The House Advantage: How Casinos Use Psychology to Keep You Playing

All casino games are designed to give the house an edge, without exception. The edge is there to make money for the casinos, and give them a sustainable business model. It does not rule out the possibility of you making a profit off your gaming, but the odds are not in your favour.

Luck plays an important part in what will happen, something that is neither in your hands nor the casinos. However, psychology can also have a massive impact on players, especially when they are taking bigger risks or spending large sums of money. We can argue that casino games are designed to enhance these psychological effects, but we are just as responsible for fostering them through gaming. Here, we will look at the important psychological aspects of gaming.

Does the House Always Win

The house always wins, or so goes the famous saying. However, it is only true if you keep playing until you lose all your money, something in your control and not the casino’s. House edge does not specifically dash your chances of winning, it just means that you will have to win more times than is actually probable to maintain a profit. The simplest example is with a bet on the colour of a drawn card. In a standard deck of cards, we have 52 unique cards, 26 red and 26 black.

The odds of you drawing a black or red card are perfectly even, yet the casino will not offer you even money on your bet. Instead, it may offer odds of 1.9 (-110 in American odds). Let’s presume after each hand the deck is reshuffled, to ensure the draw is always a 50-50 chance of landing on either colour.

You play 10 rounds, betting on black each time and you win 5 from the 10 rounds. Spending $10 per round, you have spent $100 in total and won $95. Despite the fact that there is a 50-50 chance of winning and you have won 5 from 10 rounds, you only have $95 in your bankroll. That is, you are down by $5. To break even, you should win 52% of the time rather than 50%.

The house does not always win, but if you were to play 200 rounds and the outcome was mathematically perfect (100 red 100 black), you would be down $100. You have to beat the real odds of winning to make a profit.

Tricks or Fallacies

It is important to make a distinction between what we would consider a trick and what is a fallacy. Tricks imply the casino is deceiving you to play more, whereas a fallacy is a mistake on our part. We want to believe we can hit the jackpot or come into a winning streak to bring huge profit. Online and landbased casinos never trick you as such, the rules of each game are written in the terms and conditions. They don’t go out of their way to reel in players and steal their money. The games are designed in a way that they will bring the house a profit.

But the allure of winning big money is enough to catch anyone’s attention. Take lottery players. The chances of you hitting the Powerball (5 numbers 9 1 Powerball) are 1 in nearly 300 million. Lottery players know that their chances of winning are next to nothing, yet they still spend money on the off chance of something miraculous happening. One interesting thing about these players is that you rarely find a lottery player getting addicted.

Lottery players generally do not fall for the same fallacies as casino game players. Casino gamers have a far better chance of winning their respective games, and in some cases, players tend to overestimate their chances of winning or misjudge the odds. The social impact is another important aspect to consider. Lottery players don’t really have the same interactions or have “gaming sessions” as sports bettors or casino gamblers. The fear of missing out or peer pressure to gamble is far more evident in casino gamers or sports bettors.

Psychological Pitfalls for Gamers

Games that have big payouts are always going to play with our understanding of the odds. The dazzling lights in a game of slots or the big jackpot display catch our attention and our curiosity.

One of the main fallacies that players continue to fall for is the illusion of control. Don’t get us wrong, you can directly influence the outcome of a hand of poker or whether you win or not in a game of blackjack. But you cannot rule out the fact that luck still plays the biggest role in deciding the outcome. You can hone your blackjack skills or optimise your video poker strategy, but neither will guarantee wins. They will reduce the house edge considerably, but not to the point that the odds swing in your favour.

Psychological Tricks Used by Casinos

Casinos don’t really force us to play their games, but they can certainly make the gaming seem more appealing. We are not talking about dirty tricks like calibrating gaming machines to bring us near misses or rigging any of the casino games. These are illegal, and licensed casinos are not allowed to supply games that do not meet the game integrity standards in the industry.

No, instead casinos can offer you bonuses to catch your attention. They aren’t just there to win new customers or to make money off you. Casino bonuses generally are offered to encourage you to play more. The more time you spend at the casino, the more likely you will spend more money.

Loyalty Programs and Bonuses

Rewards programs do not really extend your gaming sessions, but casinos can use them to renew your interest in playing. How many players would turn down a bonus spin offer? You receive a notification that your bonus spins are available, and all you need to do is log into your account and use them. It seems like free money, and that it is, but once you are in you may be compelled to continue playing and spend real money.

Existing customer bonuses are one of the most powerful tools online casinos have in their arsenal. Through recurring promotions and the goodies, we can incentivise each gaming session. You will want to log in to pick up your daily rewards, make more deposits to redeem deposit bonuses, and play the games needed to enter leaderboard tournaments.

Big Jackpots and the Actual Probabilities of Winning

Playing patiently is the best chance you have of building a bankroll. While there are chances that you may run into a sizable win along the way, you have to keep a steady hand and avoid making reckless decisions.

Yet for some gamers, the jackpots are the most fun to play. They, like the lottery players, enjoy the thrill of anticipation and playing risky games. Casinos know that progressive jackpot games and other large prize pools are popular among players. They are in high demand, which is why a lot of operators go out of their way to specially pick hot jackpot games.

The reality is that most players will not hit jackpots in their gaming. But there will be no shortage of players who are interested in playing. Especially progressives, where the top prize increases constantly. In terms of odds, playing for jackpots or side bet progressive jackpots is not worth it.

The chances of winning are far lower than the prize money would suggest, giving the house a tremendous edge. Yet psychologically, we generally don’t think in terms of how unlikely we are to win jackpots. Instead, most players stake bets in progressives as lottery players would. It is an additional expense, so that you are in the running to win, and perhaps one day it will pay off. Bettors with expert strategies rarely spend money on progressives.

How to Play Safely

While there are several ways through which casinos can entice you to play more, they also provide tools through which you can control your gaming time and spending. Gambling laws from around the world are strict on this matter, and all licensed online casinos must comply with player protection legislation.

You can manage your spending by setting deposit limits. When you have topped up with an amount equalling your limit, you won’t be able to spend more. That is, until the timeframe has expired and then you can spend again. Deposit limits can be set on a monthly, weekly or even daily basis.

Another tool is reality checks. These are notifications that tell you how long you have been playing. You can set up these notifications to keep track of your gaming, or even put a limit on your game time. You will be notified before you reach the limit so you can finish the round you are playing.

Concluding House Edge and Psychological Tricks

Players must understand house edge, it is an essential part of casino gaming. In cases of traditional casino games such as roulette or blackjack, the games themselves are designed to favour the house. Games such as slots use powerful algorithms to randomise each outcome, and the house edge is not easy to precisely calculate. Sure, RTP does give us an impression, but it is a theoretical value.

Understanding that the house has the edge is crucial to keeping a level head. By using responsible gambling tools and maintaining a budget, you can avoid going bust, and know when to quit with your games. When luck does turn in your favour, don’t waste it. Don’t chase losses or let biases convince you that the next big win is just around the corner. And remember, to always play for fun.