Can Casinos Go Bankrupt Because of Player Wins?

[virasog]

Though I'm not entirely sure, I don't think that's how things work around there, casinos that are successful and have gained some name and fame have enough funds to both cover the security expenses and to pay their players, and they have their business models designed in a way that a player cannot technically win more than they can afford to pay them, and the maximum that they pay a player for the biggest win is not even close to 10% of their bankroll.

So the idea that a casino might go bankrupt only because a player wins big is not true unless it is a casino that has been started with a small bankroll with no proper business plans and everything, such a casino might go bankrupt if they allow their players to hit big jackpots and then not be able to pay up.

It will only happen to casinos that did not have large funds when launching their casino, and it will only be a short time before the casino can get their income. Before the casino was launched, the owner must have thought about everything carefully, including how much money they had to provide to cover all the costs that would appear in the following month, including if a lucky gambler won a lot of money. And if the casino is really serious about what it does, it's sure to pay out the gambler's winnings in no time. So it is unlikely that the casino will go bankrupt because the number of gamblers who can win a lot of money will also not be many, and on average many gamblers will lose their money in gambling.

Even the new casino should be carefully setup the business and they should have enough funds to cover the wins of the gamblers. They should take this into consideration and put certain money aside before starting a new casino. If they do not do this calculation then there is no use spending money and opening a casino.

If they go bankrupt because of this reason, this will just end their business, and if they delay or halt the withdrawals because of low funds, that will put a bad impression on the gamblers, and it will again put a dent in the success of the casino.

[QueenVera]

Is it possible for a casino to go bankrupt because a player gets a very big win?

I think maybe that's hard to happen if we look at casinos that are already big and well known. But suppose there is a new casino, and there are some players who are very good at playing, so they can win continuously, can the casino go bankrupt? or do they already have an algorithm or a way so players can't keep winning?

Uhmm I think it's not possible, not even for a newly opened casino because the chances are very low and even if happens it won't take when long before they recover their lose, I mean we all know that  gambling has more loss than profit and the casino always stand a better chance of winning compared to the gamblers, you don't expect a casino site to start their business at let say about 100million in any local currency where it located and keep their maximum payout at same amount no, the maximum payout would be let's say about 20million or 50 then their would also be reserve incase they suffer multiple losses.
 Anyways why I think it wouldn't take long for an online casino that go bankrupt is because most casinos have got insurance and could file for bankruptcy, however it's very rare and not common with casinos because they stand a better chance of winning compared to their customers, in gambling 100% winning is not guaranteed, no matter your strategies or how skillful you're,  majority loss mostly and win sometimes making it more profitable for the gambling sites

[panjul07]

Uhmm I think it's not possible, not even for a newly opened casino because the chances are very low and even if happens it won't take when long before they recover their lose,

In fact there were some cases which proves that you are wrong because there were some bankrupted casinos but of course the reason is not only because of player's big win.
A new casino with less experienced owner might be bankrupted because of wrong management for the bankroll.
Although the chance for casinos to get bankrupt due to big wins by player is so small but chance is still a chance that may happen.
To avoid this, casino need to have proper bankroll management which is the most crucial part of the casino.

[Cookdata]

Though I'm not entirely sure, I don't think that's how things work around there, casinos that are successful and have gained some name and fame have enough funds to both cover the security expenses and to pay their players, and they have their business models designed in a way that a player cannot technically win more than they can afford to pay them, and the maximum that they pay a player for the biggest win is not even close to 10% of their bankroll.

So the idea that a casino might go bankrupt only because a player wins big is not true unless it is a casino that has been started with a small bankroll with no proper business plans and everything, such a casino might go bankrupt if they allow their players to hit big jackpots and then not be able to pay up.

It will only happen to casinos that did not have large funds when launching their casino, and it will only be a short time before the casino can get their income. Before the casino was launched, the owner must have thought about everything carefully, including how much money they had to provide to cover all the costs that would appear in the following month, including if a lucky gambler won a lot of money. And if the casino is really serious about what it does, it's sure to pay out the gambler's winnings in no time. So it is unlikely that the casino will go bankrupt because the number of gamblers who can win a lot of money will also not be many, and on average many gamblers will lose their money in gambling.

