[Sherman]

[ QUOTE ]
"I mean, they could make more money according to your theory if they just "rigged" the games to win every hand/pull. So why don't they? Because it is long term -$EV.
"
its called government intervention. If you think unregulated casinos would have as "fair" games as those that are unregulated u r crazy.

[/ QUOTE ]

Well two people have pointed this out so far and quite simply they are missing the point.

If a casino game was rigged to win every time would anyone play? NO! Period. End of Story.

Everything we know about conditioning and learning theory suggests that periodic rewards are necessary to keep people playing. You have to let the gambler win sometime. If you don't, he won't come back.

While gambling regulations might keep the casino's edges where they are in a legal sense, there is only so much optimal edge a casino can obtain and still expect to make the most long term profits. You have to reward people to keep them coming back. It's the same reason poker games are profitable for a gambler and chess games are not.