This has intensified competition around the globe. As competition increases, casinos are beginning to diversify their offerings. With increasing focus on developing offerings outside of the casino floor, nonganing revenue is outpacing gaming revenue in some markets, reaching a broader mix of potential patrons.

were among the first to implement rewards programs to track and reward player behavior

These programs provided incentives for gaming patrons to consolidate their play where they could eam more of their preferred benefits, while giving the casino company access to player behavior and value

casino floor operators can use social media activity to understand what is driving players to the casino floor, whether it's specific games they prefer or other activities around the gaming floor

along with reviews and ratings collected both for the casino and their competition, will assist in uncovering valuable information about marketwise preferences and how the casino is stacking up to the competition.

can be used to track traffic patterns around the casino, as well as to influence patrons either through advertising along popular paths or by creating diversions that purposely route patrons past attractions that the casino operators want to feature

used to determine the drivers of patron value

Thought of from the house perspective, represents amount the house will gain from a particular player or a particular game. Remember, all of these calculations are based on probability, so this figure is an estimation. This metric is calculated as average bet hours played x decisions per hour house advantage

This metric is calculated as average bet x time played speed of game house advantage (hold percentage).

This metric is calculated as coin in hold percentage. It might also consider player behavior on the specific slot machine type. For example, if the player always plays the max bet they have a chance at winning the jackpot, or some of the smaller prizes that are available only at max bets. If they don't play max, they won't win, so there's less risk for the casino

Much like other functions within the hotel or casino, for budgeting purposes, casino floor operators forecast casino floor revenue over a longer term time horizon

can help to schedule labor like cocktail servers, dealers, security, and maintenance. Can also help in forming a plan for raising and lowering the minimum bets on the table games

is the basis for calculating patron lifetime value

also described in the marketing chapter, can help to split the patrons into groups with similar behavior or characteristics beyond player value for better targeting.

is also useful for this casino floor design problem, as it can help to assess the impact of changes in this very complex system. Note that many jurisdictions have rules about how often you can change the configuration of the casino floor.

can be used to calculate the optimal deployment and schedule configuration for casino floor staff. It can also be used to figure out an optimal schedule for opening and closing table games and raising and lowering minimum bets

Only so many square feet for games, so many slot machines available, so many seats at table games.

If the seat at that table at that time is empty, it won't generate revenue. If no one is playing the slot machine between 6 p.m. and 7 p.m., it won't generate revenue.

There are peak and off-peak periods at the casino and patrons can be grouped by price sensitivity, theoretical value, and game preference

The cost of adding one more patron to a seat or on a machine is minimal as compared to the overhead for running the property

This problem starts with the right mix of games, although this is regulated in some areas. Calculating the right mix of game types involves understanding demand for each game type, the value of that demand, and the number of tables that can fit in the allocated space. This decision will only be made periodically, as the configuration can be difficult to change out once it is implemented.

The casino can control when they open and close tables. The cost associated with opening the table is primarily staffing, which, compared to revenue potential, could be minimal. It's not nothing, though, so casinos do not really want to open tables when there are no interested player

represents the amount that a player must wager per round in order to play. The casino has the option to raise or lower these bets at any time. Most casinos have moved to digital signage, so the change is a matter of flipping a switch. Many casinos will allow players to continue playing the original minimum if the minimum is raised while the player is still playing

Many table games come with a preconfigured number of players, which is indicated on the game top. However, the play experience can be impacted, positively or negatively, when all the seats are full. Casinos need to decide at what point they want to open more tables in order to spread out the number of players, or if it's better to concentrate the players at a few tables

Since the table games are dealer driven, the casino has some control over the speed of the game. The faster the dealer manages a round, the more rounds per hour and the more revenue that can be generated.

refers to the process of making large amounts of cash that were obtained illegally (like through drug deals, black market transactions, bribery, etc.) appear to come from a legitimate source to avoid government detection

refers to the act of illegally taking money from the casino, or taking money under faise pretenses, which makes it a slightly different problem than money laundering

can be as simple as trying to pass a bad check or cash in fake chips. They can also get infinitely more complicated, the organizing rings to cheat at casino games

can be used to calculate expected revenue from the casino floor or for any individual player.

similar to the term “decisions per hour” in the previous metric. It matters here how fast the game is played—whether it’s hands per hour, rolls per hour, spins per hour—the faster the dealer or machine operates, the faster the patrons lose, and the more money the casino makes.

The gaming industry has been expanding and evolving since the late nineties. Traditionally, casinos were located in destination markets like Las Vegas, but recently the number of local markets has been increasing dramatically, as states within the United States, and increasing numbers of countries outside of it, begin to issue gaming licenses.

Compared to a slot machine, a table game in general is capable of generating more revenue in the same period of time because of the size of the bets, the capacity of players per space, and the ability to raise and lower ra