FOR DISCUSSION: Where the Profit Comes from???

As mentioned in the introduction part, the online casinos had earned huge amount of profit in the pass year and the number still keeps on increasing today. Most people may be wondering how they earns and where these profit comes from. The followings explain how they generate profit from the players:
1. Losing of bet:
Some casino’s games involve the play of dealer and players where dealer is allowed to become the player and have the equal chance to win the game. For this type of game play, the most common and direct way for them to earn is through the losing bet of players. In addition, sometimes the game structure gives the dealer a superior advantage in winning the game (English Harbour Casino 2010). For example in blackjack, the dealer can directly win the bet without the need to play as long as the player’s card bursts. Players lose their bet in full amount and that is how the online casino gained significant profit from them.
2. Online Casino's 'House Edge'
Based on OnlineCasinoAdmin 2009, the house edge is the difference between the winning odd and the actual payout odd which determined by the casino. For example, when the bet is $1, and the wining payout is $0.98, then the 2% ($0.02) is the ‘house edge’ earned by the casino. So, no matter a player wins or loses in a bet, the 2% profit is guaranteed for the casino. The amount may look little here but it may be different when it deals with multiple and heavy betting players.
3. Commissions
Another easy earning generated by online casino is through the collection of commission or known as the ‘rake’. It is collected based on the fixed rate set by the casino itself or the percentage of total amount bet in every beginning of the round. This method is usually used in the game where the house only acts as the dealer. They do not participate and thus are not capable to win the game such as the online poker (English Harbour Casino 2010). But, the commissions are assured for the casino as every player has to pay for this before the game commence.


Reference:

English Harbour Casino 2010, How Casino's Profit, viewed 8 October 2010,
http://www.englishharbour.com/articles/how_casinos_profit.php

OnlineCasinoAdmin.com 2010, The Profits of Online Casino, Viewed 8 Oct 2010, http://www.onlinecasinoadmin.com/blog/2010/05/the-profits-of-online-casino/