That reminds me of one casino that run off with user's money after it failed to pay up the users because the bonus they gave was much, and they didn't expect to see many users turn up, and they just disappear. Running a casino is a big business that requires thousands and millions of money because when a reputation is created and users' trust is gained, they can deposit large amounts of money, and doing that means they want to wager them in return to win back something, in the process they could lose everything but there are some that can win the jackpot, I think Casinos sometimes even do promotional jackpots event just rake in money when in reality they don't have money to pay the players if the opposite happens.

[maydna]

~snip~

Even the new casino should be carefully setup the business and they should have enough funds to cover the wins of the gamblers. They should take this into consideration and put certain money aside before starting a new casino. If they do not do this calculation then there is no use spending money and opening a casino.

If they go bankrupt because of this reason, this will just end their business, and if they delay or halt the withdrawals because of low funds, that will put a bad impression on the gamblers, and it will again put a dent in the success of the casino.

The most important thing for a new casino is that the casino owner must have more than enough funds to run his casino because starting a business requires funds to promote. And since the owner launched the casino, he must know that there will be winners emerging in his casino, and that is why he must have more funds to pay out his winnings to the winning gamblers. If the owner can have large funds and pay the winners, the casino will slowly get a good reputation among other casinos, and more gamblers will come and play gambling at the casino.

But if it turns out that the number of winners is more than he imagined and he has to spend more money, maybe it can bankrupt the casino. A casino owner must reckon with this, but in the long term, he can definitely make a very big profit.

~snip~

That reminds me of one casino that run off with user's money after it failed to pay up the users because the bonus they gave was much, and they didn't expect to see many users turn up, and they just disappear. Running a casino is a big business that requires thousands and millions of money because when a reputation is created and users' trust is gained, they can deposit large amounts of money, and doing that means they want to wager them in return to win back something, in the process they could lose everything but there are some that can win the jackpot, I think Casinos sometimes even do promotional jackpots event just rake in money when in reality they don't have money to pay the players if the opposite happens.

It can happen in any business where the owner runs off with all the users' money and even in a reputable casino. But we believe a trusted casino will not do it because its reputation is at stake in this case, so the casino tries to pay out every winning money from its gamblers. Running a casino is not easy, but with the hard work of everyone on the casino team, you can give maximum results and make the casino one of the most trusted casinos. You can even grow even bigger in the future.

[Slow death]

something interesting that I've noticed lately is that probably many new casinos when they appear here on the forum they don't have a very big bankroll, so what do they probably do ( I'm not absolutely sure they do this, but I have a strong suspicion that they do this ) and create a casino and come and advertise here on the forum and place low limits on bets, place high withdrawal amounts and high withdrawal requirements such as 5x of the deposited amount, with all these conditions, people for example who place 100$ in the casino they will hardly be able to play to the point of winning or losing in the amount of 500$ and when withdrawing they will see that the withdrawal value is 50$

obviously if there are 100 people who deposited $100 in the casino with these conditions, at most less than 10 people will be able to withdraw money from the casino and little by little the casino will have a large bankroll, and that is why many new casinos cannot run a signature campaign for a long time and others run for a week or two which is to get some customers who will lose all the money in the casino and with that the casino will have higher bankroll money and will continue to do less cost advertising to get more customers , in extreme cases when the new casino realizes that it is not getting many new customers but it has already made some money so they disappear with all the money they have made

but with the hard work of everyone on the casino team, you can give maximum results and make the casino one of the most trusted casinos. You can even grow even bigger in the future.

the problem most of the times lies precisely in the part of having a team, because having a team entails the cost of salary, the casino employees need to receive salary and in the first month the casino will hardly be able to have many customers and profits to the point of having money to pay the wages of casino employees, which is why many casinos take a long time to respond to support tickets and resolve customer issues because they have too few employees

[komisariatku]

In fact there were some cases which proves that you are wrong because there were some bankrupted casinos but of course the reason is not only because of player's big win.
A new casino with less experienced owner might be bankrupted because of wrong management for the bankroll.
Although the chance for casinos to get bankrupt due to big wins by player is so small but chance is still a chance that may happen.
To avoid this, casino need to have proper bankroll management which is the most crucial part of the casino.

