xSkylarx
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November 17, 2021, 02:39:04 AM |
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If you go through the average revenue of a casino it won't look like a big money being spend for licensing. On an average a casino earns minimum of $72 million a year. How far this is true, I'm not sure about it. However if that's true mere $1 million doesn't look like a big money. Same time there are casinos that have gone bankruptcy, but those are very rare.
Agreed, and if you see a lot of casinos out there, it means they are able to pay the licensing fee, which I believe was a small amount of money to them because they are making a lot of money. If you are starting a business, you should first determine whether you can recoup your expenses while also making a profit, because it is pointless to start a business only to lose money. $1 million is significant to us (small people) because we do not earn that much money, but to them it is just a small money.
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Fundamentals Of
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November 17, 2021, 03:29:43 AM |
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Not that harsh if you take into consideration that the casino license will be valid for twenty years. That's a long period of time. $1,000,000 for a license payment for 20 years, that's actually a little cheap at just $50,000 per year. If you want to break it down a little further, you will only be averaging a little more than $4,000 a month. That's not that bad knowing that a casino is a large money-making business. It is only big as a one time payment but if you break it down, it is not really.
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michellee
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November 17, 2021, 03:30:47 AM |
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If you go through the average revenue of a casino it won't look like a big money being spend for licensing. On an average a casino earns minimum of $72 million a year. How far this is true, I'm not sure about it. However if that's true mere $1 million doesn't look like a big money. Same time there are casinos that have gone bankruptcy, but those are very rare.
Agreed, and if you see a lot of casinos out there, it means they are able to pay the licensing fee, which I believe was a small amount of money to them because they are making a lot of money. If you are starting a business, you should first determine whether you can recoup your expenses while also making a profit, because it is pointless to start a business only to lose money. $1 million is significant to us (small people) because we do not earn that much money, but to them it is just a small money. Gambling businesses can earn a lot of money from the gamblers, so if the license seems too expensive, that does not mean the casino can not pay that license. They can use some percentage of their revenue to have a license and I think they will not have a problem paying that amount because as long as they will not get a problem while running their business, that is still worth it for them. The casino owner already calculated how much their expenses were before they created their casino so they know how much money they should prepare to run the gambling business.
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Mauser
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November 17, 2021, 09:19:48 AM |
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1 million for a casino license sounds a lot compared to the cheap licences from small tax havens. The thing with licences is that they are usually in relation to the potential income the casinos can expect when it comes to larger countries like the USA. Supply and demand plays a big role for the cost of the license. I don't think Nebraska is a big gambling market, usually people go to Las Vegas or Atlanta for gambling. So opening up a new casino can attract a lot of local people who didn't have the chance before to go gamble close to their home. For a successful casino 1 million is not so much. A few high rollers could generate that income alone.
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Ulven
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November 17, 2021, 10:44:56 AM |
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This is a very interesting topic that I never thought of before. I never knew that there could be casinos in Nebraska but it makes sense.!!and This is to ensure that there are some kind of regulations that the casinos would need to abide by. The money would go towards services like some kind of childcare, transportation, and more. I'm not sure if these new changes will help with the state's budget or fighting poverty rates but I hope nebraska will have a big say in what happens.!!! It's interesting to see how different states are coming up with new reforms when they are losing money. A few years ago I remember when all casinos were illegal in the US and now it seems like they can be legal in most states. It's amazing to see how these changes happen at the state level since the federal government has been pretty strict on things that they allow or don't allow.
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molsewid
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November 17, 2021, 10:46:05 AM |
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Gambling businesses can earn a lot of money from the gamblers, so if the license seems too expensive, that does not mean the casino can not pay that license. They can use some percentage of their revenue to have a license and I think they will not have a problem paying that amount because as long as they will not get a problem while running their business, that is still worth it for them. The casino owner already calculated how much their expenses were before they created their casino so they know how much money they should prepare to run the gambling business.
