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Casinos have a very delicate balancing act they must manage. First of all, they want to make money. However, people just don't like to lose money. In order to make money, the casino games have to be in favor of the house and not the player. Why don't casinos tilt the games even more to the house's favor? If they did, their expected value would certainly go up. On the other hand, attendance at the casino would go down.
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No matter what the odds, a casino can't make money unless they can keep people coming through the doors. Setting the games up so that there are still winners, some occasionally big, is good for attendance. You might even know someone who has made a large amount of money at a casino.
In this section, we will bring together our ideas about calculating probabilities from Unit 2 along with the concept of expected value in order to be able to analyze a game of chance. We begin where we left off in section 3.1. A fair game is a game in which neither the player nor the house has an advantage. In other words, when all is said and done, the average player will not have made or lost any money whatsoever.
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