Casinos makes more money not because of house edge.

[noorman0]

As you say, it's not the full story. There are some casinos that also deviate from the rules of fairness. But casinos in general, their best bets for long term profit are built on a foundation of mathematics, I mean the house edge. Let's say that side is removed, even casinos employing the most sophisticated emotion detectors won't be with their business for long because the odds become neutral. Luck is luck, it never favors whoever keeps emotions stable the most.

[Fortify]

Many people say casinos make money because of the house edge, and sure that’s true, but I don’t think that’s the full story.

You know why they really win more, it’s because they understand human behavior. I’m pretty sure most of us can relate to that. The moment we lose control of our emotions, we start chasing losses, and that leads to gambling more than we were supposed to. That becomes extra money for them. So in a way, what really reduces their income is when players stay in control.

And another thing, those near misses, like an almost win, or even small winnings, can push people to gamble even more. Casinos understand how people feel. The system is designed with house edge to beat us in the long run, but there’s another side running at the same time, and that’s the psychological side of it, almost like marketing.

In my view, casinos are not just selling games, they are selling emotional traps wrapped in entertainment.

It sounds like you're mixing up cause and effect. Your observation that they want to create strong habits so gamblers keep returning to play more does not negate the fact that they make money because the odds are weighted in their favor. They will often try to induce gambling through things like free bets/spins or pushing "VIP ranking" programs where players are meant to feel more special, but all this is only possible because they precisely calculate that if any single player pushes x amount of money through a game over x amount of time, then the casino is bound to profit from it. All the upkeep and marketing of a casino require players to keep spending, which is what a casino strives to do.

[OsaiEmma]

Many people say casinos make money because of the house edge, and sure that’s true, but I don’t think that’s the full story.

You know why they really win more, it’s because they understand human behavior. I’m pretty sure most of us can relate to that. The moment we lose control of our emotions, we start chasing losses, and that leads to gambling more than we were supposed to. That becomes extra money for them. So in a way, what really reduces their income is when players stay in control.

And another thing, those near misses, like an almost win, or even small winnings, can push people to gamble even more. Casinos understand how people feel. The system is designed with house edge to beat us in the long run, but there’s another side running at the same time, and that’s the psychological side of it, almost like marketing.

In my view, casinos are not just selling games, they are selling emotional traps wrapped in entertainment.

This is a good point, but the house edge is what brings the money, everything happening is because of the house edge which gives serious disadvantage to bettors. If the house edge wasn't there to make bettors keep loosing and having those near misses, or accumulated losses that prompts bettors to start chasing loss, then these psychological analysis you've made won't exist. Can we say this is a case of the chicken and the egg, i guess so.

[jaberwock]

While it is true that even with zero edge, there will be some gamblers who will gamble until they lose all they have, I will not be going against that. But also you have to remember, without the house edge, there are some people who will find the most precise way of making money and they will have a higher chance in that case instead of having a house edge.

This is why it's true for some of the people, but it is not true for everyone and we should be careful about it without a doubt. I understand it is not going to be easy to handle, but we should be considering how this could be working very well for us if we are careful. House edge should stay if casinos wants to make money, otherwise we will figure out a way for sure.

[Botnake]

It sounds like you're mixing up cause and effect. Your observation that they want to create strong habits so gamblers keep returning to play more does not negate the fact that they make money because the odds are weighted in their favor. They will often try to induce gambling through things like free bets/spins or pushing "VIP ranking" programs where players are meant to feel more special, but all this is only possible because they precisely calculate that if any single player pushes x amount of money through a game over x amount of time, then the casino is bound to profit from it. All the upkeep and marketing of a casino require players to keep spending, which is what a casino strives to do.

I’m not questioning the advantage casinos already have when it comes to winning, that would be stupid. I understand well that the house edge is there, so they already have the advantage, and no matter what we do, as long as we are not cheating, we will never win in the long run. That’s already an obvious truth. What I’m saying is something else. When you gamble more, you also lose more, and that’s another strategy they use to make people gamble more, which by the way is very effective.

[stadus]

What I’m saying is something else. When you gamble more, you also lose more, and that’s another strategy they use to make people gamble more, which by the way is very effective.

So what you’re saying is that this is part of what casinos do to make us gamble more. Well, that’s actually a good observation. We usually think only about ourselves when we gamble, but the fact that we also try to understand what the casinos are doing means we’re at least trying to see both sides, ours and theirs.

So whatever your point is, I think it’s valid, because casinos are still businesses, and every business wants to improve its profitability.

But in the end, its always at our expense. 

[passwordnow]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

[junder]

I’m not questioning the advantage casinos already have when it comes to winning, that would be stupid. I understand well that the house edge is there, so they already have the advantage, and no matter what we do, as long as we are not cheating, we will never win in the long run. That’s already an obvious truth. What I’m saying is something else. When you gamble more, you also lose more, and that’s another strategy they use to make people gamble more, which by the way is very effective.

