When it comes to marketing and customer retention, casinos are the experts. They know that a high roller may not spend tens of thousands of dollars on his first visit to Las Vegas, but once they feel at home there, they’ll stay. Casinos know this, and they focus their marketing and customer retention efforts on appealing to the emotions of top customers. They also have to be able to appeal to their emotions, which means offering freebies and other perks to loyal customers.
Today, there are over 1,000 casinos in the United States, with the number rising as more states legalize casino gambling. Currently, 40 states have some type of casino gambling. Casinos outside of Las Vegas and Atlantic City are mostly due to Native American gaming. While casinos in larger cities aren’t considered defining features of these locales, the Las Vegas Valley has the highest concentration of casinos. New York City, Atlantic City, and the Chicago area follow behind Las Vegas as the top three revenue generators.
A casino’s house edge and variance determine its profit percentage and cash reserves. Gaming mathematicians and computer programmers do this work. Most casinos do not have their own staff members trained to analyze the games, so they outsource this work to experts. But a casino that wants to be competitive is not likely to hire its own gaming experts. If they do, they have to hire outside experts. In the end, the result is the same: an attractive casino, a lucrative one.