What are online casinos?

Online casinos are casinos that operate exclusively over the Internet. They are simply an online version of traditional brick-and-mortar casinos.

Online casinos offer a wide variety of games, ranging from slots to traditional games like blackjack, poker, and roulette. Some online casinos even offer live dealer games, allowing you to play against a human dealer in real-time.

For the purpose of this course, we will primarily focus on slots and table games.

Are online casinos regulated?

Yes, online casinos are regulated. In states where online gambling is legal, they are required to obtain a license from the relevant regulatory authority.

As of 2023, legal online casino gambling is permitted in Connecticut, Delaware, West Virginia, Pennsylvania, Michigan, New Jersey, and Rhode Island.

In each of these states, regulatory bodies (gaming commissions) exist to ensure that the casinos follow strict guidelines for player fairness and safety. This can include requirements for secure financial transactions, responsible gambling practices, fair gameplay, and prompt payment.

Additionally, online casinos are subject to independent audits and testing to verify the fairness of their games. This means you can deposit, play, and withdraw without worrying about shady business practices you may have heard of at offshore casinos, or casinos operating outside of the U.S.

How do online casinos make money?

Online casinos make money by offering online slots and table games to players and collecting a percentage of the wager in the form of a "house edge". The house edge is a percentage of the wager that the casino expects to win over the long run, based on the odds of the game.

For example, in a typical table game, the casino may have a house edge of around 1%. This means that for every $100 bet by the player, the casino expects to make an average of $1 in profit. When it comes to slots, the house's edge is even higher at around 5%~10%, which means that for every $100 bet a player wagers, the casino expects to make $5~$10 on average.

Thus, online casinos profit from the house edge in each game and they strive to acquire new customers while retaining the existing players through various promotions.