If you want to earn huge money within a very short period of time, then you can consider starting a casino business. Starting and running a casino are big jobs. The business not only demands considerable capital investment but also requires good planning. Here in this article, we have provided a comprehensive guide on how to start and run a casino business successfully.
Actually, the casino comes to the gaming and entertainment industry. Basically, casinos arrange certain types of gambling activities. In casinos, customers gamble by playing games of chance, in some cases with an element of skill, such as craps, roulette, baccarat, blackjack, and video poker. Most of the games come with mathematically determined odds that ensure the house has at all times an overall advantage over the players.
Currently, a modern casino is like an indoor amusement park for adults. The entire premise comes with musical shows, lighted fountains, shopping centers, lavish hotels, and elaborate themes that help draw in the guests.
Is Casino Business Profitable?
The casino market is very wide globally. Casinos are one of the major revenue-contributing segments in the global gambling market. The global casino market is highly diversified and competitive. It is because of the presence of a large number of regional and international vendors across the globe.
However, industry experts are expecting growth at a CAGR of 15.25%. Some of the major casino markets in the world are the USA, Asia Pacific, Europe, the Middle East, Africa, Canada, and Latin America. Basically, Macau, Las Vegas, Nevada, Singapore, France, Atlantic City, and New Jersey earn the highest revenue from the casino business.
Here are the 10 Steps to Start a Casino Business
1. Create a Business Plan
Starting a casino business requires huge startup capital investment. Therefore, you must craft a comprehensive business plan before getting into the business. Additionally, a professional-looking business plan document helps you in securing the start-up investment. Make sure to include a feasibility study that examines the demand for a casino and the justification of investment.
In the financial part of the plan, you must include the projected earnings, growth strategy, and marketing strategy. The below-mentioned points will definitely help you in creating a casino business plan of your own.
2. Licenses & Permissions for Casino Business
Licensing and permissions are crucial aspects of starting this business. First of all, you have to check the commercial gambling regulations. Check if commercial casinos are legal in your state by checking the American Gaming Association’s website. Also, check the local regulations or zoning requirements for operating a casino business in your location.
Additionally, check the alcohol regulations. It is mandatory if you want to serve hard drinks to your customers. Finally, check the age restrictions. Actually, the exact minimum age varies by state. Hence, check your state’s restrictions and institute a policy of checking IDs at the door so that you don’t run afoul of your state’s regulations.
3. How Much Money Do You Need to Start a Casino Business?
Starting a casino business demands capital investment in building the infrastructure, procuring equipment, arranging resources, and working capital investment. Therefore, it needs a large amount of money to start this business. Actually, a rightly documented business plan will help you in getting finance from potential investors and banks including other financial institutions.
4. Register Your Casino Business
After arranging the finance, you must register your casino business. You will need to apply for a business license and employer’s identification number (EIN). Additionally, you will need to register with the IRS and any other regulatory bodies that have power over casinos in your area. Also, you will need to obtain a gaming license. It is advisable to engage a lawyer for getting everything done in the right way.
5. Select a Business Name
It is essential to choose a catchy and relatable name for your casino company. A properly defined name not only enhances branding personality but also helps in attracting new customers. Check our detailed guide on how to name a business to learn more.
6. Decide on a Location
Choosing the right location for a casino is in fact a make-or-break decision for its success. The first thing to do is to check with local legal authorities whether running a casino is allowed or not. It is without saying, the location must be easily accessible and have enough parking spaces.
7. Build Casino Infrastructure
In building the casino infrastructure the primary requirement is the floor area. You will need to secure the required land area for building the casino. In this type of construction, you must engage an architect for creating the plan and execution. Before starting the construction, apply for a construction permit from the local Govt. authority.
After completion of the construction, you will need to prepare an interior floor plan. You must provide a comfortable gaming atmosphere for your patrons. Additionally, procure the gaming equipment from a reliable supplier.
Some of the most important instruments are slot machines, video poker machines, roulette tables, poker tables, blackjack tables, craps tables, baccarat tables, chips, cards and card shoes, and safes. Don’t forget to purchase business insurance to protect your business from any unwanted losses.
Finally, you will need to hire human resources for operating the casino. It is advisable to hire an HR manager first. And plan a full-proof HR policy with a recruitment structure. Hire only skilled and experienced manpower for a smooth operation.
8. Select the Casino Games
There are different types of casino games that are very popular nowadays. Some of the most popular casino games are
Basically, slots are a specific type of machine. It plays a number of different games. Here, a player inserts coins into the machine. Then they pull a handle or press a button. This causes the wheels to spin. When the wheels stop, the player gets paid based on the pattern of symbols.
It is a card game. Here, an individual can play the game with a dealer. The dealer deals out two cards to each player and keeps two cards. The dealer has one card face up and one down. The players take turns trying to get as close as they can to 21. The player calls “hit” to get a card and ends their turn. A player can also call “double.” They can only get one card and their turn ends. If a player has two identically numbered cards, they can split.
Basically, roulette is a table game. The table has numbers 0-36 and 00. It has additional betting for even-odd, red-black, low 18-high 18, low/middle/high 12, and for the first/second/third columns. The dealer spins the wheel clockwise. Then, they roll a ball counterclockwise. The ball lands in a numbered slot on the wheel. All bets that correspond with the number win.
Poker is one of the most popular casino games globally. It is also a game of five-card hands. Hands are ranked from lowest to highest. The order of hands is a high card, pair, two pairs, three of a kind, straight, flush, full house, four of a kind, straight flush, and royal flush. The player with the best hand wins.
Craps is a dice game. Here, the players make wagers on the outcome of the roll, or a series of rolls, of a pair of dice. If a seven or 11 turn up on the first roll of the dice, the shooter wins whatever they bet. If the shooter rolls two, three, or 12 on the first roll, they lose the money, but not the dice. When the person rolls a four, five, six, eight, nine, or ten that number becomes their “point.” The shooter keeps rolling until their “point” turns up again for a win or until the person throws a seven and loses the money and the dice.
9. Security System in Casino Business
In the casino, there are large amounts of currency handled within the premise. Hence, it raises the possibility of happening crimes. Therefore, you will need to take security aspects very seriously. One of the most basic steps you can take is CCTV camera installation. Besides a specialized surveillance department, you will need to take care of physical security too.
10. Promote Your Casino Business
Basically, the casino is an upscale entertainment business. So, you must promote your casino in every possible option you have. Make your casino inauguration a grand function. Aware of the media about the opening. Prepare a media kit for the reporters. Invite the celebrities on an opening day. Advertise the inauguration ceremony in both electronic and print media. Try to collaborate with travel and leisure holiday companies. Promote your casino business on the travel blogs too.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.