Opening a casino costs millions if you go in a physical building, by land. An alternative is an online casino, which can cost anywhere from $250 thousand to over a million dollars to start and run. A riverboat casino costs the same (or more) as a land-based casino, ranging from $5 million to $20 million.
Opening a casino is a huge investment, although establishments are wildly popular in the US and around the world. If you want to own one of these places, it’s important to understand both start-up and running costs.
Remember that operating expenses usually make up about two-thirds of the casino’s income. So, you need to be successful if you plan to make a profit.
Before you start budgeting your casino, you need to make sure that it is legal in the area where you plan to open your establishment. Physical commercial casinos are only legal in a few regions of the US, so make sure you do your homework ahead of time.
If you plan to operate in a state where casinos are allowed, you will need to apply for the appropriate licenses and permits. For example, in Colorado, the business license fee is around $10,000, and that’s before you even start the building process.
Casinos usually have an elegant or upscale look. This is necessary to create an environment that is attractive to high rollers. However, this style comes at a price. You will have to plan for expensive floor tiles, high ceilings, high quality carpet, and furniture that can withstand the wear and tear of visitors.
The running costs of owning a casino are also quite high. You will need to plan for things like bounties (to get big spenders back), salaries, license fees, taxes, alcohol, and the cash you’ll need to pay out to the winners.
Cost Factors for Opening a Casino
Location
One of the biggest expenses you need to consider is the land on which you will build your casino. If you want to open a casino without spending so much money, you need to do a little research and buy land for a good price.
The size
The next thing to think about is how big your casino will be. The largest and most successful casinos have a huge selection of games and a massive layout. For example, the WinStar World Casino in Tuckerville, Oklahoma has over 8,000 slot machines, 55 poker tables, and 400,000 square feet of casino space.
The most successful casinos tend to be attached to hotels and offer more than just gambling. They have bars, entertainment facilities and a safe and clean place to stay. This encourages guests to spend more time at the casino, drink and have a great time spending money.
Slot machines and electronic games
Whether you’re looking to open a land-based or river-based casino, slot machines are definitely on your list of games to buy. They are one of the most popular places in the casino and they are definitely profitable.
A brand new slot machine usually costs between $15,000 and $25,000. Many of these electronic games are themed and licensed to major film, television, and other trademarked and copyrighted franchises. Thus, you will have to pay extra to get these branded machines.
Also, these initial costs do not include repairs and maintenance, especially in the event that a visitor spills a drink or otherwise damages the machine.
So, if you want to have at least 500 slot machines, you will need to budget for around $10 million in funding for games alone.
The cost of tables and furniture for a casino
When you decide to open a casino, you also need to consider the cost of gaming tables and furniture. These are expensive, but necessary accessories for your establishment.
A professional blackjack table can cost between $4,000 and $15,000, depending on the style and finish. You will need several of these tables depending on how big your casino will be and what games you will be offering.
These are just a few examples to give you an idea of how much you have to pay to stock your casino with table games.
The cost of opening an online casino
A much easier option than buying land and building a casino is to launch an online gambling platform. Online casinos are becoming more and more popular because visitors can enjoy the game without leaving their homes.
Developers can charge anywhere from $100,000 to $300,000 to create software for your casino. Often this will also include royalty agreements whereby you will continue to pay the developer for a license to their product for a specified period of time.
Cost of opening an online casino is about 1.5 million dollars.
Final Thoughts
If you want to open a casino, you will need a large amount of funding or funding to get the job done. You will need to choose a location and do a lot of research to find out if the casino is legit and if so, where can you host it and what licenses will you need.