Casino – as soon as we see the word, we get chills. It’s no doubt that most of us know Casino as a ” bad entity ” for many reasons. It causes addiction and ruins the life. But ask those who are not addicted to casino and are living their normal lives, Casino is way a lot of fun/ gaming for them. In the spot light are those who spent time in the casino but we never think of those who are the owners of the casino : in simple word those who operate the casino. Is owing a casino profitable?, well that’s the topic of today’s article.
With most of the focus on the potential customers of casino, we never question for the fact whether owning a casino is profitable or not. The society has shaped us in such a way that most of us think of casino owners as multi billionaires who are making billions day and night.
That is not the truth. Just like every business the casino business faces some ups and downs. To support my words, we can see the Ocean resort casino got itself sold again and again. It shows that casino business just like every other business out there is subjected to ups and downs.
Let’s have our outdated concepts regarding the casino ownership vanished and look at the casino business in the most practical ways.
Note – we are considering the offline modal of casino here ( The brick and mortar Casino ) not the online casino. So that should be kept in mind as both of these casino modal differ with each other in almost every aspect out there from the starting capital to the team management, it’s all different.
In 2016, the revenue from US casinos was around $73 billion. That just goes to show you how much love there is regarding casino gambling
Let’s figure out how exactly can owning a casino be profitable or not profitable.
If you are expecting to make money through the gambling only, you are wrong at this point. The house edge ( The share they take away in casino games ) alone is not enough to keep the casino breathing. It just needs more profit to sustain itself.
The gambling activities are what casino stand for but the black and white gambling solution may not even help you at all, you need strategies to make your casino stand out.
For example many casinos offer free drinks ( They do it to give their customers a dopamine rush so that those who were not ready to gamble , start gambling ). What about a person just hops in for the free drink, and just gamble with $5 and comes out?, you loose. He wins.
The point is to exploit the human nature
To put it in a nutshell, I would say
For a casino to be profitable, it has to exploit more of the negatives in the human nature.
That is, if you successfully plan your casino to exploit the negative part of the human nature; you win.
Anyways let’s figure out how exactly your Casino is going to make money. Which sources are going to help it the most.
Your casino is supposed to make money through –
- Gambling Activities
- Recreational Clubs
- Shopping Malls
- Guest Rooms
- Cool Strategies – Secrets!
This might sounds contrary to popular believes but the casino makes money by properly incorporating the above mentioned ways. Just gambling activities wont cut it.
let’s break down all of the sources so that we can figure out whether the casino can be profitable or not.
This is one of the most revenue generating areas among t he casino of all kinds. The ability of the casino to drain the gambler’s pocket determines it’s success and we all know about it.
Among the high revenue generating games are the slot machines, roulette and poker. Some other games such as the bingo also generate revenue but we are considering those who provide the major influence.
To make the most out of your casino you need to understand the concept of ” House Edge “.
House edge is the casino’s share in the games. For example if casino has a 5% share on roulette then from every bet, the casino would cut of 5% amount for themselves. The remaining amount is involved in the game. For example if $100 bets are made at a game, then casino takes $5 for itself and returns the $95 as the winnings. So Casino itself is always making profit whether you are winning or loosing. Don’t ever think you made the casino loose money, it’s their world and they have designed it perfectly.
So for your casino to make money you have to keep a different house edge on different games. You can’t just bring a 50% house edge because everyone would leave the casino, the point is to keep it at max without people knowing it.
A few tips to have an increased house edge is
- Keep the house edge high on the games which involve large amount of bets
- Keep the house edge high on the games which return big winnings
Explaining the first one – A house edge on a game with high bet would simply help you generate more of profit. If a game makes everyone to bet $100 and you have a 15% house edge then you simply take away $15. But these high bets involving games are not so common and you can’t expect much of money or pofit from them but they do divide the load.
Secondly, if the winning is too damn high then everyone is expected to play even at once. So they are just gonna try. If everyone tries with $10 and you have 20% house edge then you simply make $2 from each and every person. They won’t be loosing much but you are gaining a lot.
The more games you offer the better is the environment and the more house edge you keep. But it’s not that simple, the casino we see have many strategies to maximize the house edge. I will share it at the end of this article so stay to learn some cool strategy to maximize the house edge.
Foods / Restaurants
A casino is not all about gambling as I said earlier. You need to derive money from different sectors. You can either rent a part of the casino to a restaurant or you can open up your own. Have a decent menu that would compel people to just spend some money on food. Keep the food rates moderately high or hire a person with the restaurant management background.
So have a decent restaurant management set up for generating some profit from this section of the casino.
Recreational clubs are one of the revenue generating sources from the casino. Don’t ever think of casino as a gambling only provider, it is a big building with a lot of stuff. People are not just rushing to gamble they also want some fun outside of that realm. So have some leisure clubs at your casino to drive the money from the people even when they are not gambling. For example let’s consider a person who enter your casino, gambles and then just want to leave for home because he wanna relax. What if there is a cinema in your casino or a winning pool that would attract his attention and he thinks to consider immediate relaxation rather than going back home. So he ends up spending more money at your casino rather than just gambling and leaving. So these should be a part of your recreational club.
Have some shopping malls at the casino so that people who enter are spending money through one way or the other. They never get enough of it. They gamble, they relax they shop, every single time they are spending. Have some flashy advertisements so that people spend. In the casino people are more open up than anywhere else so they are most likely to participate.
Your casino should be like a hotel it should have rooms which people can rent for days or even months. For those who come for a vacation they probably wanna stay somewhere in that particular area. So a casino can be an ideal spot since they gamble downstairs, shop upstairs and then relax at their room at the top apartment. what else can they wish for?
Bars, drinks and all the cool stuff can be seen as the flag for casino. It should be the second most revenue generating area for your casino after the the gambling activities. So yeah have some cool offers such as free first drink or something like that and your bar would be on fire.
Cool Strategies / Secret
This is the dark side and you have to incorporate it. As I said if you are willing to exploit the human psychology to the max then you should enter in the casino business.
With that being said here are some dark secret to get your casino some more cash flow.
- The exit door of your casino should be arranged in such a way that the person who decides to leave the casino has to go through a long way. This would make him glance through many different games and tables and people making him stop to gamble again. The more a person stays in your casino the more you can make out of him.
- Design your slot machines in such a way that hey intelligently handle the gambler. They should give him a very ” close win miss” so that he thinks to gamble again. The next time it’s closer until he has no more to bet. The slot machines should designed to make a payout whenever a fixed profit is received. Let’s say your slot machine should only announce a jackpot of $100 when it has made $50 from the $150 worth of spins.
- Offer free drinks to get people high enough so that the no longer have a lot of consciousness going around for clever play. Have some attractions near by ( Yeah the hot girls and the handsome guys ) for continuous distractions which can even result in the booking of your guest rooms and shopping malls.
I guess I have explained it pretty good for how the casino profit is supposed to go. If you are willing to exploit the human nature to the max and draw money from each and every source you can possible think of then casino is going to be profitable for you. If you just wanna make money through gambling or limited resources then I am sorry casino won’t make profit for you. It all depends upon the strategies and I have explained the basics for designing those above.
Feel free to comment down below, I would love to hear.