casinos Make Their Money?


A casino is a place that houses games of chance, such as slot machines, blackjack, roulette, craps and keno. While casinos add luxuries, such as restaurants, stage shows and dramatic scenery to attract players, they would not exist without games of chance. The billions of dollars in profits raked in by casino owners each year come from the gambling business. This article takes a look at how casinos make their money, the history of the industry, popular casino games and how to play them. It also discusses casino security, cheating and the dark side of gambling.

The first casinos appeared in Atlantic City, New Jersey and on American Indian reservations, where they were not subject to state antigambling laws. By the 1980s, casinos were popping up all over America and in many other countries around the world as well. Casinos make their money by charging a small percentage of each bet to the player, which is known as the house edge or the vig. This fee is based on how the game is played and can vary by machine type. It is usually higher on table games than on slot machines, which have a random number generator to ensure that every bet is made fairly.

Casinos are staffed with a large number of people to keep an eye on patrons and prevent them from cheating, stealing or otherwise trying to manipulate the outcome of a game. These include dealers, pit bosses and table managers, who monitor the games and watch for suspicious behavior. In addition, there are “eyes in the sky,” which are cameras mounted to the ceiling that can be focused on particular tables or areas of the casino by security workers in a separate room filled with banks of monitors.

Cheating at a casino is not as common as it once was, when organized crime figures provided the funds for a number of Las Vegas and Reno establishments. Mafia members had plenty of cash from drug trafficking, extortion and other illegal rackets to finance their gambling operations, and they were not afraid of the industry’s seamy image. They often took sole or partial ownership of some casinos, and influenced the results of others by threatening casino personnel.

Casinos make much of their money from high rollers, who gamble with tens of thousands of dollars and spend hours at a time playing their favorite game. These big bettors are rewarded with comps, which can include free hotel rooms, dinners and tickets to shows. Some casinos even offer limo service and airline tickets to their top players. But gambling is not good for everyone, and studies have shown that the cost of treating problem gambling and lost productivity from addicted gamblers more than offset any economic gains from a casino.