A casino is a place where people gamble money by placing cash or casino chips on a variety of possible random events. The games of chance that most casinos feature are keno, roulette, craps, blackjack and slot machines. While the modern casino often adds stage shows, restaurants and other luxuries to draw in customers, it would not exist without games of chance.
The advantage of each game is defined as the house edge, which represents the amount that a casino expects to lose on the average. The house edge of each game is determined by a mathematical formula that considers such factors as the rules of play, the specific number and type of cards in the deck and how the dealer deals them and other details of the particular game being played. The casino industry employs mathematicians who specialize in gambling and who use these mathematical formulas to calculate the house edges of individual games.
Because of the house edge, it is virtually impossible for a casino to lose money on any game for an extended period of time. In fact, the average casino will make a profit of a few percent of total wagers. In order to keep this percentage high, most casinos will offer free entertainment and lavish inducements to big bettors. They may give them free hotel rooms, dinners and tickets to shows as well as limo service and airline tickets.
In addition, casinos use technology to monitor the results of their games. For example, in a system called chip tracking, betting chips are connected to electronic systems that allow the casino to oversee minute-by-minute the exact amounts wagered. This information is stored on a database and used to quickly discover any statistical deviation from expected results.