A casino is a place where people can gamble on games of chance or, in some cases, skill. Casinos are typically operated by large companies that organize the gambling activities and may provide additional services such as food, drink, entertainment, and lodging. Casinos are usually located in cities with a large population, such as Las Vegas, Nevada or Atlantic City, New Jersey. The casino industry is a major source of revenue for many states.
Gaming machines such as slot machines, video poker, and keno generate the majority of the income for casinos. Table games such as blackjack or craps involve one player against the house and are conducted by casino employees called croupiers. The house edge, or expected value, of individual games is mathematically determined so that the casino can be assured of a profit on every wager placed by patrons. In games where there is a significant element of skill, the casino earns its money by taking a commission from each hand played, a practice known as rake.
Because the profits from most casino games are largely dependent on luck, casinos often employ mathematicians and computer programmers to determine optimal strategies for individual games. These professionals are referred to as gaming mathematicians or game analysts. The house edge and variance of individual games are then incorporated into the game rules to ensure that the casino is not losing more than it is winning. The mathematical calculations behind this work are complex and the exact numbers vary by game and by location, but it is important for casino managers to know these figures in order to make sound decisions about operations and capital investment.