Although musical shows, lighted fountains and other spectacles attract people to casinos, the majority of their profits come from games of chance. Slot machines, blackjack, roulette, craps, baccarat and more are what give casinos the billions of dollars in profits they rake in every year. [Source: Schwartz]
Most casino games are based on luck and skill, but some of them also involve a high degree of randomness. Casinos make money by charging players a small percentage of their bets to cover the casino’s built-in statistical advantage, known as the house edge or vigorish. Depending on the game, this edge can be quite low (as little as two percent), but when multiplied by the millions of bets made at a casino each year, it earns it enough to pay for hotels, shopping centers, restaurants and other amenities.
Because so much money is handled within a casino, patrons may be tempted to cheat or steal, either in collusion with others or independently. To help prevent this, casinos usually have security measures in place. A physical security force patrols the casino and a specialized surveillance department oversees an elaborate closed circuit television system, sometimes called the “eye-in-the-sky,” that lets staff members watch each table, window and doorway on a bank of video monitors.
Some casinos also offer comps to large bettors, which are free or discounted goods and services like hotel rooms, dinners, tickets to shows and limo service. However, there’s a darker side to the casino business: studies show that gambling increases the risk of addiction and that losses due to gambling addiction outweigh any economic benefits casinos might bring to their communities.