Reason Why Casino Bankrupt?

[BlockEye]

Hello folks!

I am planning to establish my own gambling casino in the future and I need your help now on conducting a feasibility study for my project.
I want to know what are the factors that can affects/trigger to a casino to go on a sudden Bankruptcy. Personally, I don't have enough managing skills on handling business like this since it is too far to my profession. But I'm very eager to establish my own casino someday.

I will close this thread right after it hits 2 page or I gather much info whichever will occur first.

‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡

Thank in advance for helping!

[newIndia]

I want to know what are the factors that can affects/trigger to a casino to go on a sudden Bankruptcy.

House Edge.

[shanem]

It is usually not because of house edge that a casino goes bankrupt. The most likely reason is if many of the big whale gamblers managed to win from the casino and their bankroll is less than the earnings of the gamblers. They will have shortage of money to pay up. This news will spread and everyone will end up withdrawing from the casino. This is why a casino will close.

[BTCyuan$euro]

Huge mistake in a algorythm?

[Capradina]

From that I know everything you say is hard enough to never achieved, because the one thing that does need to be owned by someone in the casino is to understand and comprehend the function of the casino and also the device. If you want to build a casino but do not understand about the existing system in the casino then the bankruptcy will always be in the hands of you, unless you're working with people who have knowledge and experience in Casino
 

[FrueGreads]

Hello folks!

I am planning to establish my own gambling casino in the future and I need your help now on conducting a feasibility study for my project.
I want to know what are the factors that can affects/trigger to a casino to go on a sudden Bankruptcy. Personally, I don't have enough managing skills on handling business like this since it is too far to my profession. But I'm very eager to establish my own casino someday.

I will close this thread right after it hits 2 page or I gather much info whichever will occur first.

‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡‡

Thank in advance for helping!

Well casino's do well in the long term. They will make some profit if they keep having players betting on their games, and in the long term they will lose money, and the casino will get some profit. The problem I think, is that players can of course win in the short term, and if you don't have enough coins to support that, or if players just stop playing before you started having profit, then you will probably lose money.

[RealPhotoshoper]

It is usually not because of house edge that a casino goes bankrupt. The most likely reason is if many of the big whale gamblers managed to win from the casino and their bankroll is less than the earnings of the gamblers. They will have shortage of money to pay up. This news will spread and everyone will end up withdrawing from the casino. This is why a casino will close.

Makes sense enough , also there's a case someone who able to break the house edge.
In other words someone who have an access to the backdoor and do whatever they want include manipulating the outcome.
It happened to primedice , but they have a lot of fund backup luckily.

[Sniper44]

well i think the main reason that ANY business fails comes from the business owners not being experienced enough and sometimes not having enough luck to get their business going. i have seen so many shops open and never become successful while the same shops open in the same place and become super successful (the luck factor).

but also it is about the owners knowing what to offer, for example if you offer the same Dice site with the same script and everything you can not expect success.

also you shouldn't overlook the effect of advertising. people have to find out about your business and be constantly reminded about it's existence. otherwise the competitors take the field from you easily.

[joshy23]

High rollers, big whalers coming on to your casino betting big and winning then immediately withdraw it. Then going back and hit it big again. This is the only likely scenario that I think a casino will go bankrupt.

[dunfida]

High rollers, big whalers coming on to your casino betting big and winning then immediately withdraw it. Then going back and hit it big again. This is the only likely scenario that I think a casino will go bankrupt.

This is what on my mind too on which a casino goes bankrupt is when there are whale or players do win big amounts and then cash out then come back again.In short a hell of lucky players who do play on your site which would really make you bankrupt if you are a casino owner.Next on my mind when theres an error on breach on security which causes for all funds to be stolen which its a rare case somehow.

[emberbekas]

High rollers, big whalers coming on to your casino betting big and winning then immediately withdraw it. Then going back and hit it big again. This is the only likely scenario that I think a casino will go bankrupt.

Big whales for sure can make a gambling site go bankrupt quickly. And to anticipate it, a gambling site can apply 'max profit' policy to avoid such scenario to happen.

[Qartada]

High rollers, big whalers coming on to your casino betting big and winning then immediately withdraw it. Then going back and hit it big again. This is the only likely scenario that I think a casino will go bankrupt.

Big whales for sure can make a gambling site go bankrupt quickly. And to anticipate it, a gambling site can apply 'max profit' policy to avoid such scenario to happen.

