Gambling is a massive business, with usually lots of funds changing hands every day. For this reason, owning a casino is often considered a very profitable business. However, the earnings can vary massively depending on the location, number of players, and several other factors. How much can casino owners make?
Ever since the first casinos popped up, gambling has been a rather large part of the economy. In just the United States alone, the gambling sector generates between 60 and 80 billion dollars in just the tax revenue per year. However, it’s just a small slice of the whole pie – the total economic impact is at least in the hundreds of billions. As for specific establishments, the daily revenue is heavily dependent on factors such as location, size, the offering of games, as well as the general reputation of the casino. Let’s take Las Vegas as an example: casinos located on the Strip make about $2 million daily on average.
The most profitable locations for a casino are places heavily frequented by tourists, along with classic gambling hotspots, such as Nevada, Atlantic City, or Macau. The record numbers belong to establishments based in Las Vegas – the average yearly profit on the Strip is around 700 million USD. Some of the casinos report numbers up to several billion, such as Wynn with $1.7 billion in annual revenue.
The size also plays a huge part, however it’s a bit of a double-edged sword for casinos. More space means being able to serve more players – but, at the same time, you have to take into account additional overhead, including more workers, electricity costs, and the cost of the building itself. However, given that the most profitable casinos tend to be the largest ones, it’s safe to assume that size generally correlates pretty well with earning potential.
Another aspect of a casino’s revenue is its reputation, which directly affects how many players will be interested in visiting the establishment. The most famous spots can also get away with requiring entry fees or higher bets, which can bring in much more money overall.
In general, the best bet for casinos is offering table games – especially the classics, such as roulette or poker. Despite the fact that they usually require hiring dealers to handle the games, the return for the casino makes it definitely worth it. On the other hand, slots usually provide the smallest profit margins.
It’s worth noting that the games themselves are just one part of the whole casino’s income. Almost all establishments also serve drinks and food, and many of them provide hotel rooms as well. In general, gambling revenue makes up between half and a third of the whole pie. The biggest income stream other than games is usually hotel earnings, while food and beverages make up the rest. Some casinos might also include additional entertainment options, which might boost the numbers a little, however, they usually remain the smallest portion of total income.
As with many other businesses, casino owners tend to make the most out of all the employees and executives. How much is the typical salary? It depends mainly on the same factors as described above – naturally, bigger casinos in more prominent locations will provide more money for their owners. However, it’s possible to earn a nice sum even on the lower end of the scale. When looking at the numbers from the United States, we can learn that the top 10 percent of casino owners tend to make over $180,000 per year, while the average yearly salary for the bottom 10 percent is just over $50,000.
For the most part, a casino owner’s salary will fall somewhere between these two values. As such, owners typically earn somewhat over six figures a year. Many establishments also operate using commissions – for example, 1% of all the earnings might go to the owner in addition to the base salary. This can boost the numbers heavily, but it also makes it hard to provide a certain answer to the question above. Some other factors to take into account include the education level and experience, which also affect the yearly salary numbers.
The answer to this question is definitely not surprising: it’s, of course, Las Vegas. After all, it’s the capital of gambling, as well as the location of the most profitable casinos not only in the U.S., but the whole world. Owners of Las Vegas casinos might make several times more than people in similar roles from other states or countries. A typical salary on the Strip might fall anywhere between $500,000 and several million a year. According to numbers found online, the typical profit margin for a casino is a respectable 2–5%. However, before deciding to pick up a new career as a casino owner, it’s important to note that it requires massive amounts of up-front investment, especially if you want to compete with the biggest players on the market.