Are the casino only earn by HOuse edge ??
  • is that supposed the casino can only earn the house edge

    for example , if the average house edge of all game is 2%


    and there are one million dollars bet on each day

    is it mean they can only earn 20000 dollars per day on average


    since I think most people will lost all the money in their pocket then leave

    will it make the casino income is much higher than the house edge rate ???
  • beyond14 said:
    is that supposed the casino can only earn the house edge

    for example , if the average house edge of all game is 2%


    and there are one million dollars bet on each day

    is it mean they can only earn 20000 dollars per day on average


    since I think most people will lost all the money in their pocket then leave

    will it make the casino income is much higher than the house edge rate ???



    You are not understanding "house edge". It is multiplied by the sum total of all bets for a given period of time. For example, suppose you sit down at a $10 table and play 100 hands at $10 per bet. You produced $1000 of action even though you only bought in with $100 total. And if the house has the usual 3-4% edge against the ploppy, they are going to rake in 30-40 bucks from that single player.

    If you take a mythical casino that has 30 bj tables, with each table having 6 playing positions, that is 1800 BJ players. Assume that the average bet for those tables is $200 (some at $10 tables, some at $25, some at $100 tables, etc) which is probably low. So now the total "action" becomes

    1800 * 200 * 60 (assuming 60 rounds per hour) * 24 (24 hours in a day) and their daily take becomes

    $518,400,000.00 of "action". They get say 3% of that. $15,000,000 _per day_.

    Not quite "chump change"..

    If you halve the average bet, that is still $7.5M per day. If you assume the tables are 1/2 full, that is still $3.75M per day. It _really_ adds up in a hurry...

    Of course some also have more than 30 BJ tables...
  • Besides what Stainless Steel Rat said, you also have to strongly look at the games where personal decision effects that house edge.
    In slots, they probably make the house edge or more because some people do not play full coins.
    In VP, they make over the house edge because most people make tons of errors in their decisions and again some do not play full cons.
    In blackjack, they make way way over the house edge again because most people do not know how to play.

    House edge is based upon people playing the proper basic strategy for the game, the worse they play the more the casino makes. Let's face it, if everyone played perfect basic strategy against a typical blackjack game, the game would no longer exist.

    ihate17
  • While casinos pull in tons of money,the majority of it goes right back out.A large casino has a small army of employees-valet,bellhops,frontdesk,security,maintence,wait staff,barkeeps,cashiers,countroom staff,ect,ect,ad nauseum.I own stock in several casinos and not all of them are great profit-makers.Last year,for example,Mountaineer Racing made a nice profit from its various racinos but was in the red for the year at both Binions and The Speedway,its two Vegas holdings.
    Many casino companies took huge hits as a result of Katrina last year.Harrahs kept thousands of workers on its payroll even though the casinos were closed.
  • I don't think stock values are the best way to measure a casino's take from the public. Execs are paid big salaries. The facilities are lavish. Just because they choose to spend a ton of money on upper mgt and facilities, rather than banking the money to drive up stock prices really doesn't mean they are not raking it in... It is the most lucrative business one can find from the perspective that there is no manufacturing costs, no transportation costs, no warranty issues or recall problems, no product liability issues. People just walk in off the street, make cash deposits into the casino coffers, and leave... most people that is...
  • stainless steel rat said:
    I don't think stock values are the best way to measure a casino's take from the public. Execs are paid big salaries. The facilities are lavish. Just because they choose to spend a ton of money on upper mgt and facilities, rather than banking the money to drive up stock prices really doesn't mean they are not raking it in... It is the most lucrative business one can find from the perspective that there is no manufacturing costs, no transportation costs, no warranty issues or recall problems, no product liability issues. People just walk in off the street, make cash deposits into the casino coffers, and leave... most people that is...



    I agree that a companies stock is not the best way to measure a casinos take,but their SEC filings certainly should be.As a public entity,every nickel they bring in or put out is scrutinized and when MNTG reports that Binions lost several hundred thousand dollars last year,it's hard to dispute.
  • i heard the Sands in macau report they can earn 17.5% profit from players

    so i think the house edge isnt reflect the profit of the casino , its much higher
  • NYB said:
    I agree that a companies stock is not the best way to measure a casinos take,but their SEC filings certainly should be.As a public entity,every nickel they bring in or put out is scrutinized and when MNTG reports that Binions lost several hundred thousand dollars last year,it's hard to dispute.



    Not quite. There are lots of ways to "lose money" without really losing money. Quarterly write-offs of old debt come to mind. Money that was lost years ago but carried on the books until it is convenient to dump it to offset current profits...
  • beyond14 said:
    i heard the Sands in macau report they can earn 17.5% profit from players

    so i think the house edge isnt reflect the profit of the casino , its much higher



    Correct, profit is what is left after the income comes in, and money is spent on everything that it is spent on, including big salaries, expenses, depreciation, writeoffs, equipment purchases, etc...

    There are plenty of non-profit corps that pay huge salaries to top mgt, and which do not make a single dollar of profit as a result.
  • stainless steel rat said:
    Not quite. There are lots of ways to "lose money" without really losing money. Quarterly write-offs of old debt come to mind. Money that was lost years ago but carried on the books until it is convenient to dump it to offset current profits...


    But MNTG has only owned it for less than a year,so there is no old debt to write off.

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