Moving Forward!

[Flying Dutchman]

Did I miss something.......where did it say that the casino pays out 80%? There is no way a casino, no way in hell, it pays out 80%.

[Clueless]

[quote=lurker;44867]I don't buy into their numbers.

It's my understanding that the casino's take is somewhere near 20% and the payout is ~80%. Their 20% is very elastic... or a tremendous amount of money's going to be bet.

For every $100 placed into gaming, the 'take' is $20 and that twenty is further divided with the State getting ~20% and Dodge City gets 1.5% (30 cents). Our 30 cents per Hundred gambled Dollars is projected to equal One and a Half Million Dollars at the end of a year... about 5% of Dodge City's annual budget.

Every time we get 30 cents, somebody bet One Hundred Dollars. Five Million $100 bets must be placed in order for Dodge City to get a meager One and a Half Million. In other words, $500,000,000.00 must be gambled annually (or ~$10,000,000.00 per week).


Here's where the numbers are elastic.

With an 80% payout, every Hundred Dollar bill that enters the casino has a life span of 20 games (where we get our cut of the take) before its value to its (new) owner falls under one dollar (92 cents).... and the gamer feels 'entertained' enough to gather their losses and leave.... and (hopefully) spends what's left in the local economy.QUOTE]

Lurker - I think this is a good explanation of the amount gambled, v/s the amount paid out and the amount retained by the casino.

How Much is Gambled ?

While there are many ways to gauge the size of any industry—by the number of employees, the output of products, tax receipts or customer count—the most common comparison is by gross revenues, or sales. When gross revenue is used to gauge the size of the gaming industry, it is a measure of how much consumers spend—or the operator wins—on legal gambling games. This appears to be an easy question. But the answers vary widely. For example, a Washington Post columnist claimed that "Legal gambling takes in" about $637 billion yearly. Within a week, however, U.S. News and World Report stated that "The gambling industry's revenues" were "$50.9 billion at the most recent count." Who's right?

To understand why people arrive at different estimates of the gaming industry's size, consider a hypothetical casino customer's experience. Sue and Bill visit Casino Royale one Saturday evening to gamble a bit and see a show. Bill exchanges $100 in cash for 100 $1 tokens to use in Casino Royale' s slot machines. Bill bets one token at a time and bets each of his original 100 tokens. He'll win some of these bets, and he'll lose some of these bets. Because the typical slot machine pays out 90 cents for every dollar put in the slot machine, Bill ends up with about 90 tokens. Bill continues to bet one token at a time, and bets each of his 90 remaining tokens. The most likely outcome is that Bill will have about 81 tokens in the slot machine's pay-out tray (90 bets with an "expected value" of 90 cents, or 90 X 0.90 = 81). By this time, 8 o'clock is fast approaching, and Sue and Bill head off to the show.

Of his original $100, Bill has $81 left. He has, for all practical purposes, "spent" $19 on the slot machines. He's wagered both his original $100, plus the $90 he had in his tray after his first round on the machine—or a total of $190. But Casino Royale only has $19 from Bill.

Confusion between the amount wagered, sometimes called "handle," and the amount actually spent accounts for the widely varying estimates of the size of the legalized gaming industry. The only relevant figure - for Bill's personal accounting, for the casino's accounting and to gauge the size of the gaming industry in relation to other industries—is the amount actually spent by customers, not the total amount they may have wagered repeatedly over the course of the evening. Legalized gambling is accurately depicted as a $54 billion industry, the gross revenue reported by operators before salaries, taxes and expenses are paid.

[Mike B.]

I can tell you this with certainty, that gamblers will have to lose over $900,000,000.00 ( nine hundred million) every year for the State to get their share of $200,000,000.00 ( two hundred million) from these casinos.

[Clueless]

Originally Posted by Mike B.

I can tell you this with certainty, that gamblers will have to lose over $900,000,000.00 ( nine hundred million) every year for the State to get their share of $200,000,000.00 ( two hundred million) from these casinos.

Where does the other $700 M go?

What percentage do the "gaming promoters (your words)" earn as a return on their investment? How does that compare with other types of business?

How many dollars are currently lost by Kansas residents in out-of-state facilities (for which there is zero return to Kansas or it's business community)?

Not 'fun-facts', but a more serious review of business

[Mike B.]

Clueless,

I believe, I may be wrong, 3% of that 7 hundred million will go to local and county gov'ts. Then the casinos have expenses, whatever they are. The remainder, whatever that is, goes to the operator of the casino, to do with as they see fit. LOL...whatever that is. LOL...

Maybe Jeff Thorp could answer all these questions!

[lurker]

Originally Posted by Flying Dutchman

Did I miss something.......where did it say that the casino pays out 80%? There is no way a casino, no way in hell, it pays out 80%.

Ohhh K. Maybe 90% is more accurate.