If it’s legal in your state, opening a casino can be a brilliant way to make money. From Blackjack to Slot Machines, there are so many ways to make profits by opening your own casino.
After all, the house always wins!
Still, opening your own casino is no easy feat, and there are several steps involved in the process.
Here we look at how to open a casino, step by step.
What You Need To Open A Casino
You can’t just buy some roulette wheels and call it a day – there is a lot you need in order to start your own casino.
Here are the basics:
- Be in a legal gambling state/region
- Solid business plan
- Initial capital
- Know-how of the gaming business
- Know-how on different gaming platforms (slot machine knowledge etc.)
- Experience in the gambling industry
- Venue/land for casino construction
- Gaming license application
- Registration with the local authorities
Once you’ve got the basics down and your casino is being constructed, you need to start creating buzz and getting the word out about your new casino.
Conduct aggressive advertising campaigns and publicity through print and digital media to help the venue secure interest for opening night and beyond.
If possible, invite some Hollywood, television, or public celebrities for the opening event. Make the opening a grand event by offering good discounts, money coupons/vouchers, and free gifts to all the attendees on the day of opening.
Make a night to remember!
Starting a Casino, Step by Step
Despite the legal limitations in some US states, there are over 1,000 active casinos in the USA today, worth a total of $240 billion and employing more than 2 million Americans directly or indirectly.
It’s easy to see why land-based casinos remain popular in the age of online gambling – there’s something about the glamor and sophistication of a casino that makes betting on reds and blacks more exhilarating and fun in person.
So, if you wanna be a successful casino tycoon, here’s what you need to do:
1. Find a city/state where casinos are legal
First things first, decide where your casino is going to be.
18 US states currently permit commercial casinos, and 29 legally allow tribal casinos (on Indian Reservations) in the US. Your selection is naturally limited, but there are plenty of popular regions to choose from, including Nevada, California, and Florida.
Before landing on a target city/state for your new casino, consider the local economy, the people who live there, and whether the area is desirable for tourists.
There’s no point building a great casino in the middle of nowhere!
2. Research the local gambling industry for insights
Once you know that the state allows the casino business, you need to undertake a preliminary study of the city to decide whether a casino will do well in the area.
Your preliminary project report must shed light on the following aspects:
- Are locals and tourists already prevalent in the gaming industry?
- How many local people are involved in online gambling in online casinos?
- How many casinos are already in the business in the area, what is their financial report of the last few quarters?
- Is any local casino suffering losses, if so, then why?
- How much revenue will likely be generated compared to your investment?
- Other aspects like availability of local manpower, skilled/unskilled workers nearby, and how long it will take to recover your initial investment costs.
Once the project report is ready, study it with industry experts and decide whether the location is suitable for the new casino or not.
It’s essential to meet with consultants who know the local space well!
Keep in mind the prospective market available, transport facilities, other big business houses, and the location of other casinos. The location has to integrate well with the local public custom, culture, habits, and financial status.
3. Calculate the capital required and expected ROI
Once you have received the project report and all the legal information and market have been obtained, you need to raise capital for the project.
For setting up a good casino in the USA, at least $500K in funds is required. The rate of return on investment should also be considered while planning a budget.
However, the rate of return on investment (ROI) should not be included in financial planning for about a year.
On average, the profits may start coming in after 6 months of successful operation, and after that, a profit of $50K may be expected.
The projected capital requirement should cover the following:
- Complete construction and readiness of the casino, including the cost of land and construction
- All the required permits of fire and electrical connections
- All municipal and other authority permissions, including registration of the business and license to start the business
- Cost of equipment and machinery, advertising, opening ceremony, and initial discounts to attract the customers from day one
- Salaries and allowances of the employees for 2 months
- A certain amount of funds to be kept as a backup plan should the requirement arise
4. Get Your Gaming License and Register
Once the location has been scheduled, you must register the casino with the local authorities.
This is compulsory!
Without obtaining the required registration, no construction or material procurement should be started. There is always the possibility that your application will be rejected.
There may also be some restrictions from the government authorities.
A separate gaming license is also required for any casino. Therefore, after the successful registration of the casino, a gaming license is to be obtained from the authorities before starting the construction.
5. Construct your new Casino
Once the required licenses have been obtained, the construction of the casino can be started.
The construction should follow the project timelines, any delay will overrun the projected finances, and the project may not remain a viable business.
There are always unforeseen problems when constructing large projects like this, so try to leave extra time and money in your budget to allow for these problems.
6. Buy equipment and train your employees
Upon near completion of construction, all the required equipment, machinery, furniture, slot machines, and other pieces of equipment must be procured.
You can’t have a casino without any slots in it!
You need to start hiring and training your employees at this point – everyone from Roulette Croupiers to Security and Kitchen Staff. If you can hire people who have worked in the gambling industry before, that would be preferable.
Naturally, you’ll want to look for people who have experience in places like Las Vegas and Atlantic City.
7. Prepare for opening night!
Once all the preparatory actions are in place, aggressive marketing strategies and campaigns are to be undertaken. You need to capture the attention of the local media and make a real spectacle on your opening night.
It’s an unspoken rule that any casino opening night needs a celebrity to attend or cut the ribbon officially. This associates your casino with the glamor of the celebrity and also helps to drum up interest in your new venue.
If a loved TV star or Musician comes to open your casino, people will come to see them. It’s that simple.
Make sure you’ve got plenty of money for your opening night. This needs to be a night to remember, and all your guests need to feel special that night. Leave no stone unturned and spare no expenses to make your opening night extra special.
How much does a casino owner make a year?
Unsurprisingly, owning a successful casino is a very good way to make money.
The median salary for a casino owner in the US is $203,842, however, the more successful casino owners can easily make over $1 million every year.
The house always wins, which is good news for your wallet!
Building a casino is no easy feat, especially with all the restrictions in place in the US. Nevertheless, with the right preparation, good research, and a bunch of capital, you can open a casino that’s a real money-making machine!
Do you have any advice on how to open a casino? Maybe you’ve got some experience in this industry? Feel free to leave a comment below!