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Wei_Dai comments on Open Thread: January 2010 - Less Wrong
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I curious what made you think about this problem. I'm sure you're aware of the efficient market hypothesis... do you have some private information that suggests casino stocks are undervalued?
By coincidence I was in Las Vegas a couple of weeks ago and did some research before I left for the trip. It turns out that many casinos (both physical and online) offer gambles with positive expected value for the player, as a way to attract customers (most of whom are too irrational to take proper advantage of the offers, I suppose). There are entire books and websites devoted to this. See http://en.wikipedia.org/wiki/Comps_%28casino%29 and http://www.casinobonuswhores.com/
It was a random thought. I don't think casino stocks are particularly undervalued, but that doesn't affect the basic analysis: If you own such stocks, you're basically making money off slot machines, in the same way that owning stock in a widget factory means you're making money from the production of widgets.