In the old “money” game, the casinos are always the winners.
They are the ones who can find a way to win the money. In the new game, the casino is the loser.
Because of this, they need to increase their spending, but they also have to decrease their costs. They need to increase their cash reserves; they need to decrease their expenses for the money that they lose (or that they spend in order to keep the casinos from losing). Their “winning” behavior is to invest the money that they lose in new casinos, which will increase their income even more and make the casino more attractive to their customers.
If the money goes to casinos, then they need to spend to the maximum to keep their casinos from losing so badly that they become insolvent and close down.
This leads casino to become their biggest “risk”, which makes them very “competitive”…
When casinos stop offering casino “cheapness” and offer “cheapness in quality”, they will get out-competed by the other casinos. In this situation, no one will be satisfied if their favorite casino stops offering casino “cheapness” and continues to offer “cheapness in quality”.
Here a picture may make the whole point clearer. Here we see a picture to represent the way a “competitive economy” works: in the middle, a monopoly is a winner. There is no way that the casino will lose to the “best” competing casino. All other players will also make money by gambling on the “best” casino.
This means that the most profitable casino will be the one that offers the most “price” (“quality”). If they do not have a monopoly, their competitors will. Since they do have “price”, their competitors’ prices are also “price”.
In this example, the casino that is offering the most “quality” will also have the most competitors, since they are offering the best quality.
As a result of this competition, the casino that is offering the “cheapest” value will lose more and more money in order to keep its monopoly.
Here the casino will increase the price of its games so that its competitor will lose more and more money. And this is where the “competition” has a side effect.
In a free market, there will be atleast two ways to compete:
As a monopoly. As free market competition which offers the most