Even let's say that license of a gambling business ranges from high value they don't have any other choice than signing the agreement because having a license to operate was one of the requirement for a gambling business to operate legally and could attract more loyal gamblers in their site or establishments. Also, a gambling business could for sure can cover up the expenses for the renewal of their permit to operate from the revenue because we all know that gambling business are earning well from gamblers, and to think that even in the midst of pandemic those gambling sites manage to operate online so I think the management of gambling casinos already planned it accordingly.
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Maslate
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November 17, 2021, 11:24:18 AM |
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Apparently in Nebraska if you would go according to the new reforms that might be coming forth, the casinos might have to pay 1 million to issue them a license that would work for 20 years.
I guess the amount is too high because we never know if the gambling economy will continue to be profitable in the future. Paying $1 million for the license in 20 years does not also guarantee that a gambling operator will continue to operate for 20 years because if they broke the law and the license might cease, and I don't think they'll refund the amount of the period that has not been consumed yet. Those who like to operate in this place must probably be a big business and I think there's less competition in the area due to high license fee.
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AicecreaME
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November 17, 2021, 11:44:07 AM |
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Well, 1 million for a 20 years gambling license is no big deal for a casino owner, because he could make even more than that in 20 years of his gambling business. The only risk their is if the casino he is going to start will not going to be successful, then the license price would be indeed expensive and it will be devastating for any casino owner if their business will failed. Take note about the taxes you're going to pay per year that will cost you a lot as well.
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Doell
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November 17, 2021, 12:12:21 PM |
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that's all depends on the casino capital and income maybe for casino that have a small income they will think again about taking a license ,but for a casino that is really big it's only a day the profit can even be an hour maybe if many people lose ! actually the picture you are referring to is't very expensive in the case of big casino for example curacao 40K x 12 month x 20 years = 9.600.000 us dollar !
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michellee
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November 17, 2021, 02:09:03 PM |
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Gambling businesses can earn a lot of money from the gamblers, so if the license seems too expensive, that does not mean the casino can not pay that license. They can use some percentage of their revenue to have a license and I think they will not have a problem paying that amount because as long as they will not get a problem while running their business, that is still worth it for them. The casino owner already calculated how much their expenses were before they created their casino so they know how much money they should prepare to run the gambling business.
Even let's say that license of a gambling business ranges from high value they don't have any other choice than signing the agreement because having a license to operate was one of the requirement for a gambling business to operate legally and could attract more loyal gamblers in their site or establishments. Also, a gambling business could for sure can cover up the expenses for the renewal of their permit to operate from the revenue because we all know that gambling business are earning well from gamblers, and to think that even in the midst of pandemic those gambling sites manage to operate online so I think the management of gambling casinos already planned it accordingly. Or the casino has a chance to move their business from that city and search for other cities that can be more friendly. The casino has that option, but they also hope that the license fee will not be too high for their business and they can ask for a reduction to get the license. The casino will try to have a license as a requirement to open their business in that city and I believe that a license is not a big deal for them because they can cover the fee from the revenue. The online casino seems to attract the casino owner to expand their business through the internet because they realize that if their business becomes an online casino, that can invite more gamblers from many countries to become their members. That will be more benefits for them.
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Cling18
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November 17, 2021, 02:19:59 PM |
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I doubt that there is such a thing that is too expensive for casino's even the license fee.
These casino's have a lot of investors, or sometime it's a consortium wherein they really have a lot of money to begin with. They can afford to build world class billion dollars casino in short amount of time and then started to get what they've spend and profit in the next coming years. 20 years? I think that will be enough for them to really cover everything and then some.
The gambling licensure is too expensive yet every casino site could recover from it in just a short period. It's normal to pay for it since that's the part of putting up a huge business like a casino and having a license is really an advantage since it creates a good foundation of trust especially for users.
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Jackl87
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November 17, 2021, 03:36:46 PM |
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1 Million just for the fee sounds like a lot of money and of course it also it is a huge amount of money but you also have to keep in mind that the license is valid for 20 years and that you can potentially make a huge amount of money with that license. I still think it's kinda weird that nebraska has such a high fee for casinos because i just read that nebraska has only a population of 2M people so i would guess that you don't have that many people in an area (let's say 30 miles) around your casino which means that you don't have that many potential customers like in states with a higher population density. In the end the market will regulate that by itself if 1 M for a license is too much then no one will buy it.
