As with any business, casinos have a model in place that ensures their profitability. In gambling, this is known as the house edge. This means that over the long term, a casino will win money on most of its games. In games of skill, such as poker, the house earns a commission called the rake.
In order to make sure that they are always in the winning column, casinos employ mathematicians and computer programmers to calculate the expected value for each game. They use these calculations to determine the minimum bet amount for each game and to help them manage their cash reserves. The mathematicians and computer programmers who do this work are known as gaming mathematicians or gaming analysts.
When casinos first appeared in America, they were usually located in cities or towns with large numbers of tourists and wealthy people. For example, the elegant spa town of Baden-Baden first became a gambling destination 150 years ago, drawing royalty and aristocracy from Europe. Today it has a casino that is among the most beautiful in the world.
Something about gambling seems to inspire cheating and theft. As a result, casinos spend enormous amounts of time and effort on security. Security starts on the casino floor, where employees watch over games and patrons for blatant signs of cheating. Dealers are heavily trained in the rules of each game and can spot a variety of tricks, such as palming or marking cards. Pit bosses and table managers have a broader view, watching for betting patterns that might signal cheating. They also monitor each game’s turnover and average payoff percentage.