Can You Afford to Skip the Casino Feasibility Study?

The idea to develop a casino is often driven by circumstances such as having sub-optimized space in the foyer of a hotel and the need to fill the gap in hotel occupancy or the availability of a permit as part of an investment plan. All too often the idea develops a life of its own and the next step is the creation of a casino’s design (that closely matches the vision of the development team of what gamblers want) and the beginning of construction. This is followed by the search to manage the joker123 casino. The problem is that there’s a myriad of misconceptions about gambling and casinos which can lead developers to fall every time! There’s more to come on that, but let’s look at what the top operators approach things…They begin with a thorough understanding of the market, its capacity and size, disposable income, access to competition (for any entertainment) as well as market-specific requirements and compatibility of their player สล็อต profiles with other users of the resort, hotel or complex of entertainment. This information forms the foundation for the rest of the feasibility study which determines the potential number of visitors , their frequency of visiting, the length of the typical gaming session and the average stake. Further, projections of the capacity requirements in terms of floor space, equipment and operating time are created. Then the financial spreadsheets are created to give a substantiated and considered opinion on profit, capital expenditure as well as joker123 returns on investment. But more than just the figures, the feasibility involves the mind on how to maximize the chance, and on weeding out any errors and flaws, and the requirements for a successful entry into the marketplace. The feasibility does not have to be a lengthy and costly process conducted by a renowned academic. What’s needed in the initial stages is to understand whether you have a rough diamond or a useless glass chip. A expert casino consultant is in a position to provide an initial feasibility report at reasonable cost in just 10 working days, providing not only an opportunity to make a final decision on the concept or opportunity that is in front of you, but also providing an overview of potential opportunities. Let’s take a look at some of the risks…

“license to print” or the “license to create money” story is surprisingly common belief about casinos, and it seems to prevent people from conducting all of the usual due diligence and care that would be required in the restaurant or shop screening exercise. A few examples are listed below. A large casino was developed in a place where there are restrictions placed on maximum stakes of slot machines. The expectations for revenue from the slot machines were heavily relied upon to make the casino financially viable. A revenue capacity model was run on the slots by an experienced manager days before opening the casino, it proved that there was physically impossible to generate the required slot income with the quantity of machines being installed… Naturally, the casino did not meet the expectations. A huge casino built in Britain by a US operator failed miserably because it didn’t understand the need for live gaming, or the mobility of players on the market. A British company had a disastrous experience in Las Vegas because it didn’t grasp the requirements of customers and produced fatal design flaws.

The “James Bond” image is another well-known myth about casinos and players. There is a principle called the Pareto Principle applies heavily to casinos, with about 80 percent (or more) of the revenue being generated by 20% (or more or less) of visitors. This 20% doesn’t mean that people don formal attire for a casual night out; it’s more evident in the regular patron who can feel at home in the casino in comfortable casual clothes. The non-initiated 5 Star Hotel manager is often astonished by the sight in his or their lobby of “non-James Bond-ness” or, as we like to say, of the casino patrons! “Where’s that casino manager, he’s obviously got this all wrong…” And on goes the conflict-of-interests. The feasibility study will allow the company to spot these situations that are conflicting and to create solutions such as opening a separate casino entrance and differentiating F&B rates and standards within the casino and the hotel.

I am aware of an incident where executives from a few companies went to great lengths to suggest the creation of a massive caravan park on the grounds of an international casino resort located about two hours from a major city. The resort was the only casino within the 4 hour driving distance from the city. The executives proudly began to unveil their polished and detailed plan to greatly draw more people to the resort however, to their astonishment they were swiftly disqualified by the CEO. They were not aware that the vehicles on the roads would slow down the 20% of visitor who contribute 80percent of the revenue and the significance of such reduction in the time of gaming!

The feasibility report will outline some of the major drivers for the casino, and allow you to assess the goals of the business. It will help you avoid serious or fatal flaws and provide you with the greatest chance of maximising your chances. You’ll be able to see that’s a fantastic result for just 10 days of fees!