A casino (also called a gambling house, gaming room or a junket) is an establishment that offers various types of gambling. Casinos are often combined with hotels, restaurants, retail shops or other tourist attractions. Some states also allow citizens to gamble at tribal casinos. The word casino derives from the Italian “casa” (house) and “gioco” (“game”). The first modern casinos resembled palaces; for example, the legendary Hotel de Monte-Carlo, built in 1863, was originally a private club for European royalty and members of the aristocracy.
Casinos make their money by taking a percentage of the total amount of money bet, or a portion thereof in games where there is some element of skill, such as blackjack and video poker. This is known as the house edge and can be as low as two percent, but when multiplied by the millions of bets placed in a casino each year it adds up to billions of dollars in profits for the owners of the casino. In games where players are not competing against the house, such as poker, the casino earns its money through a commission, or rake, taken by the dealers and some other employees.
Casinos grew rapidly after Nevada legalized gambling in the 1950s. Many were founded by organized crime figures who had plenty of cash from their drug dealing and extortion activities. Mob involvement in the casinos eventually faded as legitimate businessmen with deep pockets realized the potential of these cash cows.