Casino is an establishment where patrons can gamble using games of chance and in some cases with a little skill. The gambling aspect is what gives casinos their billions in profits each year. While musical shows, lighted fountains, shopping centers and lavish hotels help draw in customers, casinos would not exist without the games of chance. Slot machines, blackjack, roulette and craps provide the bulk of the money raked in by casinos each year. Each game has a mathematically determined advantage for the casino, which can vary from less than two percent to as much as 10 percent. This advantage is known as the house edge, and it is how casinos make their money.
Although gambling probably existed long before recorded history, the casino as we know it grew out of a 16th century gambling craze in Europe. In Italy, aristocrats held private gambling parties at houses called ridotti, where they could play primitive poker and other games. These venues were the first casinos.
Today, casinos are primarily resorts that provide many forms of entertainment in addition to gambling. They are also major employers, especially in cities and states with legalized gambling. The casinos are often designed to look glamorous and impressive on the surface, a strategy that helps them attract high-stakes gamblers from around the world.
Casinos depend on sophisticated mathematics to analyze the odds of each game and predict how much money they will make. This work is done by mathematicians and computer programmers who are known as gaming analysts. The information is used to calculate the house edge and variance for each game, which help the casino managers plan how much money they need in cash reserves. Casinos also use this data to develop promotional offers for big bettors, such as free spectacular entertainment and elegant living quarters.