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Silberman
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November 17, 2021, 06:00:54 PM |
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It may look like it is a big one time fee but actually that is a ridiculous amount for a casino in Nebraska.The amount if it comes forth it means 50.000 dollars a year which any simple casino can afford it.If only a big whale,a player that plays huge amounts of money loses big it means the casino already recovered their license fee for that year,keep in mind though that in a casino usually comes much more than just one whale player,so in the end it is not an expensive fee at all.
The problem is that it is a huge barrier to entry, if the fee to get and renew a casino license was 50k each year then this is easier to pay than one million upfront, we also must remember that while the mental image that most people have about casinos are those giant casinos that are also hotels like the ones you can find at Las Vegas and that can easily pay that million, the majority of the casinos are in fact small without luxurious installations and I doubt they will have the money to pay for something like this.
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jrrsparkles
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November 17, 2021, 06:12:23 PM |
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Casino business is only for the rich people so now they are taking it to next level of asking the complete fee upfront with more regulations but it all depends on the casino and where they want to operate their gambling business. When it comes to online gambling most owners will avoid such huge fee because of insecurity about the future of their business and its actually not needed since they can operate from the same website from any corner of this world so they they have to pay high for the same returns.
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KTChampions
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November 17, 2021, 07:14:48 PM |
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I try to study and see one source related to license fees and gambling taxes. As said below.https://gaming.nv.gov/index.aspx?page=94SPECIAL NOTICE
In addition to State administered gaming license fees and taxes, various other license fees and taxes may be required by the Federal Government and local governmental units throughout Nevada. Applicants for gaming licenses and existing gaming licensees should contact these other governmental units for information regarding the license fees and tax rates administered by them. Inquiries concerning reporting requirements should be directed to the Tax & License Division of the Nevada Gaming Control Board.
In the quote above, I conclude that the licensing fee for each type of gambling and the structure of the gambling site, the fee depends on the rules of the particular country in implementing it, different countries have different gambling license fees, there are the cheapest and up to the highest as you said, but it all depends on how many years they take, for example: 1-20 years, just multiply the year. As you said, probably among the casinos operating in Nebraska the most expensive licensing fees, I've also seen online casinos in the United States, not the middle part, the other part that caters to the casino, the license fee is around $30,000/5 year or $70,000/7 year, which is cheaply the license renewal fee is around $2800/year. Conclusion: the license fee in Nebraska if it's $1 million, in 20 years, that means/year the casinos there have to pay a license fee of around $50,000/year, not much different from other casinos in other parts of America. Yes, if you look over the years, the fees are really not much different from other places. But the difference between paying 50k every year and paying a one-time 1 million is quite large. In general, on the one hand, it can be good - this million will be used as a reserve fund and players will be protected from surprises. But on the other hand, such a large down payment contributes to the monopolization of the market as it drives out small players.
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madnessteat
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November 17, 2021, 07:43:53 PM |
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The gambling market in the US is slowly being taken over by the big companies, so I'm not surprised why the licensing fees are so high. In my opinion this is one of the ways to force small players to leave the gambling market by legal means. It is quite possible that this is a cooperative effort between people in power and big businessmen.
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Mahanton
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November 17, 2021, 07:51:36 PM |
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Casino business is only for the rich people so now they are taking it to next level of asking the complete fee upfront with more regulations but it all depends on the casino and where they want to operate their gambling business. When it comes to online gambling most owners will avoid such huge fee because of insecurity about the future of their business and its actually not needed since they can operate from the same website from any corner of this world so they they have to pay high for the same returns.
There are really differences between online and physical casinos which it isnt really that surprising that they do really differ or doesnt really have any license at all into those online casinos out there which is some of them are still unlicensed but we know the risk on dealing with those non regulated ones.Speaking with physical casinos then its a profitable business and i dont see for it to be that on high impact on raising up those fees yet they would able to cover it up without any problems even into those who are tending to start up then that wouldnt really be much of an amount.
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