A casino is an establishment where gambling activities take place. It offers a variety of games of chance for public entertainment and earns money through a commission on each bet placed, known as the house edge. The casino advantage can be low, less than two percent for most table games, but it adds up over millions of bets and makes casinos profitable. Casinos may also offer other services such as restaurants and retail shops. Some casinos are part of a resort or a luxury hotel, and some are located in cities that have a large tourist industry.
Casinos have long been an intriguing feature of the modern world, romanticized in film and literature with images of high-stakes tables surrounded by elegant guests in tuxedos and evening dresses. Their glamour and exclusivity, along with the sense of power and excitement they evoke, attract gamblers from all over the world.
Beneath the varnish of flashing lights, free drinks and stage shows, however, casinos are based on a bedrock of mathematics that is engineered to slowly bleed their patrons’ bankrolls. For years, mathematically inclined minds have tried to turn this rigged system in their favor, employing the principles of game theory and probability to find weaknesses in the underlying math that determines whether they will win or lose. The results of these efforts have been used by investment banks to manage casino investments and by gaming mathematicians to develop strategies that maximize their profits.