Gambling was illegal for most of the nation’s history, although the casino games were sometimes played with local law enforcement present. As a result, it was not allowed to grow into a legitimate industry. It was not until 1931 that casino gambling was finally legalized in Nevada. This act effectively stunted the growth of the industry, and it took another 37 years for New Jersey to legalize casino gaming. Even after this, the country’s casinos were still illegal.
Since gambling is such a lucrative business, the casinos have adopted several measures to ensure that their patrons don’t lose money. Using various studies, the Wall Street Journal gained access to a private database that revealed that 13.5% of gamblers lost money in casinos. As a result, casinos are more likely to offer extravagant inducements to big bettors, including reduced-fare transportation, free cigarettes and drinks, and even free hotel rooms for large bettors.
In order to make money, a casino needs to know the variance and house edge of various games. These numbers tell the casino’s expected profit and how much cash it should keep in reserve. The mathematicians and computer programmers who perform this work for casinos are called gaming mathematicians and analysts. Most casinos don’t have in-house expertise in this area and often outsource the work to specialists. When the gamblers lose, they are usually robbed of their winnings.