Lainie Wolf wrote:
Brett, I have to admit -- I know almost nothing about "regular"
poker. I thought that the average rake was about 7% -- and the
casinos don't put their own money at risk. Is this not correct?
Plus, I thought that poker players don't get many of the other perks
that slot players get, making them just as (if not more) profitable
to the casino than some other players.
I couldn't really find stats on poker's contribution to casinos
bottom-line profitability, but logic dictates that if the casinos are
adding (and expanding) poker rooms (and removing other games to do
so), than that's because poker increases profitability relative to
other alternatives.
What am I missing?
Most poker rooms take a rake of anywhere from 3-10%, so your average of 7% is
probably fairly close. The main thing is, most poker rooms are fairly small
compared to the amount of floor space that is taken up by much more profitable
slot machines. Sure, slot/vp players earn more perks (most of the time... I
actually earn more players club points per hour in my local poker room that my
wife does on slots) but I'd imagine in the long run, the slots and table games
are still more profitable.
It makes good business sense to add on extra poker space during the latest poker
"boom". With poker players come non-poker playing spouses, SO's, and friends.
Less maintenance, less need for surveillance (though it's certainly not
overlooked, but since the players are playing against each other instead of the
house, the house isn't as concerned about cheating and "advantage" players), not
to mention the ability to bring in tournaments, which would certainly add to the
bottom line.
I certainly would like to see some actual statistics to back up whether or not
the poker rooms are a true "profit center" or if they're just installed in order
to gain profit in other areas due to parasitic play, i.e. I play poker and my
wife plays slots at the same time. If she's dumping two or three Benjamins in to
the slot machines during the time I play poker and I'm playing even, they're
making their money from her, not me. So it's to their advantage to entice me to
come play poker and bring my wife, or my non-poker friends that will play craps,
roulette, BJ, slots, etc.
--Brett