The Casino House Edge
The 21st century casino is a gambling institution where patrons are seated at tables and can place their bets on games. A patron can never win more money than the casino can afford to lose, as long as he stays within the set limit. Every game in the casino offers a mathematical expectation that the house will win. Although casinos rarely lose money on a single game, they frequently offer lavish inducements to big bettors, such as free drinks or cigarettes.
Gambling predates recorded history. The use of primitive astragali, cut knuckle bones, or carved six-sided dice, were dated back thousands of years. Casinos became an important part of the gambling industry in the 16th century. The Italian aristocracy held private parties in their ridotti, which were private clubs reserved for the rich. Gambling was the most popular pastime for the nobility, although they knew when they could expect the Italian Inquisition.
The house edge in casinos is calculated based on the average gross profits for the casino. This house edge is the percentage of the casino’s profit that is gained from the winnings of the game. For example, a casino with a low house edge can only make a few cents per dollar of bet, while a casino with the highest house edge could earn fifteen to forty percent of the money bet. The bottom line is that the house edge of casinos is designed to keep their profits high and make the players lose money.