Casinos are one of a small number of businesses that are considered by many to be “recession-proof”. Now, that doesn’t mean that if somebody sets up a casino, they can immediately turn it into a globally successful enterprise. However, it does mean that there’s a business model and framework that results in profit, especially when it is correctly executed.
House edge and “the house always wins” are two of the most common terms in casino gaming. But how do the mechanics of online casinos work, and how can businesses make a steady profit when large bets are at stake? We must break down each casino table game into different sections to better understand this. Let’s dive in.
Poker
As the clear exception to the rest of the table game options, poker is a game where strategy and skill can determine which players are a cut above the rest. If a professional poker player shows up, they will have a higher chance of winning in a game against a casual player, especially if the game unfolds over the course of a few hours.
So, what do casinos do to negate this and ensure they generate enough money to keep hosting these events, paying their staff and ensuring their online security stays up to scratch?
Although you can find blogs written by experts that dive into much greater detail at https://www.casinomeister.com/blog, three factors help online poker platforms generate profit:
- Hourly rates.
- Tournament fees.
- Pot rakes.
Both pot rakes and tournament fees are upfront costs to the player. The fee varies from casino to casino, but it is set by the provider. Ultimately, the player must pay the required fee before they can sit at a specific table and start playing.
Poker tournaments are the same, and while a chunk of that money will go into the prize pot at most casinos, a percentage will go directly to the casino, and essentially works as a provider fee for setting up the tournament in the first place. Hourly rates usually apply to high-stakes games and require players to keep paying for each hour they’re at the table, to continue playing the game.
There’s a range of poker software available to provide information and insight into how these fees work and how to navigate them as a player. But from a profit perspective, this is the casino’s bread and butter.
Roulette
Unlike poker, roulette has a much simpler profit model for the house – they have the advantage. Whether it is European or American, the type of roulette doesn’t matter. The house still has the advantage because of the green zero on the wheel, and the two zero pockets in American roulette.
Casinos’ profit margins are heavily influenced by the house edge, which is best showcased by the RTP percentage. In American roulette, it is around 5%, and in European roulette, it is around 2.5%.
As long as the table remains busy, pumping out games consistently, then the odds are overwhelmingly in the casino’s favour. Even if somebody has a big win on the table, as long as it’s a busy night, the law of averages dictates that the house always wins.
Blackjack and baccarat
The same principle applies to baccarat and blackjack. Both games have a house edge, and players fall into the gambler’s fallacy trap. In land-based casinos, pit bosses ensure there’s a consistent switch of dealers, and in the case of blackjack, baccarat and poker, that there’s a constant change of the cards used so that sharp-eyed punters can’t pick up on the delivery style and technique of specific dealers.
Other older systems that were used to gain an edge in land-based casinos, including card counting in blackjack, were loopholes that were quickly closed off, and given the mechanics of the technique, they are no longer applicable in online casinos. Basically, there’s nothing you can do that will give you an edge over the house. Play within your means, don’t see gambling as a source of income and enjoy the games for what they are.
Broader variables to consider
While all of these table games have considerable house advantages, there are also a number of components that put the odds further in the casino’s favour. The gambler’s fallacy is a psychological concept that many gamblers can get drawn into, which can cause them to disregard the hard data involved in their gaming.
Those gamblers who don’t understand the house edge, don’t respect it and spend too much time gambling with their winnings are walking a tightrope and are far more likely to give their money back to the casino, whether it is in that session or when they return to the site over the next few days or weeks. However, it is always important to remember to gamble responsibly.
Final thoughts
Ask veteran casino gamers this question, and you’ll hear all sorts of weird and wonderful conspiracies about how online casinos are able to churn out consistent profits. Ultimately, it boils down to the house edge and gamblers who do not know when to cash in their chips and walk away from the table.
That’s not to say there aren’t casino gamers, especially pro poker players, who know how to get one over on the house every now and again, but overall, the house wins – as the saying goes, Vegas wasn’t built on winners.
About The Author
