Eeny, Meeny, Miny, Moe

I want you to imagine that I have never heard of a casino. I have no idea what a casino is, and it is your job to explain it to me. So, you start by explaining that a casino is a business, a business made up of a collection of games, games of chance. These games pit the customer up against the casino and wagers are placed, a type of organized gambling.

If you left the description there, you would have me scratching my head. Why? Because if these are games of chance and the customers compete with the casino, how do they stay in business? How do they make a profit? There is a very important detail that can’t be left out – each of these “games-of-chance” are slightly tilted in favor of the “house,” the casino. The probability, even if ever so slightly, favors the casino to win.

Slightly favorable odds, multiplied by a high volume of customers and wagers, makes for a profitable business.

Links mentioned in this episode:

• http://thoughtsonmoney.com
• http://thebahnsengroup.com