Casinos are venues that draw in billions of dollars per year. It is estimated that over a million people visit the Las Vegas Strip and Macau combined, which is more than every other casino destination on the planet put together. But how do casinos make so much money from just bets?

The House Edge

To understand how casinos make money, it is crucial to understand the concept of the house edge. If you are a regular casino customer, you might have come across this term at least once. House edge, or house advantage, is a term used to represent the mathematical advantage that the casino has over the players. The house edge changes per game and also from one casino to the next.

Another interesting thing about the house edge is that the house edge increases for every loss you incur. This means that the player loses more money the longer they keep playing the same game.

Slot Machine

The Slot Machine Trap

Slot games are arguably the most popular game at every casino. There will be over ten times the number of slot games than table games at any casino at any point in time, and with fairly good reason. Slot games are incredibly entertaining little boxes where you can bet money on the outcome of the games you play and reap a profit. However, the catch is that slot games have the highest house edge and consequently the lowest return-to-player (RTP) percentage than any other game in the casino. While other games at the casino have a maximum house edge of 4-5%, slot games hardly ever have a house edge lower than 7%. This, in addition to the increasing house edge per loss, means that players will be providing the casino with a lot of money per game.

Is This A Bad Thing?

A person who does not understand casinos and the culture that follows them will see this as a cheap trick and a bad thing. However, casino goers will undoubtedly agree that this is not a big deal. This is because most people who go to casinos simply see them as entertainment venues, much like going to the local fair and buying handicraft toys or going to the theatre to watch a movie. They do not consider this a means of making money, and rightfully so. Casinos are, at heart, entertainment venues and are nothing more than that. If you win a grand prize, good for you. If not, try again. If you don’t want to, that’s fine too.



So, casinos make a lot of money just through their bets. They make so much money, in fact, that they are able to provide bonuses such as free food, drinks and occasionally even free bets. Again, it is always to be kept in mind that casinos are not venues where you should try to make money but enjoy the experience.