Will our casino be losing, if I hold these slot tournaments?
January 29th, 2010 at 5:18:17 AM
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I am planning to hold five slot tournaments here in our casino in the Philippines.Twenty participants each tournament.Entry fee of Php5,000 per participant per tournament.This entry fee will be inputed to each participant's credit as his initial capital per tournament.Each tournament will last for 45 minutes play. Each participant can add any amount of capital/money during the 45 minutes play. At the end of 45 minutes, the play will be stopped and the turnovers from the machine of each participant will be taken and recorded. All credits after the play will go to the participants. Top three participants with the highest turnovers per tournament will be given prizes. 1st prize is Php20,000, 2nd is Php10,000 and 3rd is Php6,000. For the five tournaments, the casino will also give Php500,000 for a participant who can win three tournaments of 1st prizes. Pls. note that the 5 tournaments will have different tournament dates.If no participant will win the three 1st prizes, the Php500,000 prize will be cancelled/revoked. Our summary of expenses after the five tournaments will be Php180,000 (Php36,000 x 5) plus Php500,000 (if won) or a total of Php680,000. Pls. note also that our tournament machines can accept minimum bet of Php1 to a maximum of Php500 (multiline machines)per game.
Question: Will our casino be losing if we hold these slot tournaments?
Question: Will our casino be losing if we hold these slot tournaments?
January 29th, 2010 at 6:24:16 AM
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If you cant work this out yourself, you really should not be running a casino.
The first inital flaw I see is that your entry fees will not cover your costs if the same person wins three tournaments, which whilst highly unlikely could happen. You need to raise your initial entry fee to 6800 to definately cover costs and break even,assuming all 20 spots in the tournament are taken. More if you want a definate upfront profit or if not all spots are filled.
If I understand correctly, the players may purchase extra credits during the tournament, which could lead to a greater profit, but is a higly variable number.
EDIT - Having read through this again, it looks to me like even more of a losing proposition for the casino. As all entry fees are given as credit, and all winning credits are turned over to the player, as well as prize money, where exactly do you propose to make any money off this? unless the machines are set for a payout of around 50% and patrons shovel money into them in the vain hope of winning.
The first inital flaw I see is that your entry fees will not cover your costs if the same person wins three tournaments, which whilst highly unlikely could happen. You need to raise your initial entry fee to 6800 to definately cover costs and break even,assuming all 20 spots in the tournament are taken. More if you want a definate upfront profit or if not all spots are filled.
If I understand correctly, the players may purchase extra credits during the tournament, which could lead to a greater profit, but is a higly variable number.
EDIT - Having read through this again, it looks to me like even more of a losing proposition for the casino. As all entry fees are given as credit, and all winning credits are turned over to the player, as well as prize money, where exactly do you propose to make any money off this? unless the machines are set for a payout of around 50% and patrons shovel money into them in the vain hope of winning.
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