Blog Posted on 05/08/2020 | Author: Karen Macarthur
Everything You Should Know About Casino Earning
When taking an observation of the casino earnings that gaming companies make and trying to understand what all of the numbers and saying means, it can be hard to understand for a person. Revenue and net income are some easy terms to get used to and know what they mean, but luck plays a big role in the casino game and companies constantly introduce new terms like “rolling chips” and “drop” like they are terms which laymen use in their everyday conversation. But, we are here to let you know about it all, let’s understand what these numbers really mean and how they affect the earnings reports of the casinos.
How the house works
There are basically three original categories in any type of casino earnings reports: the first being mass-market play, the second category is VIP play and the third category is slots.
The mass-market is extremely easy to understand. It is the normal person who enters into a casino and puts money on a game table or into a video casino slot game machine. VIP players get to play on credit and use a thing which is called the rolling chips. Slots are just the basic video machines on which the gamers play. Here is a detailed explanation of the numbers and the terms so that you will not forget about them in the future.
Before we start talking about the complex and critical terms like VIPs and mass-market play, let us talk about slots first. Not every single casino company will give out the same amounts of data, but if they choose to disclose their data fully, it will include the following.
- Slot handle: This is the amount which is placed at a casino slot game machine.
- Slot hold %: This is the percentage of the slot handle that is won by the casino.
- Slot win: The casino’s win, which goes to the revenue line of the income statement of the casino.
Mass-market table games
When you enter a casino and stroll up to a Blackjack online casino game table in any of the top casinos in Las Vegas and you give the dealer who is in charge of the game, a $100 bill for chips so you could play, the dealer puts the cash into a dropbox. This is what is called as “drop,” as well as the “table game drop,” or sometimes is even referred to as “non-rolling chip drop.” The casino win which follows later is the amount which is left when you withdraw money for your chips at the cashier of the casino. Win in the table games is generally displayed as a percent of the drop, which also is related to the revenue.
Where the big bucks are made
In the last few years, investors have become really interested to focus on the rolling chip drop or VIP play in a lot of big casinos.
When VIP players enter into a casino, they do not directly place $1 million on the table and demand for chips; they play on their credit. Generally, this is performed through a junket, a company will, in turn, ask the players to lend them money and collect a cut of their losses from the live casino game. In the casinos of Macau, junkets often control and run their own casino rooms, but no matter how the arrangement of rooms work, VIP players will make use of rolling chips, which cannot be withdrawn directly for cash — they have to wager and gamble them.
Rolling chip drop or volume is the exact number of rolling chips wagered and dropped at the table just like how cash is dropped on the casino tables. Rewards are given out in chips that are equivalent to cash. A casino keeps note of the revenue on the categories of how much of the rolling chip plays is lost during the game.
When you are reading the gaming earnings, keep in mind that rolling chip drop is equal to the volume or turnover. Different companies will have different terms for the issue, but they have the exact same meaning behind it.
With the start of VIP play responsible for a number of majorities of casino revenue in Macau, you will notice why this win percentage can turn very volatile earnings from types of the quarter to the other quarters.
These few pointers allow you to understand the game better and enable you to guarantee at least one win. The more you play, the more polished you become at handling your casino game, but these above-mentioned facts will let you understand the game on a wider perspective.