What is calculated by subtracting payouts from total bets placed in a casino?

The correct answer is that the calculation obtained by subtracting payouts from total bets placed in a casino reflects the casino's win. This is because the total bets represent the amount of money wagered by players, and the payouts are the amount of money returned to players in winnings. When you subtract the payouts from the total bets, what remains is the amount the casino retains, which directly corresponds to their revenue from gaming operations, often referred to as the 'win' or 'gross gaming revenue.' This figure plays a critical role in understanding the profitability of the casino and is essential for financial reporting and operational analysis within the gaming industry.

The house edge represents the statistical advantage that the casino has over the players, but it is inherently linked to the total bets and payouts. The handle refers to the total amount of bets placed but does not take into account the financial outcome for the casino. The profit margin typically considers broader financial metrics, including operational costs, rather than just the gaming revenue. Therefore, the distinction lies in recognizing that the casino's win is specifically the net amount retained after accounting for what is paid back to players.