Casinos are a fun place to spend time, but they also have a dark side.
The games of chance that keep a casino going are the source of billions in profits. The games of blackjack, roulette, craps and slots are among the most popular.
They’re not just about chance—they’re also designed to make you feel good. Whether it’s music, upbeat lighting, free drinks, a sense of community or even the scent of cologne, casinos use psychological tactics to get people to spend money.
These tactics help a casino attract and retain guests, but they can also hurt the bottom line if not managed correctly. To help casino managers understand the math behind their games and how it relates to profitability, the American Gaming Association (AGA) publishes a guide entitled Casino Math: A Guide for Professionals and the Public.
It addresses issues like house advantage, win rates, game volatility and player value and comp policies. It also discusses how a casino’s pricing errors and regulatory issues can affect its profitability.
Ultimately, the goal of any gambling establishment is to keep its customers happy and coming back. That means balancing variety and value to appeal to all types of players.