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How do casinos make money?

Casino gaming has been on the rise for a considerable time now and while players continue to flock to both land-based and online casinos, few stop to think about how a casino makes its money. With local food traders, we know they charge a high enough amount to more than cover the cost of goods sold and labour costs. Like any business, a casino needs to turn a profit and both the physical casinos and the online operations have substantial costs on their balance sheets. So, while many might consider the answer to be simple, how casinos make their money is actually more complex than you might think.

The house edge

The house edge is the advantage a casino has over a player in each and every game available to play. Casinos don’t make money when a player makes a deposit, they are simply holding the cash, they make money through players playing the games with that unavoidable house edge.

The house edge is the mathematical casino benefit that the gambling game has over the player as they play the game. This benefit is in a guaranteed percentage of revenue for the casino over time. The ‘over time’ part here is critical, as it’s entirely possible that in the short-term the cards just don’t fall for the casino and they find themselves needing to make substantial payouts.

Play on

While the house edge for each game does essentially account for a casino’s profit, it’s not the full story. The games guarantee a certain revenue, but casinos need a certain quantity of players to be able to cover their costs and turn a profit. This is why casinos focus their activities on attracting new players, retaining the players they have and keeping the punters playing as regularly as possible. For an example of how online casinos do this, click here to visit PlayOJO Casino where you’ll find a welcome package, specials and kickers. These might have different names at a different casino, but all serve the same functions.

The welcome package is generally very generous, serves to gain new players and crucially have those new players provide personal information and make a deposit. The kickers and specials are sometimes referred to as loyalty bonuses and the generosity of these will often be dependent on how often you play. Many businesses will give you free items, listed on sites like Latest Free Stuff to keep you loyal and in a land-based casino, you’ll encounter complimentary items or comps that serve the same purpose of providing players with something to start playing and keep on playing.

So the house edge and plenty of players will make a casino profitable. Some might be put off gambling knowing that the casino is guaranteed a return, but generally, people accept that they need to turn a profit and that the experience is often worth giving the casino an advantage. Some games, particularly blackjack, give players the chance to reduce the house edge by employing a basic strategy. Therefore, some research can definitely assist you next time you stroll or click into a casino, but if you’re gaming on a budget, make sure you stick to it.




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