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Casinos do not have in-house expertise in this field, so they outsource their requirements to experts in the gaming analysis field. The mathematicians and computer programmers that do this kind of work are called gaming mathematicians and gaming analysts. It is the high ratio of short-term standard deviation to expected loss that fools gamblers into thinking that they can win. From the formula, we can see that the standard deviation is proportional to the square root of the number of rounds played, while the expected loss is proportional to the number of rounds played. The binomial distribution assumes a result of 1 unit for a win, and 0 units for a loss, rather than −1 units for a loss, which doubles the range of possible outcomes. The standard deviation of a simple game like roulette can be calculated using the binomial distribution.

It is important for a casino to know both the house edge and variance for all of their games. (In games such as blackjack or Spanish 21, the final bet may be several times the original bet, if the player doubles and splits.) The house edge, or vigorish, is defined as the casino profit expressed as a percentage of the player’s original bet. There are also hybrid games, as in craps, where the player bets on a terminal at the table but the game is managed by a dealer, although with fewer dealers than the non-hybrid version, this saves costs. Heads-up gaming involves players making decisions on their own machine with no interaction from other players.

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