How do Casinos make money? Part I

August 2, 2021
August 2, 2021 game@admin

Have you ever been to a casino? Apart from the fun and thrill of games, have you observed how it works?

Next time you visit a casino, observe how it controls your experience. From the game rules, music to the flooring, carpets, colors, lights, and services – everything is intricately designed to hold the customers for a long time. Casinos are designed such that customers stay for long and the betting continues.

Let’s talk about 3 facts of the casino model:

 Security: The casino industry earns more than $100 million a year. It is no surprise that security plays a crucial role in the casino business. Casinos are designed keeping in mind their security.

The key element of security is ‘surveillance’. Casinos constantly observe all your movements so as to prevent any cheating and fraud. Whenever cheating is detected, the police are immediately informed.

Video cameras, also known as the ‘eye in the spy’ are installed everywhere to monitor the area with a 360-degree view of the place. New technologies like face detection and radio frequency identification are adopted to prevent theft of chips etc.

Next time you check in to a casino hotel, know that they have all your information.

Stay and play: Casinos may have different interiors, but their objective remains the same – to get players to stay longer. Have you ever seen a casino with open windows or a clock? The lighting at casinos is controlled in a way that one loses the concept of time.

Casino designer Bill Friedman says, “Layouts matter a lot in casino design”. He says that some casinos have small maze-like passages where directions keep changing, and long passages lead one from one corridor to the other. This is done to limit the line of vision of casinos.

“Casinos are designed to tempt customers and build intimacy”, says Friedman. Low ceilings and spaces divided into small segments make players feel comfortable. Modern casinos play on the concept of “A comfortable player is a continuous player”.

Fast music, colorful lights, and aromas that trigger feelings of excitement are utilized by casinos to manipulate emotions and give a sense of abundance to the players.

Moreover, free alcohol and complimentary rooms play a huge role in attracting more players.

House Edge: House Edge means that the casino will always have some profit from your bets. The winning chance of the casino always remains higher than the probability of the player winning the game. These are called ‘Odds’. ‘Odds’ make sure that the chances of players winning and the potential payout is always lower.

Casinos may set different odds for different games. Games like Keno and Slots have the lowest odds at around 35%. Cards and Dice games have much better odds for players. For instance, in Blackjack, the house advantage for skilled players is 1-2% and around 20% for new and moderate players.

Casinos usually don’t reveal their odds. Since casinos function just like other businesses, their motive is profit. The aim of casinos is to win as much player money as possible. Casinos will never bankrupt a player in a single sitting but will make sure that the player leaves as little money as possible.

Casinos also have an extra house edge. The longer you play, the odds are more likely to match the house edge. This means, no matter how much you’ve earned, the house edge will ultimately pull you down. That’s why casinos make sure you stay in the game with views of the outside blocked and free drinks and snacks for first-timers.

It is important to remember that all this is just a way to lure you. The question is, are casinos bad? Absolutely not, every business tries to create an environment and casinos are no different. As long as you keep your judgment intact, casinos can be quite an exciting experience for you. If you quit at the right time, you can leave with profits. If you preplan the bet limit and stay within it, the chances of you earning profits becomes higher.

If you know when to quit, you’re bound to be rewarded.

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