Can You Afford to Skip the Casino Feasibility Study?
Can You Afford to Skip the Casino Feasibility Study?
The concept of establishing the concept of a casino is often triggered by the circumstances, such as having a sub-optimized space in the foyer of a hotel as well as the need to bridge an empty space in the hotel's occupancy or the possibility of getting a license as part of an investment plan. The concept often is given a life that is its own, and the next step is the development of a casino's layout (that neatly fits the development team's perception of what players want) and the beginning of construction. This is joker123 followed by the search to manage the casino. The problem is that there are common misconceptions about gambling and casinos that lead developers into pitfalls repeatedly! There's more to come on that, but let's examine what the top operators go about things...They begin with a thorough understanding of the market, its capacity สล็อต and size, disposable income, access, competition (for every form of entertainment) as well as market-specific requirements and the compatibility of profile of the players with the other guests of the resort and entertainment facility. This knowledge is then the basis for the remainder of the feasibility study which determines the potential number of guests, as well as the frequency they visits, as well as the duration of the average game and the size of the joker123 stake. Then, in addition, projections on the capacities required in terms of equipment, floor area and operating hours are developed. In the end the financial spreadsheets are created to provide a solid and logical opinion about the profitability, capital expenditure, and the return on investment. However, more than just the numbers, the feasibility focuses thinking on how to optimize the chance, and in removing any potential mistakes and on what is required to succeed in the marketplace. The feasibility doesn't need to be an extensive and costly exercise carried out by a renowned academic. What's important in the beginning phases is to know if you have rough diamonds or worthless glass chip. A expert casino consultant can be able to deliver an initial feasibility for reasonable cost in as little as 10 working days, giving not just an opportunity to make a final decision on the concept or opportunity at hand but also delivering the framework to screen possible future opportunities. Let's examine some of the risks... "license to print" or the "license to create money" idea is common belief about casinos, and one that seems to stop people from performing the normal due diligence and care that apply to a shop or restaurant opportunity screening exercise. Examples that come to mind are listed below. The casino is a huge one in a place where there are restrictions placed on stakes per slot machine. The revenue expectations of the slot machines were relied upon to render the casino viable. When a revenue capacity model was run on the slots by a knowledgeable manager a few days before the casino opened the casino, it proved that there was a physical impossibility to generate the needed slots income with the quantity of machines in place... Naturally the casino failed to live up to expectations. A casino of a huge size that was developed in Britain by an US operator was a disaster because it didn't understand the importance of live gaming or the mobility of players in the market. A British company had a disastrous experience at Las Vegas because it didn't know the needs of its customers and made fatal design mistakes. "James Bond," or the "James Bond" image is another common misconception about players and casinos. There is a principle called the Pareto Principle applies heavily to casinos, with around 80% (or more) of revenue produced by 20 percent (or less) of the players. That 20% does not include people who dress in formal dress for an occasional evening out, but is more typified by the frequent visitor who feels comfortable in the casino in comfy casual attire. A non-initiated manager of a 5-Star hotel is always shocked by the presence in his or his lobby of "non-James Bond-ness" shall we say, of casino players! "Where's that casino manager, he's obviously got this all wrong..." And on goes the conflict-of-interests. The feasibility study can help the company to recognize these conflicts in time to develop solutions such as providing a separate casino entrance and distinguishing F&B standards and prices in the hotel and casino. I am aware of an incident where executives from a few companies were willing to go to any lengths to advocate the establishment of a vast caravan park within the grounds of an international casino resort located about two hours drive from the major city. The resort was the only casino within the 4 hour driving-time of the city. The management team was proudly beginning to present their highly polished and elaborate plan to boost the number of visitors to the resort however, to their astonishment they were swiftly disqualified by the CEO. They had failed to recognize that the hundreds of motorhomes that were parked on the roads would slow down the 20% of guests who generate 80percent of the revenue and also the significance of a cutting down on the gaming time! The feasibility study will highlight the main drivers of the casino, and allow you to assess the goals of the company. It will assist you in avoiding serious or fatal flaws and provide you with the greatest chance of maximising your opportunity. Aren't you impressed? an excellent result for 10 days' fee!

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