A casino is a place where a variety of games of chance are played. It also offers various other entertainment activities. Many casinos are upscale and lavish in nature, and offer restaurants, free drinks, stage shows and dramatic scenery to attract players. A casino may be operated by a private individual, or by a public authority such as a municipality. In the United States, casinos are regulated by state laws.
In the beginning, most casinos were run by organized crime syndicates or mobster families. However, real estate investors and hotel chains soon realized the potential of this gambling industry. They bought out the mobsters and established their own casinos. The mob was eventually forced to abandon its influence over the casinos because of federal crackdowns and the threat of losing a license. In the twenty-first century, casinos have become even more selective about their clientele. They cater to high-stakes gamblers, who make up the majority of their profits. These high rollers are given special rooms, away from the main floor of the casino, where they can wager large sums of money on a wide range of games. They also receive generous comps, such as free spectacular entertainment and transportation.
To maximize their profits, casinos use a system of house edges and variance to ensure that they will generate more than enough cash to pay out winning bettors. Gaming mathematicians and computer programmers perform this work for the casinos. They also determine the types of games to offer, their expected return to player, and the payout percentages on those games.
Casinos also use bright and sometimes gaudy colors to stimulate the senses of their patrons. Red, for example, is a color that is associated with excitement and energy. The walls and floors are often covered in brightly-colored, sometimes patterned carpeting that is designed to stimulate the eye. Most casinos do not have clocks on their walls, because they want their patrons to lose track of time and concentrate solely on the games.
While casinos are a popular source of entertainment, some critics claim that they are not a positive addition to the economies of cities and towns. They say that the revenue they bring in shifts spending from other forms of local entertainment, and that the social costs associated with problem gambling (including treatment for addiction) outweigh any economic benefits. Others argue that the net effect of casinos is negative, because they attract gambling addicts from outside the city or state and divert local business from other industries. In addition, studies have shown that compulsive gambling reduces a community’s productivity. These critics call for tighter regulation of the gambling industry. These criticisms have led some states to limit the operation of casinos. Others have banned them entirely. Nevertheless, in the United States and around the world, casinos continue to grow in popularity and profitability. As of 2002, about 51 million people —a quarter of the population over 21 —visited a casino.