A casino is a public place where games of chance are played. While elaborate buffets, musical shows and lighted fountains might draw in the crowds, casinos would not exist without gambling games. Slot machines, blackjack, roulette, craps, baccarat and other gambling games provide the billions in profits that casinos bring in every year. Almost 51 million people—a quarter of the country’s adults over 21—visited a casino last year. These visitors generated more than $25.7 billion in revenue for companies, investors, and Native American tribes that own casinos. They also brought in state and local taxes and fees.
Most gambling games have some element of skill, but the house always has a mathematical edge over the players. This advantage, which is not necessarily predictable, can be determined by the rules of the game, the number of players, and their betting patterns. Casinos often charge a percentage of the winnings to gamblers—a fee known as the rake. Some casinos give away complimentary items or comps to gamblers who spend a lot of money, such as hotel rooms, food and drinks. Comps are usually based on the amount of money gamblers win or lose at a particular game or in a given period of time.
Casinos began to appear in the United States after the legalization of gambling in Nevada in the 1950s. Until then, most Americans visited illegal pai gow parlors in Chinatown and other gambling dens. Mobster money flowed into Las Vegas and Reno, but legit businessmen were reluctant to invest because of the taint of crime associated with casinos. Real estate investors and hotel chains saw the potential and started opening their own gambling establishments. Because of federal crackdowns on organized crime, the mafia lost its grip on many casinos.
Today, the gambling industry is as big as it has ever been. Casinos are found all over the world, from the high-rise resorts on the Las Vegas Strip to the small card rooms in New York’s Chinatown. Unlike their early counterparts, which were usually run by family members, today’s casinos are often owned by companies and operated by professional managers. The casinos are also much safer than they were in the past because of improved technology and increased security personnel. However, the danger of gambling addiction still exists and studies show that the net economic impact of a casino on a community is negative. This is due to the shift in spending from other forms of entertainment and the cost of treating problem gambling. Moreover, casino revenue does not offset the loss in productivity caused by gambling addicts. For this reason, some communities have banned casinos.