Other Income at Casinos
It is easy to believe that casinos earn all of their money from gambling. Of course, a hefty part of the profit comes from the gaming. The house sets up an edge so it makes some profit on every game, whether the player wins or loses. However, few casinos stand alone. Many of them are casino-hotel-resorts, with the casino only a small entity within an entire conglomeration.
Perhaps the “high rollers” get to stay free, but most people who go on a casino-related vacation are going to pay for a hotel room. Some casino-hotels will provide cheap room rates as an incentive to stay and play, but it is just as likely that the room will cost a couple hundred or more per night. Higher cost hotel rooms usually come at independently owned casinos because it is a higher source of revenue.
Food and Beverages
Casino patrons need to eat and drink, and that’s good for the casino. Food and beverage revenue is second to gambling revenue at most casinos. Restaurants bring in a fair share of income for the business side of casinos, but what really generates income is the buffet. Because of their relatively low cost (even the high end buffets are inexpensive when compared to a traditional restaurant meal), they attract a lot of guests who wouldn’t normally come into the casino.
Even smaller casinos are seeing the benefit of renting out space for shopping. Larger casinos are developing entire shopping malls based on the casino’s theme. Most of the stores feature expensive, high-end products. Like the buffets, the shopping malls have provided more foot traffic into the casino. If the current shops are successful, casinos will be able to attract more businesses and, in turn, their profit goes up.
Casino entertainment is not free. Going to a show in a casino will cost at least as much as a show in any other venue, usually more. Big name stars are often able to command a higher ticket fee at a casino than at an arena, and so promoters like to schedule their performers at casinos. Casinos see revenue from any show performed in one of their theaters.