Whether you are in Sin City crashing the poker tables, trying out your luck at live casino Australia, or simply enjoying some casual online casino games from home, you can’t deny that playing is fun.
But there’s much more to the gambling industry – here are the top 5 insights into the world of chance.
1. Growth vs. Demand
For decades, the only two states that gave out licenses or provided individuals to establish land-based casinos were Nevada and New Jersey. However, fast forward to today, where almost every state in the US has at least one casino open.
If we dive into more detail, 17 of the 20 largest metropolitan areas have a casino within an hour’s drive. However, in recent years, some New Jersey casinos had to be closed because demand isn’t infinite, and it shows that if you give people the same thing over and over again, the interest will slowly go down.
2. Casinos Pay Higher Taxes
While Las Vegas is the capital of land-based casinos, the facilities that attract everyday players are the establishments in their surroundings. If we avoid Nevada for a moment, other state governments have tried to limit the number of open casinos.
With policies like this, owners are given a market with few competitors, allowing for better profit margins. Also, the state can impose a higher tax on gambling revenues of up to 30% without tearing down the owners’ investment returns.
If we take a look at tribal-owned casinos, they have a way lower taxes, none in some cases. These types of casinos are protected by federal law, and states like California cannot see as many tax benefits as other US states.
3. The Casino Industry Receives Big Financial Support
Over the last 35 years, the gambling industry in the US has been immensely subsidized. While they gave out licenses, states also prevented mass openings of casinos. This allowed owners to have less competition, reek more high margins, and states could impose higher tax rates.
At the beginning of the casino boom, many states took tax revenues from ones that didn’t have casinos. One interesting example is a casino in Charles Town, West Virginia, which was one of the highest-grossing casinos in the US for a brief time because residents from neighboring states like Baltimore and Washington D.C were flocking to the casino.
4. The Average Loss of a Casino Player
If we take a moderate casino goer, the average loss per visit will be somewhere in the ballpark of $80.
Another interesting thing that some of you may not know is that 75% of the casino’s profit, meaning player losses, comes from slot machines instead of table games.
The most common slots that bring in the big bucks for casinos are ones with 5 cents per spin, 10 cents per spin, and 25 cents per spin.
5. Problems with Gambling
The number of people or the percentage of people that have gambling problems isn’t known today. Some estimates have been done, and the speculation circulates around 2%
However, certain land-based casinos have safeguards that try to protect individuals with gambling problems.