Many casinos have a reasonable policy for how much you can earn relative to the bankroll.  Yolodice I think has a policy that you can't earn more than 0.5% on one bet relative to the bankroll.

With that kind of policy, bankruptcy is very unlikely as there aren't many costs of running a casino.  All you need to do is provide some sort of originality which can support users consistently using your service.

[Oilacris]

High rollers, big whalers coming on to your casino betting big and winning then immediately withdraw it. Then going back and hit it big again. This is the only likely scenario that I think a casino will go bankrupt.

Big whales for sure can make a gambling site go bankrupt quickly. And to anticipate it, a gambling site can apply 'max profit' policy to avoid such scenario to happen.

That is why there a max profit limitation or policy because if they wont limit then they would really got easily be bankrupt by those lucky players.Its very rare for a casino or gambling site to be bankrupt because houses are always profitable on the long run thats why gambling industry do still remain and even theres a lot more.

[piloder]

I think three things can trigger bankruptcy;

1. House edge : If you set house edge quite low to attract players, than you may end up losing all.
2. Security loop holes in your script : so its always better to have beta test before launching.
3. Worthless spending on advertising
4. If you just put all of funds in hot wallets.
5. Player's luck and if you haven't set any max win limit, lucky player can simply go away with all your bankroll.

[cjmoles]

I think three things can trigger bankruptcy;

1. House edge : If you set house edge quite low to attract players, than you may end up losing all.
2. Security loop holes in your script : so its always better to have beta test before launching.
3. Worthless spending on advertising
4. If you just put all of funds in hot wallets.
5. Player's luck and if you haven't set any max win limit, lucky player can simply go away with all your bankroll.

Yes....Money management problems are the most likely reasons a business goes into bankruptcy.  Number 5 above is a big one....pay attention to your bankroll management system....many sites here use variations of the Kelly Criterion....I wouldn't even start the venture without fully comprehending the Kelly.....

[Barbut]

I think three things can trigger bankruptcy;

1. House edge : If you set house edge quite low to attract players, than you may end up losing all.
2. Security loop holes in your script : so its always better to have beta test before launching.
3. Worthless spending on advertising
4. If you just put all of funds in hot wallets.
5. Player's luck and if you haven't set any max win limit, lucky player can simply go away with all your bankroll.

It's never worthless to spend money on advertising, I mean you are advertising casino, without good advertising strategy he can't count that people will come to his casino.
Maximum bet limit is what can hold back big whale's and high rollers.
Casino is making money on long run, you need to invest a lot of money in casino and to have money to invest until people start to come and spend money in your casino. That can be for month or a year, but you need to survive and to invest a lot in advertising until you start to make profit.

[peter0425]

I think three things can trigger bankruptcy;

1. House edge : If you set house edge quite low to attract players, than you may end up losing all.
2. Security loop holes in your script : so its always better to have beta test before launching.
3. Worthless spending on advertising
4. If you just put all of funds in hot wallets.
5. Player's luck and if you haven't set any max win limit, lucky player can simply go away with all your bankroll.

It's never worthless to spend money on advertising, I mean you are advertising casino, without good advertising strategy he can't count that people will come to his casino.
Maximum bet limit is what can hold back big whale's and high rollers.
Casino is making money on long run, you need to invest a lot of money in casino and to have money to invest until people start to come and spend money in your casino. That can be for month or a year, but you need to survive and to invest a lot in advertising until you start to make profit.

And besides, spending on advertisement will only constitute only a small portion of your bankroll so this is out of the question. But I agree with the rest of the items. So its will be up to the gambling operator how to mitigate risks and to make sure that it has enough revenue expenses.

[KuromaYoichi]

You can go on a sudden bankruptcy if you don't set the max bet/win limit, if some high roller come and somehow win, your casino's bankroll will take a huge hit. Offering lower house edge can be both advantege and disadvantage as it will attract more player but can lose many of your bankroll. The last is the security, got hacked and it's over.

[olushakes]

From the way I see it, a site can go bankrupt if the fundamental foundation is not taken care of. Bankruptcy does not necessarily means money running out although its a fundamental factor but the angle I am looking at it is from the legal point of view where a site does not even acquire the required licences to run a casino and unfortunately, the authorities look into that direction, the amount that will be spent on lawyers in other to avoid going to jail, can bring the site to its knees.

[ralle14]

These are the only ways I know a casino could get bankrupt. First if they found a way to get the server seed. Second, if the casino has bad bankroll management the profits could easily turn around.

I also found an old thread that talks about the same topic. Hope this helps too.