The Casino Business

A casino is an establishment for gambling. The modern casino often includes entertainment venues such as musical shows, lighted fountains and shopping centers. The vast majority of casino revenue, however, is generated by games of chance. Slot machines, roulette, blackjack, baccarat and craps are among the most popular casino games. While casinos rely on the element of chance to attract customers, they also have built-in statistical advantages for them over the players, known as the house edge. This advantage, which can be lower than two percent, accounts for billions in profits each year for companies, investors and Native American tribes that operate them.

During the 1950s, casino business became so lucrative that mafia leaders, who had plenty of cash from other illegal rackets, decided to get into it. The mobsters were initially reluctant to invest their money in a business with such a seamy image, but they eventually saw the potential for tremendous profit. As the business grew, they took over some of Nevada’s largest casinos and opened new ones.

In the 1970s, Las Vegas casinos were famous for offering free hotel rooms and other perks to their high-spending customers. These perks, which are still available today, are known as comps. In addition to free food and drinks, casinos give out limo service and airline tickets for large spenders. Casinos are also a major source of revenue for many state and local governments, which impose taxes on their profits.