How Much Money Does A Casino Make In A Day?
Wynn Las Vegas makes the most money out of all the casinos in Las Vegas. However, it doesn't include just the casino. You have to consider the following: non-gaming activities that account for 67% of the $1.66 billion. This includes food and beverage, amounting to $400 million; day and nightclub operations account for $150 million; and accommodations amounting to $403.3 million. Also include entertainment revenue generating $211.5 million. As you can see, when you ask how much money a casino makes in a day, you have to take into account the entire casino's revenue, not just the gaming. But according to the University of Las Vegas, 23 Las Vegas casinos make over $72 million each (this is as of fiscal year 2013) and this averages out to $630,000 a day, per casino. This figure is ambiguous because we know that as of today, Las Vegas Casinos are not doing as well as expected due to the presence of online casinos. Moreover, with the recent Supreme Court decision to legalize sports betting, you may see even lower stats for Las Vegas Casinos known for their sports betting as well.
How Much Money Does Online Casinos Make a Month?
If we're going to ask the question about land-based casinos, I think it is also important to ask: How much money does an online casino make per month? Frankly, I have done a bit of research into this area and found some interesting information. In 2016, Paul Wilson from Gambling Sites attempted to ascertain how much money an online casino would make in a month. His results were quite informative. Here is what he said.
"These are the big 3 casino software providers: Playtech , Microgaming , and NetEnt . I've seen estimates that claim these 3 companies power 60% of all online casinos. All of them have one thing in common: They're expensive. All of these providers charge $11,000 or $12,000 a month to lease their software. They also get a 15% cut of the casinos' winnings….But that's not the only expense. Almost all online casinos run an affiliate program in order to drive business to their site. Here's how that works:
A webmaster runs a gambling information portal or site. He signs up for a casino affiliate program. He advertises the casino in exchange for a commission on each player. This commission usually takes 1 of 2 forms: A CPA (cost per acquisition) and Revshare (revenue sharing). A CPA is a flat amount that the casino pays the affiliate for each player who signs up and makes a deposit at the casino. This amount can range from $25 to $500, depending on how much volume a site is able to send a casino. With a CPA arrangement, the casino risks paying more for the player than the player loses to the casino……A casino has an idea of what the average player is going to lose. That amount is always more than the CPA. The other arrangement is called Revshare, or revenue sharing. In this arrangement, the casino pays the affiliate a percentage of the players' losses for the lifetime of the player. This amount varies, but it hovers around 25%. Big affiliates can demand higher Revshare percentages. So if an affiliate refers a player who deposits and loses $10,000 a month, he gets $2500 in commission each month. …..So far we have a flat fee of $12,000 a month going out the door. We're also seeing 25% of the casino's wins being paid out in commissions, and we have 15% royalties going to the software provider. Casinos also have to pay for customer service and hosting. Let's assume you can operate a world class customer service department using offshore labor and spending only $5000 a month. Let's also assume that a casino is using its own secure server. …..I'm going to call it $2500 a month. So now we have almost $20,000 a month in fixed expenses, and we have 40% of player revenue accounted for on top of that. So just to break even, an online casino needs to earn enough money so that 60% of its earnings equate to $20,000 a month. So we're looking at a minimum casino win of at least $33,000 a month just to break even.
The Online Casino Market
The size of the online casino market is roughly $40 billion or $50 billion a year. That's about $4 billion a month. If we take the number of online casinos in operation, and divide that $4 billion by the number of online casinos in operation, we'll have an estimate of how much an average online casino makes. The best known source of information for online casinos is Casino City, especially when it comes to managing a database of properties. ….. Let's assume that Casino City isn't perfect and has left 400 casinos off their list. That means we have 4000 online casinos generating $4 billion in revenue per month. $4 billion divided by 4000 is $1 million. Does that mean every online casino makes $1 million per month gross? No. I'm sure the Pareto principle applies here as well as it does everywhere else. The top 20% of online casinos probably make 80% of the profits. So we probably have 800 online casinos generating the bulk of that money, while the other 3200 casinos make up a relatively small amount of that money. Still, let's assume that the $1 million a month is the number. You knock 40% of that off the top to cover affiliate commissions and software. That leaves you with $600,000 a month in profit. Subtract the other costs, and you still have well over half a million dollars in profit per month."