Exam 2 Flashcards
Integrated resort
High-quality mixed-use destinations offering multiple world-class attractions, including hotels, restaurants, retail, convention facilities and entertainment.
Profit structure of integrated resorts
MULTIPLE sources of revenues
business model of slot department
Coin-in or voucher operated device
coin in
represents the dollar-amount of wagers placed in slot machines, over a specified period of time BUSINESS VOLUME INDICATOR
Handle
handle: players had to pull a handle mounted on the right side of the machine to activate the game in the past when the machines were not equipped with buttons BUSINESS VOLUME INDICATOR
Win/loss
the difference between the dollar-amount of wagers placed and the dollar-amount of all payouts, over a specified period of time
Payout forms
coin-out, voucher-out, hand-paid jackpots, and progressive accruals
Hand paid jackpots
issued by casino personnel; substantial top awards
Progressive accruals
dollar-amount of wagers diverted to the progressive
jackpot meters, which display the dollar-amount of the progressive jackpots (belongs to the betting public). Casino recognizes it as losses
Actual hold percentage
the percentage of buy-in money (also chip-in money) that a table game keeps — casino’s slot win/(loss) divided by the dollar-amount of wagers placed, over a specified period of time
Drop
net dollar-value of the contents of each table game’s drop box
Markers issued
the dollar-amount of credit issued to players by the casino
Markers issued formula
Markers Redeemed + Cash + Gaming Cheques + Foreign Gaming Cheques
Markers redeemed
the dollar-value of payments made against outstanding marker balances, resulting from marker issues
Gaming Cheque
like chips; used instead of currency (sometimes referred to as biscuits)
- high-limit cheques or poker cheques
- greater circumference makes it difficult to store in standard table game tray
foreign gaming cheques
dollar-amount of all gaming cheques from other casinos
hold percentage
the amount a casino gains from a game being played by players. It can be used to determine the earnings from a table
hold percentage formula
win/(loss) divided by drop
Win (loss)
the difference between the dollar-amount won by winning players and the dollar-amount lost by losing players
Write
the dollar-amount of wagers placed, serving as a measuring of business volume in both the race book and the sports book
rake
- (Hourly fees) dollar value of casino’s fee. Collected from the pot
- Compensates the casino for supplying and staffing the games
- Could be thought as win revenue. NOT a loss
Pot
-dollar value of all player wagers placed on a hand of poker.
Cost of sales expense
represents the resort’s acquisition cost of items sold to its customers
Comp expense
represents the recorded cost of complimentary awards to the casino
Comp expense 2-1
a form of reinvestment in players
Comp expense 2-2
a partial refund of the casino’s win
comp expense 2-3
recovery system of service delivery failures
payroll expense
refers to the dollar-amount of all salaries, wages, taxes, and benefits bestowed upon the employees and management
operating expense
include items such as gaming taxes, supplies, and administrative expense
Integrated resort revenue rankings
- Hotel (26%)
- F&B (25%)
- Table games (23%)
- slots (18%)
- entertainment (8%)
Integrated resort profit rankings
- hotel (38%)
- slots (27%)
- table games (15%)
- F&B (15%)
- entertainment (5%)
Integrated resort Typical hold percentage on table games
around 13%. Table games very expensive to operate
Integrated resort Slot operating/profit summary
Great profit producer. Much less expense than table games
ebitda
earnings before interest, taxes, depreciation, amortization
Integrated resort Race and sports book profit summary
income contribution is almost negligible compared to that from table games and slot departments
Integrated resort Poker profit summary
Negligable
Integrated resort F&B operating summary
Very high cost
Political traction of integrated resorts
- Non gaming revenues > gaming revenues
- Integrated resorts are seen as RESORTS FIRST, CASINOS SECOND
Repeater clientele
repeater market
A frequent visitor; local residents and patrons residing within a short drive of the property (average 3 trips/week)
repeater market examples
Atlantic City, Macau – drive up business, day tripper market
Destination market
destination clientele
Las Vegas = The most pure form of a destination market; majority of patrons are tourists from outside of Nevada.
(Clientele visits avg 3 times/year)
Repeater market resorts revenue rankings
- slots (46%)
- F&B (26%)
- Hotel (13%)
- Table games (9%)
- All other games (6%)
Repeater market resorts profit rankings
- Slots (66%)
- Hotel (16%)
- F&B (11%)
- all other games (6%)
- table games (1%)
Repeater market slot summary
- Spend per trip is smaller than integrated market, but greater number of trips
- The locals are more sensitive to the casino’s advantage, resulting in slot machines with lower house advantages
- The EBITDA contribution from the slot operation is much more critical to the success of the repeater-market property
Repeater market: if comps sales are removed from the Off-Strip income statement
Operating income becomes operating loss
Repeater market: if Comp sales are removed
expense margins would be overstated making it difficult for management to assess the operating efficiency of the outlets
CRAPS crew
– the group of dealers required to operate a crap game; usually comprised of Boxman, Stickman, Second Base, Third Base. One of these four are on a 20 minute break.
