Economic Efficiency and Features of Micro Casino Management

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What Is a Micro Casino

This is a place with a limited number of slot machines and card tables located outside of a resort or a dedicated gaming zone.

Characteristics of small premises:

1. Autonomy. Compact establishments are not associated with hotels and other venues of this kind (restaurants, bars, and concert halls). Most often, they are located in separate rooms and operate autonomously.
2. Different formats. Micro casinos include land-based clubs with slots and card tables and mooring (permanently docked) or excursion river vessels. Much depends on the chosen jurisdiction and its legislation.
3. Restrictions on the number of equipment. Business owners are allowed to install gaming cabinets, video solutions, lottery and bingo terminals, as well as consoles but in limited quantities. Smaller entertainment locations can also have card, poker, and roulette tables.

The key difference between compact and classic casinos is their scale. In the first case, we are talking about tiny establishments with an authentic atmosphere, while in the second case, the premises are huge.

Where You Can Find Mini Gambling Venues

They are quite popular in various jurisdictions. As a rule, these are countries with legalised offline betting and centuries-old traditions in this field.

United Kingdom

The Gambling Act of 2005 defines a micro casino as:

• an establishment with a maximum area of ​​up to 1,500 sqm, while the size of the hall itself should not be less than 250 sqm;
• a venue on the territory of which the exact number of slot machines does not exceed 80 sqm;
• a location in which the ratio of gaming cabinets and card tables is 2:1;
• a hall where slots of categories B1–D are allowed to be placed.

The document also determines the regions where licensing authorities operate. They issue permits for the work of smaller casinos and control the activities of entrepreneurs. In the UK, these are North-East Somerset, Luton, Scarborough, Torbay, Wolverhampton, and other counties.

It is worth noting that in the United Kingdom, micro gambling establishments are in great demand among the population. This is affected by both centuries-old traditions and the support from the government (and especially local officials).

USA

Currently, land-based casinos are allowed in 30 states. Each of them has its legislation in this area. The majority of smaller venues are situated in Indian reservations and distant towns, unlike large-scale complexes in Las Vegas, Atlantic City, etc.

In 2017, the federal authorities of Pennsylvania were the first in the United States to approve the creation of compact gambling premises.

Law No. 271 on the expansion of the entertainment business defined the following characteristics of such locations:

• the number of slot machines in one room (from 300 to 750);
• the quantity of tables for playing cards, poker and roulette is up to 40;
• the minimum bet in games is $0.75;
• restrictions on the placement of access points (no closer than 25 miles from already operating establishments).

The Pennsylvania Gaming Control Board issued 10 licences for managing micro casinos. The economic impact for the state was $127 million. The sum was generated from the sale of permits, paid taxes, and infrastructure investments.

Smaller venues were opened in Berks, Cumberland, Beaver, Westmoreland, and York.

China

In the country’s gambling capital, Macau, the described type of premises is quite popular. The local press often uses the term “satellite casinos” in relation to such centres.

According to the law No. 16/2001, commercial entertainment for money can be provided only by the initial concessionaires:

• SJM;
• Galaxy Casino;
• SA;
• Wynn Resorts (Macau) SA.

Additional permits have also been issued to several sublicensees:

• MGM Grand Paradise, SA;
• Venetian Macau, SA;
• Melco Crown, SA.

“Satellite casinos” do not fall into any category, but they still exist and bring profit to their owners.

Smaller establishments in Macau have gaming tables and floor cabinets. Such companies obtained long-term certificates from the authorities.

The key difference from large resorts is the lack of land in their possession. Most operators rent premises and make monthly deductions to the public budget.

India

Most micro venues are located in the states of Goa, Daman, and Sikkim. Basically, these are vessels that sail in the coastal zone and accept visitors. The government allows this format of work and issues the related licences.

Benefits of Launching a Smaller Casino

Let us consider why many entrepreneurs are currently paying attention to such projects.

Optimisation of Expenses at the Start

Opening a compact hall will cost less compared to launching a huge resort.

Main cost-cutting sources:

1. Premises. In smaller casinos, the usable area is not so big, which is why operators save a lot on the purchase or lease. There are no huge additional zones, such as recreation facilities or utility rooms.
2. Equipment. Optimisation of expenses is possible due to the acquisition of less machinery (gambling cabinets, lottery terminals, consoles) and auxiliary objects (computers, surveillance cameras).
3. Furniture. The number of tables for playing cards, poker, or roulette is also limited. Therefore, entrepreneurs will not need so many chairs, sofas, bar counters, and boxes, as well as lockers for storing chips, tokens, and cards.
4. Licence fees. Most jurisdictions do not have a single fee for a permit. The price of the document depends on many factors, including the area of ​​the establishment, the number of units of equipment, and the location. It is logical that the cost of a certificate for a compact hall will be less compared to a large complex.

Reduction in Operating Costs

Among the mandatory expenditures, we can name the following:

• staff wages;
• monthly rent;
• housing and communal services (electricity, heating, and water supply);
• rental of program components (gaming, financial, and security software);
• payment for video surveillance, etc.

Managing a mini-casino is much easier and less expensive. In this case, businessmen do not need a huge staff. They can have only 2 or 3 managers and several croupiers. Such services as bookkeeping and legal supervision can be outsourced.

Government Support

Those municipalities that are located far from the capital and resort regions are interested in opening smaller venues. In this way, the authorities hope to balance the budget, receive an inflow of investments, and increase revenues to the treasury.

The construction of micro casinos creates new jobs and stimulates the development of infrastructure projects. In addition, related businesses, such as retail outlets or sports pubs, can appear near compact establishments.

These companies consistently pay taxes, which is the reason why they are actively supported at the municipal level.

Smaller Gambling Premises as a Tourist Attraction

Opening a compact hall with an authentic atmosphere is a great chance to attract a solvent audience and popularise your brand in the international arena.

Let us consider which micro casinos are most in demand:

1. Slots-A-Fun. This is the smallest venue of this kind in the world, founded in 1979. The facility is located in Las Vegas and has a dozen slot machines and tables for playing poker or blackjack. In the establishment, there is also a bar, as well as a small corner with bowling alleys. Each guest receives a free pack of popcorn.
2. Deltin Caravela. This is a small ship sailing in the river waters of Mandovi (India) and the coast of Goa. Players can try their luck at 17 tables designed for poker, baccarat and roulette.
3. North Cadbury Court. The hall has a capacity of only 30 people. It is located in a historic mansion in the south of Great Britain in Somerset County. The venue sells alcoholic beverages. The staff also includes several professional croupiers.
4. Saloon No.10. The micro casino is located in the city of Deadwood in South Dakota. Its area is 3,000 square metres. The interior is made in a Western style with a reference to the culture and customs of the Wild West. The furniture here is simple, solid, and made of natural materials.
5. Wildfire Casino & Lanes. The compact hall is considered the hallmark of Las Vegas. In addition to card tables and slot machines, there are several bowling alleys.

The Main Things about the Development of Smaller Gambling Locations

Key features that operators need to take into account:

• Micro casinos are distinguished by their area, autonomous work, and restrictions on the number of slots and card tables. Such establishments can usually be found far from large resorts.
• The advantages of having compact premises include reduced start-up costs and simple management. Municipalities actively support the owners of such companies.
• Smaller gambling venues are an effective tourist attraction. They are especially popular in the USA, China, India, Great Britain, and other countries where entertainment for money is well developed.

We also offer the following useful services:

• connection of payment systems;
• security software installation;
• integration of affiliate services;
• marketing promotion, and much more.

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