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The American Frontier and the Rise of Las Vegas
Across the Atlantic, America's relationship with gambling was developing on a different trajectory. This act paved the way for the creation of Las Vegas as the world's gambling capital. In the 19th century, saloons in the Wild West were the epicenters of card games. It wasn't until 1931 that the state of Nevada took a pioneering step by legalizing casino gambling to counter the economic devastation of the Great Depression. These were often gritty and dangerous places, a far cry from their European counterparts.
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No longer did a player need to travel to Las Vegas or Monte Carlo. This accessibility was the primary driver of the industry's initial wave of growth. Early online casinos were simple by today's standards, often featuring a limited selection of games with basic graphics. However, they offered one thing that land-based casinos could not: unparalleled convenience. A stable internet connection was all that was required to access a world of virtual slots, blackjack, and roulette.
Every casino game is designed with a similar, albeit more complex, mathematical imbalance that benefits the house. But if it only paid out $0.95 for every $1 bet, that 5-cent difference would be its edge. The house edge is derived from the gap between the true odds of an outcome and the payout odds offered by the casino. For example, in a coin toss, the true odds of heads are 1-to-1. If a casino paid out $1 for every $1 bet on a correct guess, it would have no edge.