Underneath the glitz of flashing lights and free cocktails, casinos stand on a bedrock of mathematics, engineered to slowly bleed their patrons of cash. For years, mathematically inclined minds have tried to turn the tables, bringing their knowledge of probability and game theory to bear on a rigged system. Their best hope, it is thought, lies in understanding the house edge and variance. These are the odds against players in casino games that require some degree of skill, such as blackjack and video poker, or where the casino makes money by charging a commission on wagers, such as baccarat.
The house edge and variance are important for casinos to know because they provide a guideline for what kind of gross profit they can expect to make on each game, given an infinite number of plays. To know this, they hire mathematicians who specialize in gaming analysis. Depending on the size of the casino and the games played, it is possible to have two very different house edges for the same game.
Casinos also use technology to ensure the integrity of their operations. Video cameras are used to monitor casino floors and patrons. In addition, some casinos employ catwalks on the ceiling above the casino floor, allowing surveillance personnel to look down directly, through one-way glass, on activities at table games and slot machines. Casinos have also dramatically increased the use of computers for monitoring specific games. For example, in a game such as roulette where the wheel is numbered, casinos can have electronic systems that regularly monitor each spin, and notify them instantly of any statistical deviation from expectations.
