The casino industry is one of the most profitable in the world, with the casino global market value projected to reach $233.7 billion dollars by 2027. It’s also very satisfying to entertain patrons with world-class slot machines and casino table games. With so much money to be made and fun to be had, many people wonder how much it would cost to start a casino of their own.
The truth is that it takes money to make money — especially in the casino industry — and there are several factors that could influence how much opening a casino costs. From the licensing and location to the purse you need waiting and the cost of the games themselves, starting a casino is no small task (and it won’t be a small expense either).
Take a look at how much you can expect to spend on starting your own casino.
Land-Based Casino Start-Up Costs
So, how much money does it take to start up a land-based casino? The answer is: a lot. If you want to know how to start a casino, the first thing you’re going to need to do is purchase a property in a state where casino gambling is legal. Property prices vary depending on location (expect to pay more in a city like Las Vegas), while the scale of your ambition determines construction prices. The best gambling venues are, however, renowned for their stunning casino architecture, so if you want to be among the best, it’s safe to say you can expect a relatively high price tag where construction is concerned.
Brick-and-mortar casinos usually come with hotels, restaurants, stores, convention centers, and entertainment venues, which all cost money to build. By way of example, the sprawling Wynn Las Vegas casino hotel cost approximately $2.975 billion: $275 million for the property and an additional $2.7 billion for the construction. The Borgata Hotel Casino & Spa in Atlantic City cost over a billion, while the more modest Luxor and Excalibur hotels cost in the region of $450 million.
Casino Games and Supplies
Once your casino is built, it’s time to purchase slot machines and casino table games to keep your customers entertained. Slot machines earn the most money and typically cost between $15,000 and $25,000 a piece, so you’ll want to sink a significant chunk of your budget into them. Mandalay Bay, for instance, has over 1,200 slots and video poker games. You’ll want to update your slots offering from time to time so your customers can come back to new casino games.
When it comes to table games, tables for baccarat, blackjack, roulette, craps, and poker cost anywhere from $2,000–$7,000. Playing cards, automated shufflers, shoes, and dice all cost money too, so expect to spend at least $100 per table on these supplies. Chips are also essential. An adequate supply of chips in various denominations plus chip trays to keep them in will set you back $20,000 minimum. And don’t forget about the chairs. Quality chairs to keep your customers (and dealers) comfortable will cost $150 and upwards a piece.
Licenses and Taxes
Licensing fees are a reality that no land-based casino can afford to ignore. Each state has a different casino licensing fee. Nevada, for instance, will charge you $250 per slot machine, with a sliding rate for casino table games. If you have 15 games or less, you’ll only pay $125 per game, while the top rate is $20,300.00 per year plus $25.00 for each game over 35.
Of course, if your satisfied customers bring in a profit, you’ll pay tax based on your gross gaming revenue. Nevada casinos pay 3.5% of their first $50,000, 4.5% of the following $84,000, and 6.75% of all revenue beyond $134,000. Nevada has the lowest casino taxes of any state. Casinos in Michigan and New Jersey, for example, pay 8.4 and 8.5%, respectively.
Staffing Costs
Land-based casinos are bustling places, with a great deal of staff required to keep things running smoothly. On the gaming side, you’ll need to employ cashiers, dealers, pit managers, pit bosses, customer service agents, and security personnel. Support staff include cleaning crews, wait staff, cooks, hotel personnel, and human resources. You’ll have hourly employees earning $15 an hour (plus tips), and you’ll have salaried employees taking away $50,000 to $100,000 per year. When you consider that some casino hotels employ as many as 1,300 staff, that brings a wage bill that runs into the hundreds of millions.
Can Anyone Open A Casino?
Aside from asking yourself, “How much does it cost to own a casino,” you should be asking if you’re even allowed to open a casino. It might seem like a glamorous business endeavor, but the casino environment in the United States is extremely complex and heavily regulated.
So, who can own a casino? Well, historically, casinos were largely illegal until the mid-20th century, when they started to gain acceptance. Native American tribes played a pivotal role in casino ownership as they won the right to operate casinos on tribal lands through landmark lawsuits. However, these casinos were tribal enterprises, not individual ventures.
Today, the legal intricacies of owning a casino vary by state. Many states have had legal online sports betting for years now, but casino gambling has been a lot slower to spread through the U.S. Utah, for example, has a complete ban on all betting activities, Hawaii only allows social games like private home poker games, while Alabama, Alaska, and Nevada don’t have a state lottery. Other states still restrict commercial casinos and sports betting as well. Before you try to open a casino or even participate in online gambling, you need to make sure it is legal in your state.
How Much Does It Cost To Open an Online Casino?
A much more cost-effective alternative to opening a land-based casino would be to start an online casino. With no need to buy land or construct a casino hotel, your overheads are much lower, and your patrons can join you from the comfort of your home. Still, starting an online casino doesn’t exactly come cheap. If you’re starting from scratch, you’ll have to pay a casino software developer to power your online platform at a cost of anything from $100,000 to $300,000, plus royalties. You’ll also want to hire a good designer to create a website with the right look and feel.
Once you have a platform, you’ll need to populate it with gaming content. Online casino games range from $200 to $5,000 per game plus commission. As far as selection is concerned, you’ll want to provide a broad range. Online casino slots and single-player video table games are always popular, but there are always new casino games coming on the market. One of the most exciting trends in the last decade has been the arrival of live dealer casino games. Live dealer blackjack, roulette, and baccarat are mobile-friendly games that feel just like being in a brick-and-mortar casino.
Online Casino Expertise
Safety is an essential aspect of the online casino business. You’ll want to purchase an SSL digital encryption certificate to ensure your patrons’ information is safe at all times. Safe, trusted payment options such as credit cards, e-wallets, and prepaid cards are also a must. Payment portals cost around $20,000 a year.
Equally vital to the health of your business are sales and marketing. SEO (search engine optimization) is key to putting your brand at the top of the search engine rankings, so it’s worth hiring an SEO marketing specialist (average salary: $55,000 a year). Other key staff members will be a designer, web developer, project manager, customer service agents, sales managers, payment specialists, content manager, and an accountant. Taking all these factors into consideration, you can expect to incur start-up costs from $1.5 million to $2.1 million and up.
How To Play Casino Games at Their Best? Borgata Online
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