Why A Casino Always Makes Money
Ever wondered why people almost always lose money in a Casino (except for the few times when luck works in their favour and they leave richer than when they first entered)? Well, for starters, the House always wins because they rig the game. How?
Take a look at the Roulette Wheel:
Here's how you play: Simply put, you bet whether the ball will land on an even or odd or black or white slot. If your bet is right, you win. If it's wrong, you lose.
Many people make the mistake of thinking that if they place a bet, they have a 50-50 chance of winning. That, is a major MISCONCEPTION.
If you look closely (American Roulette) , there are 18 black slots, 18 red slots and 2 green slots.
Or 18 even numbers, 18 odd numbers and two greens (0 and 00).
This means that if you place your bet on black, instead of having a 50% chance of winning, you actually have only a 47.37% chance of getting what you wanted.
How? Back to 9th grade probability.
18/38 .......because the Casino wins if the ball falls on the two green slots (0 and 00) as well (this is where the game is rigged). So the denominator is made up of 18 black, 18 white and 2 green.
For the Casino the ratio is 20/38 thereby having a win rate of 52.63%. It survives on a very small margin, but nevertheless a positive one. Multiply that by the number of people and amount played each day and you'll know why they are able to serve you free food and drinks.
Long story cut short, you lose because:
1) The game is rigged.
2) You "hope" that you will win at "some point" and keep on losing till that "some point" comes but will eventually leave because there is no "point" in staying there any longer.
So the next time you visit a casino, May the odds be ever in your favour.