Casinos have a wide range of glitzy amenities to lure in gamblers, from musical shows and lighted fountains to shopping centers and lavish hotels. But the majority of their billions in annual profits come from gambling. Slot machines, blackjack, roulette, craps, baccarat and other games of chance provide the excitement that draws people to these entertainment meccas.
A key part of the casino’s business model is to ensure that it, not its patrons, wins most games. Each game has a built-in advantage, or house edge, that determines the average gross profit. In addition, casinos monitor the behavior of their patrons and try to spot cheating or other unethical activities by analyzing patterns in their betting habits.
To keep people coming back, casinos offer free and discounted food, drinks and show tickets. They also use their patron database for mail advertising. Some casinos also have loyalty programs that reward frequent players with “points” that can be redeemed for cash or goods.
In the past, organized crime figures provided much of the money that kept casinos in business. But by the mid-1950s legitimate businessmen with deep pockets began to invest in Nevada’s gambling businesses. The mob, which had plenty of money from drug dealing and extortion, lost control of its earlier hold on Reno and Las Vegas. Today, real estate investors and hotel chains own several of the nation’s largest casinos. Federal crackdowns and the risk of losing a gaming license for even the slightest hint of mob involvement mean that legitimate operators can’t get too cozy with organized crime.