The Casino Effect
Casinos are extravagant temples of temptation where gambling is elevated to an art form. These decadent palaces of opulence, decked out with opulent furnishings and overflowing bars, draw the elite of society from around the world to try their luck at roulette wheels, blackjack tables, poker rooms, and slot machines.
Most casinos are based on chance, and only a few involve some skill. Regardless of the game, however, each has a built in statistical advantage for the house, known as the “house edge” or, in games where players play against each other, the “rake.” The slight advantage generates enough money to finance elaborate hotels, fountains and towers and replicas of famous landmarks.
The earliest casinos were illegal, but as laws relaxed in the late 20th century, they became commonplace throughout Europe and America. Many of them are sprawling, palatial complexes offering a variety of gambling opportunities in addition to five-star hotel accommodations, Michelin star restaurants, designer shops and top-billed entertainment shows. But they are not without controversy: studies show that the net effect of a casino on a community is negative, because it takes spending away from other forms of local entertainment and, by encouraging compulsive gambling, increases medical costs and lost productivity. Some communities are even suing casinos over their negative impact on property values.
