If you are a fan of casinos, whether online or land-based, you will notice that you can get a lot more value for money… including plentiful bonuses and promotions when playing at online casinos such as casinos.com. This isn’t because online casinos are simply more generous, but because it costs a lot more to run a land-based casino, and they need to be a lot more careful with how they spend their money.
So, that being said, let’s take a look at how much money it actually does take to run a successful casino…
No casino can run without a licence – and they don’t come cheap. Obtaining a casino licence is the very first step in establishing a legal and regulated operation. Although licensing fees vary depending on the jurisdiction, they are never cheap and can range from thousands to millions of dollars. And that’s just the start…
They are also faced with ongoing compliance costs such as background checks, audits, and regulatory fees – all of which are necessary to make sure that they adhere to legal requirements and can maintain a valid licence.
Building, buying or renting a suitable facility is a massive upfront cost for any casino. The amount it costs will depend on various factors such as location, size, amenities, and architectural design – a casino needs to pick one that satisfies their needs without bankrupting them.
The casino floor will need to accommodate plenty of gaming tables, slot machines, surveillance systems, cash handling equipment – and a secure vault for storing all the cash and chips. Moreover, its infrastructure should also support a reliable network, IT systems, and communication technologies. Installing and maintaining these will also come at a significant cost.
Then, they need to equip the building with games – and acquiring this gaming equipment and software can be hugely expensive. A good casino will need a wide range of gaming options to attract and entertain its players. This may include buying or renting slot machines, table games like blackjack and roulette, poker tables, and other electronic gaming devices.
They will also need to invest in software that ensures fairness, security, and regulatory compliance in order to maintain their licence.
Staffing is a significant ongoing expense for any casino. Hiring and training good staff across various departments – such as gaming operations, security, customer service, finance, marketing, and maintenance are essential to keeping the casino running smoothly and seamlessly. As well as the cost of salaries, there are other costs to factor in such as benefits, training programs, insurance, and other expenses.
Most casinos employ a large workforce so that they provide a high level of customer service.
A casino can’t make money without players, which is why promoting the casino and attracting customers is vital for success. This can mean huge marketing and advertising costs, such as traditional and digital marketing campaigns, advertising, public relations efforts, loyalty programs and player rewards and bonuses.
Any successful casino will need to invest in branding, online presence, social media marketing, direct mailers, and other advertising channels to be able to compete in a busy and crowded market.
Maintaining a secure environment is essential for a successful casino, which is why they need to invest in advanced security systems, surveillance cameras, access control and alarms, to make sure that they not only protect their assets but also prevent fraud – and keep their customers and employees safe.
Most casinos also invest in trained security personnel to guard the premises and to handle any possible situations that do arise.
In order to keep their licensors happy, they will need to comply with legal and regulatory requirements. As such, they will need to invest in robust anti-money laundering measures, conduct regular audits and adhere to the strictest reporting standards.
This means casinos are expected to spend money on Compliance Officers, software systems, and AML training programs to ensure regulatory compliance and make sure that there is limited risk of money laundering.
There are two certainties in this word – death and taxes. And taxes simply can’t be avoided, even by casinos. Casinos are subject to various taxes and fees imposed by the government or regulatory bodies which can include gaming taxes based on their revenue or turnover, licensing fees, regulatory fees and non-voluntary contributions to responsible gambling initiatives.
The tax rates and structures will vary depending on the location of the casino, but it can seriously impact the profitability of the casino’s operation.
Like any type of building or business, ongoing maintenance and regular upgrades are necessary to keep the casino facility and equipment in tip-top condition. This could include repairs, refurbishments, equipment replacements, and technology upgrades.
As such, a casino will need to allocate a budget for maintenance and upgrades to make sure it always remains competitive in the industry, especially when newer casinos come along.
That’s just the start. There are all sorts of miscellaneous expenses… including utility bills and more. It’s certainly not cheap… but the most successful casinos make enough to cover all these expenses and a lot more besides. Remember, the house always wins!