Posted on 26th Nov, 2009
How often in the last few years have we heard of a gaming company blaming lower than expected table game hold for its poor quarter or half year result?
The MGM, Mirage, Hilton and most recently Harrah’s (or The Rio more particularly) have all fallen foul of low hold percentages. Poor win rates brought about by dealing high limit Baccarat to a select few (predominantly Asian) customers.
Win rate volatility is however only one aspect of volatility that operates in this area to make the business of dealing with high rollers an even riskier proposition.
Volume: Not just of customers but also of total amount wagered. One player I know of turned over $850 million in wagers in one visit to a particular casino. Another turned over in excess of $1.25 billion in the course of a year. Add these players in or out of the equation and volumes can vary dramatically from year to year even though total player visits might remain relatively constant. Analysts and many casino executives often neglect this factor when reviewing results or drawing up next year’s budget.
Win Rate: Baccarat is a game of chance and so fortunes can, and do, pass both ways across the gaming tables. The house advantage on Baccarat averages a very low 1.3% to make this close to a true even money bet every time the cards are drawn for a new hand. (or coup as it is known) An interesting statistic is that 14,981,640 hands need to be played for there to be a 95% confidence interval of results falling between a win rate of 1.25% and 1.35%. If you multiply this number by a bet of $100,000 you require $1,498,164,503,243 in turnover for win rate “certainty”. An astounding number in any ones view!
Read more | Posted by admin | Comments Off
Posted on 20th Nov, 2009
Many Slot Clubs today offer money back their players are based either on a percentage of turnover or scholarly work. This in many cases has replaced redemption program in which gifts are exchanged for points accumulated by playing on gaming machines.
Slot Clubs themselves have become dominant in a variety of reasons which make players with guaranteed prizes, and provide a very important direct marketing tool.
Because of the importance of play in Slot Casino companies have these companies become increasingly sophisticated over time and Slot managers have realized that the”cash is king”in the field of business also.
So”Cash Back”has become the cry from many Casino Slot Club.
The question is however what is cash back actually cost function, and immediate interest in the results may occur as a direct result of giving people refunds to play that can either be put back through the gaming machine or take home as bonus.
It is possible to calculate both the cost and income range affect the grant money back to players. Without going into the recipe, costs vary between
* The face value of amounts paid to players assuming again? Investment (take the money and run), and
* At the point where all the money back the amounts received are investments and costs are essentially the more tax paid on the”free”income
Similarly, the turnover effect between different
* Oh give no Reinvested cash back (player either reduce their share of first or not does not count the money again and pay gaming) and
* Money back divided by the edge of game compared to all the cash back is played to exhaustion (player Wager initially share with their money back, which is believed to be a bonus or a series of”free game’)
Fear that the cost of cash given back to”take the money and run”scenario should be balanced against the potential positive in incremental sales growth. Cash back creates the possibility of again? Investment in funds, especially when small amounts can be exchanged frequently. This is in contrast to the prize redemption list where it is difficult to argue that direct incremental results of playing with someone solve such toaster on \ their “Slot Club”levels.
Read more | Posted by admin | Comments Off
Posted on 14th Nov, 2009
When considering a new game development in a jurisdiction which are important to the government and senior officials may be looking for? If there is strong latent demand for gambling in the region, it is unlikely that the government project, which are only offered casino gambling. Rather, it is the attractiveness of everything else, it is proposed to commit to a casino, that could eventually win the day.
This leads to greater discussion on the desirability of Integrated Resorts. If the government will allocate only one gaming license, or just a handful of franchises, how companies should position with their own proposed Integrated Resorts to maximize the chances of winning the license, which is economically viable and attractive to its shareholders?
PAINT is an acronym that is useful in assessing the properties that must be supported and addressed gaming companies in developing and assessing new approaches to integrated Resort Casino in the country, which is consideringor recently authorizedcasino play. Easel for partners, architecture, investment, Novelty and tourism.
For many jurisdictions considering the legal game for the first time, it is an element, tourism, that is actually useful. If casinos can generate a significant impact on their regional or national tourism, the resulting economic benefits will be direct (the new capital investment, job creation, tax revenue generation, spill-over benefits of tourism for the rest of the region) and indirect (multiplier effect as higher income generated in casinos and resorts are spent jurisdictions increase local wealth.) It is easy to point to the experience of Las Vegas, Atlantic City, Biloxi, Connecticut, Macao and illustrate strength of these forces.
Read more | Posted by admin | Comments Off