Can You Afford to Skip the Casino Feasibility Study?

The idea of ​​developing a casino is often driven by circumstances such as unoptimized space in a hotel foyer, the need to fill a gap in hotel occupancy, or the availability of a permit as part of a tourism investment program. Too often the idea takes on a life of its own and the next steps are to create a casino design (which exactly matches the development team’s idea of ​​what players want) and start building, followed by finding the casino. Management. The problem is, there are common misconceptions about casinos and gamblers that keep developers trapped! More on that later, but let’s see what the most successful operators do … They start by understanding the market, its readiness, size, disposable income, access, competition (for all entertainment), market needs and compatibility of the Player profiles with other users of the hotel, resort or entertainment complex. This knowledge then forms the basis for the further feasibility study, in which the number of potential visitors and their frequency of visits, the duration of the average gaming session and the average stake are estimated. For further extrapolation, forecasts are made of the capacity requirements in terms of equipment, floor space and operating times. Finally, financial tables are created to provide an informed and informed judgment about income, investments and return on investment. But more than just the numbers, Feasibility is focused on thinking about how to optimize your chances of winning, eliminate potential fatal mistakes, and what it takes to compete effectively in the marketplace. Feasibility doesn’t have to be a lengthy and expensive exercise performed by a renowned academic. In the early stages it is enough to know whether you have a rough diamond or a worthless piece of glass. A professional คาสิโนออนไลน์ advisor can create an initial feasibility at a reasonable cost in just 10 working days and not only provides a decision point about the current idea or opportunity, but also provides a framework for screening future opportunities. Let’s look at some of the pitfalls …

The “license to print money” myth is a surprisingly popular assumption in relation to casinos and appears to prevent people from exercising all the usual care and diligence required in, for example, a survey of retail or restaurant opportunities. Examples that come to mind follow. A large casino is being developed in a jurisdiction where the maximum wagering of slot machines is restricted. Slot machine sales expectations were relied heavily on to make the casino viable. When an earnings model was carried out on the slots by an experienced manager a few days before the opening, it turned out that it was physically impossible to generate the required slots income with the number of machines installed … Obviously, the casino did not live up to that to the expectations. A large casino developed in the UK by an American operator failed miserably because it failed to understand the propensity for live gambling or the mobility of gamblers in the market, while a UK company in Las Vegas failed spectacularly because of its customers misunderstood and caused fatal design errors.

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