Argentina | 21/04/2014
In the previous two articles we have tried to produce a general theory of how casinos generate their income through the different games they offer to their customers. In search of this theory we have briefly explored the concepts of Advantage of Mathematics and Expected Value of a given position, we have tried to define what the odds are from a gambling point of view and we have done, by way of example, some calculations regarding the game of roulette using these three concepts. However, I must admit, my dear reader, that so far we have not addressed the central question which answers the question in the title of this series of articles: how do casinos make their money?
Argentina | 03/02/2014
A few days before starting to define the content of this second article, I had a very interesting chat with a friend of mine regarding a machine that was causing some problems in the accounts of one of the casinos he monitors. This friend, one of the most knowledgeable people on casino operations I know, had been following the statistics of this particular machine for several months, and it had become clear that, on more or less a regular basis, the internal counters of the machine were out of phase with the system as a whole , causing differences in the reconciliation.
The operation of slots has become, over the last decades, one of the major sources of income for modern casinos. The establishment and implementation of commercial strategies, rigorous internal controls and an analysis of demand are some of the key elements determining long-term profitability and business growth.