How the House Edge Works in a Casino


A Casino employs elaborate surveillance systems to monitor patrons and games. These systems include cameras that are installed in every window and doorway and are adjusted to focus on suspect patrons. Video feeds of these activities are also recorded for later review. Computer chips inside slot machines determine the payouts. In this way, no one is watching the floor. Nevertheless, it is possible to spot suspicious behavior. The security team at a casino also pays close attention to suspicious behavior in order to deter cheating.

In the 1950s, casinos in Nevada began to expand. While legitimate businessmen resisted entering these institutions, organized crime figures were eager to cash in on the lucrative opportunities offered by casinos. The organizations who ran illegal rackets made plenty of cash and did not care much about the negative image associated with gambling. The money flowed into Las Vegas and Reno steadily, and in some cases, the mafia even purchased part ownership of some casinos.

The house edge refers to the advantage that the casino has over its customers. This advantage allows the casino to profit from the game as long as it pays its winners. However, the house edge can be as low as 0.5%, or as high as forty percent. Hence, it is important to understand how the house edge works in a casino. In the long run, the advantage is in the hands of the casino, and the house edge is the casino’s average profit.

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