The casinos have learned to monitor their customers’ pain points and are now calculating their “predicted lifetime value” of each customer. These value rankings are based on the amount a customer spends. The biggest losers, or “whales,” become the most desired repeat customers, and casinos use these metrics to market aggressively. The casinos’ host services and loyalty programs are now highly sophisticated and provide customers with special offers and incentives, such as free credits, free drinks, and meal vouchers.
The casino’s advantage is small enough to be statistically insignificant, and millions of players can generate enough money to cover the costs of maintaining the facility. This advantage, known as the “rake” or “vig,” varies based on the type of games and players, and the payout percentage. The house edge can be as low as two percent, which makes it a highly profitable business. The percentages, however, can be quite large.
A casino is a public facility in which gambling is the primary activity. Modern casinos may include luxuries, such as free drinks and stage shows, and even shopping malls. Some casinos also host live entertainment, and offer a variety of dining options. Historically, a casino was referred to as a summer house or villa. Although the purpose of the casino has been to entertain, it has now become an important part of the lifestyle of the rich and famous.