Sometimes gambling can be described as a psychological game or a game of mind, so people who gamble more will lose more that’s how they end up being outplayed. Besides, I’ve said before that we should be the ones playing the game, not letting gambling play us.

So, while people’s mindsets are indeed being played with this is done indirectly by the casino because, fundamentally people who bet more do so because of their own mistakes in gambling such as misinterpreting or misunderstanding the game.

[xenomorfo]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

Casinos certainly have many strings to their bow, they know how to entice users and they fall into their trap.
We must be the ones to give ourselves rules and stop playing to make money but for fun and that's it, without putting in too much money and risking getting hurt.

[passwordnow]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

Casinos certainly have many strings to their bow, they know how to entice users and they fall into their trap.
We must be the ones to give ourselves rules and stop playing to make money but for fun and that's it, without putting in too much money and risking getting hurt.

Even if we create that rule for ourselves, we can't follow our own strict rules. Because when we gamble and we're already there, we're the first one to break it due to high emotions. You can't be sure that 100% you'll abide to your own rules and I am sure that each of us are guilty of this. Even I, I had sometime that I would follow my rules strongly until emotions dropped me a lot and violated the set of rules I set.

[TopT3ns]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

Casinos certainly have many strings to their bow, they know how to entice users and they fall into their trap.
We must be the ones to give ourselves rules and stop playing to make money but for fun and that's it, without putting in too much money and risking getting hurt.

Even if we create that rule for ourselves, we can't follow our own strict rules. Because when we gamble and we're already there, we're the first one to break it due to high emotions. You can't be sure that 100% you'll abide to your own rules and I am sure that each of us are guilty of this. Even I, I had sometime that I would follow my rules strongly until emotions dropped me a lot and violated the set of rules I set.

The acknowledgment that emotions are usually more powerful than reason is a deep honesty of a desperate human being. The hardest part is to hold a promise that the heart is racing with the excitement of being nearly truly fulfilled. The fact is that the warm climate in a gaming place can dampen the self defense which has been so hard earned over years. Being human, one may make mistake, but identification of such weaknesses will ensure one becomes more careful in future. Impracticality of personal promises is usually witnessed when lust starts getting into place.

[uneng]

To encourage gamblers playing more is the bait casinos use to fish them. Casinos know gamblers can't beat them on long run, and that is the reason why they encourage gamblers to continue placing further bets, as it's a sure way for the house to make money. There may be losses in the middle of the way, as jackpot winners drain a lot of money from the casinos, but it doesn't change the fact that on long run they are still making superior profit over gamblers.

I guess the best way to understand how this dynamic works for real was through bankroll investment. As an investor the of the casino, you could watch in real time the fluctuations over the casino's bankroll. Sometimes there were indeed losses for investors and the casino, but after few weeks or a month the scenario completely changed on their favour, in a very solid way.

[Don Pedro Dinero]

In my view, casinos are not just selling games, they are selling emotional traps wrapped in entertainment.

That’s right, which is why many casinos used to offer free drinks to customers – until it was banned in some countries – because they know that a customer who has had a few too many drinks tends to gamble more and lose more as well. That’s just one of the additional psychological factors that casinos exploit, alongside the house edge.

I guess the best way to understand how this dynamic works for real was through bankroll investment. As an investor the of the casino, you could watch in real time the fluctuations over the casino's bankroll. Sometimes there were indeed losses for investors and the casino, but after few weeks or a month the scenario completely changed on their favour, in a very solid way.

That’s right, the trend in casino bankrolls is usually the opposite of that for gamblers. You’ve described it well for casinos; for gamblers, the graph would trend inexorably downwards, but with spikes corresponding to big wins or winning streaks. The fact is, the more a gambler bets, the more the casino wins and the more the gambler loses.

[Mandoy]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

Casinos certainly have many strings to their bow, they know how to entice users and they fall into their trap.
We must be the ones to give ourselves rules and stop playing to make money but for fun and that's it, without putting in too much money and risking getting hurt.

Even if we create that rule for ourselves, we can't follow our own strict rules. Because when we gamble and we're already there, we're the first one to break it due to high emotions. You can't be sure that 100% you'll abide to your own rules and I am sure that each of us are guilty of this. Even I, I had sometime that I would follow my rules strongly until emotions dropped me a lot and violated the set of rules I set.

The acknowledgment that emotions are usually more powerful than reason is a deep honesty of a desperate human being. The hardest part is to hold a promise that the heart is racing with the excitement of being nearly truly fulfilled. The fact is that the warm climate in a gaming place can dampen the self defense which has been so hard earned over years. Being human, one may make mistake, but identification of such weaknesses will ensure one becomes more careful in future. Impracticality of personal promises is usually witnessed when lust starts getting into place.

