The Gambler’s Fallacy
Like any other business, casinos make money by drawing in customers through a variety of entertainment and gaming options. Although live shows, lighted fountains, shopping centers and lavish hotels add to the glamour of a casino experience, it is gambling that brings in most of the billions in profits for casinos each year. Slots, blackjack, roulette and a host of other games are what attract gamblers to casinos around the world.
While casino games are not entirely based on chance, the odds are against the player. Casinos have a built-in advantage in each game, called the house edge, that assures them of a certain gross profit. In addition to the house edge, there are other hidden factors that can reduce a person’s chances of winning. These are known as the house rules.
In order to increase their profitability, casinos try to attract the highest bettors possible. To do this, they offer these high rollers expensive inducements such as free spectacular entertainment, limousine transportation, luxury accommodations and more. Even lesser bettors are offered reduced-fare transportation, free drinks and cigarettes while gambling and other comps.
When playing a casino game, it is important to have an idea of how much you want to spend before entering. It is also a good idea to stop as soon as you lose a significant amount of money. A habit of chasing losses thinking that you will soon get lucky and recoup your lost investment is called the gambler’s fallacy and can be very dangerous to your wallet.