How the economy and casinos are similar

 Image attribution: Mattbuck; CC BY-SA 3.0

Not all businesses are a perfect microcosm of the larger economy, but in the case of casinos there are some interesting similarities between the two. People are the key driver of commercial activity and are subject to how the economy is administered. If casinos are considered risky places to put money, and the economy has attributes that are the same as casinos, then is economics not like a game at a casino? And is participation in that game more like gambling? The following illustrates just how the economy and casinos are correlated.

Advantage

Casinos are known to have what is referred to as a “house advantage”. This essentially means no matter what the odds on a particular game, they are stacked in favor of the casino in one way or another. For example, the green “0” and “00” on a roulette wheel skew the odds on a red or black bet in favor of the house. To make matters more complicated for the game players, table limits and bet minimums make it more difficult to implement betting strategies such as the “martingale”. The economy also has a house advantage in the sense that owners, employees, government and institutions collectively administer and operate it to their advantage at the expense of less fortunate, or more giving participants.

Uncertainty

Another similarity between the economy and casinos is uncertainty. Both gambling in casinos and participation in the economy involve a certain amount of opportunity risk. Without this element of risk, less or no opportunity to gain wealth would exist, but with it, the potential for exploitation is evident. Both the economy and casinos incorporate varying levels of risk that aren't all that far apart. There are no guarantees in either the economy or at the casino. Those whose skill sets are not commercially viable, and those who are disadvantaged by traits, beliefs and practices that jeopardize their functionality within the corporate structure face higher economic uncertainty.

Manipulation

No one is forced to gamble just like no one is forced to partake in an economy. However, there are certain elements of manipulation that make it difficult not to do either. In a casino, the exits are not clearly marked, there are no clocks, and free drinks and other perks entice patrons to spend the money they have not lost yet. In the economy, the only exit for those who have no money is the street and the advantages of participation include survival, the potential for wealth and an opportunity for happiness. In both cases, it is not unreasonable to say participants are taken advantage of via manipulation of needs and wants.

Employment

Both casinos and the economy are operated by employers and employees. In order to involve oneself in either, an agreement of complicity and compliance is understated. These contracts between employer and employee grant employees access to the benefits of participation in the economy, and in accordance of the rules of the games, business and regulations. Employment is therefore a necessary factor in the successful operation of both an economy and casinos. Furthermore, employment laws that favor a macro-economic commercial viability are quantitatively good for the greater economy because they tend to enrich corporations and their owners, and not necessarily all employees and participants.

Commerce

Commerce is essential in our economy, it is the lifeblood and engine of public administration. Without an economy driven by commerce, the economy would be driven by something else. In ancient Egypt it was agriculture and the institution of the Pharaohs, in pre-constitutional Kingdoms it was the will and direction of royalty, and in modern day, commerce serves the same purpose. Casinos are also highly commercial entities, they are fueled by the inflow of their customers' money, without which they would lose profitability and potentially face bankruptcy. Simply put, both the economy and casinos rely on the principles of commerce to operate either functionally or dysfunctionally.