Although most people think that casinos get profits through the house edge, the conduct of players is more significant. As noted, emotions tend to prevail over the logic and players tend to violate their own rules particularly in pursuit of losses or when they feel like they are on the verge of victory. Casinos are created to stimulate such emotions with ambiance and payoffs, inspiring spontaneous choices. The house advantage ensures profit in the long run, and emotional gambling drastically accelerates losses. In practice, it is not easy to keep discipline and knowing what triggers your emotions is as important as knowing the odds.

[Fivestar4everMVP]

It's a common idea that casinos knew that their customers are emotional and that's why they are very sophisticated into this business. As what the good salesmen are telling, they're selling through the emotions of their customers and not with the actual product. And that's not a huge difference from how the casinos foundation are built and that's part of the business wherein they're moving gambler's emotion and turns it into profit.

I may not get the perspective from which you came to this conclusion but then, if I am to look at this from my own personal perspective, I will disagree with you.
Casinos are a business as we all know it, they are designed to make profit, one thing that most gamblers do not understand or fail to understand is that they are not gambling against the casino, gamblers are gambling against themselves, casinos are only providing a platform and whether you win or lose, the casino is making profit.

Its just as some of us usually assume in trading that a trader's loss is another trader's gain, in gambling, a gambler's gain/win/profit is a million of other gambler's loses, that is, when you win from playing a particular game, understand that there are hundreds or even thousands of other players who are playing exactly that same game and they are losing money, what the casino does is take from those other players lose and settle you that won, this is the work of the house edge.

[LUCKMCFLY]

House edge most definitely plays a huge role in creating profits for casinos and that's why all casinos ensure that no matter how lenient they would want to be with their house edge percentage on any game it still gonna be what keeps them in profit at least. But for compulsive gambling attitude it doesn't have anything to do with the house edge, it's a psychological problem within the gambler for which he has to get hold of, because the moment he lost it then he's gonna keep gambling beyond normal and with the casino house edge in place it would always leave him in a losing path while the casino stays profitable.

I've seen attitudes from some players regarding the house edge; some don't even care about it, they just think they can beat it and that's it. They think they can make a difference, but it's impossible. What gives the house edge is the casino business; without it, the casino would be a failure. There would be no entertainment or business, which is why it's so important and so universally accepted.

[Kelvinid]

I think that's still part of the house edge. Casinos make sure that while they are in consistent profits, players continue to lose as well and become more emotional so that they will resort into chasing losses and endure bigger losses in the long run.

And whether we accept it or not, casinos can ruin the psychological aspect of the gamblers by constant losses that could lead to anxiety and depression. Casinos utilize this kind of gambler's state to alter perception and keep them gambling longer. And with that, they can maintain their house edge, that keeps them winning if not all the time, then most of the time.

[Lida93]

Snip

I've seen attitudes from some players regarding the house edge; some don't even care about it, they just think they can beat it and that's it. They think they can make a difference, but it's impossible. What gives the house edge is the casino business; without it, the casino would be a failure. There would be no entertainment or business, which is why it's so important and so universally accepted.

The main edge that the casino have over the gamblers is the ability to keep the gamblers attitude in check, when a gambler losses quite a huge amount of money in gambling, the tendencies that the gambler may continue to engage in continuous betting is very high and I believe the casino operators are aware of this and tend to take advantage of the gambler's ignorance by ensuring that the gambler faces more unfavorable odds in a bid to keep them playing until the gambler loses more and win less than he expects, but the gambler rarely recognises this fact.

[Dr.Bitcoin_Strange]

Casinos use emotions as their main weapon. It would not be wrong if I said that casinos make money based on the emotional control of customers. The more customers lose their ability to control their emotions, the more money the casino will make. If all gamblers learned to control their emotions, the casino's income would almost stop.

Whether every gambler learns to control their emot or not, even if everyone is playing responsibly, the casino's income will not almost come to a stop, the casino has upper hands in winning more than players do. If a million people are playing in a minute, most of the times, they all lose more than they have won and that's how the casino is making their money.

[Odusko]

House edge is not the only means through which the casinos are making their money, do you have several other alternatives from which they can generate revenue operating the casino, such as the referral program, traffic generation, and so many others, gambling platform require money to function and also make money, because of the diverse route to which they can use in realizing their targets for operating a gambling casino and be profitable about it, after which they must have also spent a lot to ensure their casino exist and remain in operation.

What you said could mean ways to drive traffic into the casino, marketing and referral program takes money off the casino, but then we should consider more what actually generate money for the casino, although the end expectations from referral program is to get people to gamble more on the casino and in the end losing to the house, so let me align with that, casino have only ono way money channel that is through the deposits of players and loses their incure from that balance.