One hour rotations before break
Dealers work 80 minutes
Sitting bank
fifth dealer in lieu of boxman
no supervisor duties
responsible for counting buy-ins, game protection, oversight of payouts
not responsible for dealer duties but helps dealers w/ difficult payoffs
receives full share of dealers’ tips, wears dealers uniform
stickman
handles dice and proposition box wagers
apron
the area between the pass line and the edge of the table – not printed on actual craps layout
Boxman location on craps table
upper center; between 2nd and 3rd base
2nd base location on craps table
upper left; to the left of boxman
3rd base location on craps table
upper right; to the right of boxman
stickman location on craps table
bottom center. by himself
boxman duties
observes all actions on the game
responsible for protection/identifying cheaters
responsible for customer service
counts $$
Stickman duties
runs game
responsible for proposition box wager.
announces outcomes of throws
pronounces numbers distinctly to not mistake them for other numbers (eleven pronounced “yoleven,” nine pronounced “nina,” five pronounced “fever five”)
Base dealers (2nd base, 3rd base) duties
collect/pay bets
also look for cheatings
CRAPS TERMINOLOGY: naturals
7 or 11
CRAPS TERMINOLOGY: craps
2, 3, 12
CRAPS TERMINOLOGY: points
4, 5, 6, 8, 9, 10
How to win pass line wager
roll a natural (7 or 11) on the first roll
OR
roll your point after the first roll before you roll a 7
CRAPS TERMINOLOGY: throw
A single toss of the dice
CRAPS TERMINOLOGY: roll
Includes all throws between pass line decisions. A roll could contain any number of throws. 2) Sometimes used in lieu of throw.
CRAPS TERMINOLOGY: Decision
The outcome of bet. Ex) a win, loss, or tie. A pass line decision can occur after one throw when the come-out throw is a natural or craps number, or it can occur after multiple throws when a point is established on the come-out throw.
CRAPS TERMINOLOGY: Hand
Includes all throws from a shooter before she loses the dice to the next shooter. For example, given an established point, a pass line bettor would lose the dice after throwing a seven. A hand could be as brief as two throws or it could include multiple throws or rolls/decisions. For example, a shooter could make several points before losing the dice. 2) Hand is also sometimes referred to as a roll.
CRAPS TERMINOLOGY: Seven-out
The act of throwing a seven before throwing an established point. For example, a pass line bettor, this would result in a loss.
CRAPS TERMINOLOGY: Come-out throw (or roll)
The throw immediately following a pass line decision.
CRAPS TERMINOLOGY: right bettors
: One of two classifications of bettors. Ex) right bettors and wrong bettors. Right bettors are those who bet on the pass line and make wagers such as come bets, buy bets, put bets, and place bets. With the exception of the come-out throw, a seven will cause the right bettor’s wagers to lose.
CRAPS TERMINOLOGY: wrong bettors
One of two classifications of bettors. Wrong bettors are those who bet on the don’t pass and make wagers such as don’t come bets, place bets to lose, and lay bets. With the exception of come-out throw, a seven will cause the wrong bettor’s wagers to win.
CRAPS TERMINOLOGY: off on the come out
: A default option that prevents bets surviving a pass line decision to be classified as ineligible for a decision on the next come-out throw. Ex) players might have come bets with odds or place bets that remain in play after a point is made. If these bets were to remain in play and a seven were tossed on the ensuing come-out throw, the bets would lose. However, the same seven would cause a pass line bet to win. On a dice game, it is assumed that place bets, buy bets, and the odds portion of come bets are off on the come-out throw, unless the bettor request otherwise. This rule allows all right bettors on the game to cheer/hope for the same result. That is, if these bets are off, tossing a seven (or any other number) on the come-out throw will have no effect on them.
CRAPS TERMINOLOGY: field
self service… a one throw bet that can be placed at any time
Craps self service bet types
- pass/dont pass
- come/dont come
- field
- big 6 or big 9
CRAPS TERMINOLOGY: place bets
bettors bet on a specific number (4, 5, 6, 9, 10). REQUIRE DEALERS ASSISTANCE TO BET ON THESE
Hard way bets
hardest way to throw a 6: (3 & 3). has to roll that before rolling an easier 6 or 7.