I've read a lot of comments on this thread. It is unlikely that the casino will go bankrupt because many gamblers win the jackpot. The chances are even greater that the casino will go bankrupt when there are no gamblers. I completely agree with this, I think casinos are just like any other company, and all companies go bankrupt when they have no customers.

But a new casino that has bad finances can also go bankrupt, but it can go bankrupt because its operating expenses are greater than the sum of its revenues. In my opinion, the casino business requires large promotional costs to get gamblers to want to play there. Especially if it's an online gambling site, there aren't many choices of advertising platforms that allow gambling ads. So it costs a lot for advertising. When they have spent a lot of money on advertising, but their customers are still small, they are likely to go bankrupt

[pawanjain]

According to me, if a casino is hosting games or lotteries or anything and are keeping a reward which is near to or higher than their bankroll then it's their foolishness.
In that case, they would obviously go bankrupt. But most casinos don't do this because they keep it in mind that the rewards should always be lower than bankroll.
I think they might also have algorithms where they might be tracking total user winnings and comparing it with bankroll and suspending operations if both are at par.

[uneng]

I think they might also have algorithms where they might be tracking total user winnings and comparing it with bankroll and suspending operations if both are at par.

That would be almost so concerning like going bankrupt, because if losses and winnings are at par, it means the casino would have to stop their operations for an undetermined period of time, what will prevent them from profiting from new players' bets and recovering the loss they had to big winners. In this situation I think their only alternative would be to gather more funds to add to the house's bankroll and resume operations, possibly borrowing from players themselves through bankroll investment modality, otherwise they would have to close the doors, since it's too risky for the casino to work with a small bankroll.

[Mr. Magkaisa]

Is it possible for a casino to go bankrupt because a player gets a very big win?

I think maybe that's hard to happen if we look at casinos that are already big and well known. But suppose there is a new casino, and there are some players who are very good at playing, so they can win continuously, can the casino go bankrupt? or do they already have an algorithm or a way so players can't keep winning?

     -     The only time I've ever seen a gambler lose the casino or house edge is actually in the movies. but in reality I have never heard anything like that.

Because it often happens that most gamblers lose in casino, that is why most casinos make a lot of money and only a few win. this is all I know in reality. And always repeat and happen again. Moreover, we also know that casino is very hard to defeat unless if you are a great cheater in gambling.

[madnessteat]

According to me, if a casino is hosting games or lotteries or anything and are keeping a reward which is near to or higher than their bankroll then it's their foolishness.
In that case, they would obviously go bankrupt. But most casinos don't do this because they keep it in mind that the rewards should always be lower than bankroll.
I think they might also have algorithms where they might be tracking total user winnings and comparing it with bankroll and suspending operations if both are at par.

Such things are most likely to happen due to an error in the winnings distribution algorithm, but casino owners have learned to solve such problems as well. As far as I know, there have been such cases that a gambler won a big win, but the casino owner proved in court that the machine for which the client was playing was defective and this led to a mistake. I do not know how honest was both the casino owner and the judge, but as we all know, money solves many problems. 

[noormcs5]

Is it possible for a casino to go bankrupt because a player gets a very big win?

I think maybe that's hard to happen if we look at casinos that are already big and well known. But suppose there is a new casino, and there are some players who are very good at playing, so they can win continuously, can the casino go bankrupt? or do they already have an algorithm or a way so players can't keep winning?

     -     The only time I've ever seen a gambler lose the casino or house edge is actually in the movies. but in reality I have never heard anything like that.

Because it often happens that most gamblers lose in casino, that is why most casinos make a lot of money and only a few win. this is all I know in reality. And always repeat and happen again. Moreover, we also know that casino is very hard to defeat unless if you are a great cheater in gambling.

We see a lot of things in movies that are far from reality. We usually see gamblers making a lot of money gambling while in reality, it is totally the opposite. We see that gamblers make easy money but in reality, it is very hard to make money from gambling. Similarly, sometimes we see the downfall of the gambling casino, but in reality, that does not happen.

Do we have real world examples where a gambling house loses its business and becomes bankrupt or something? I haven't seen this type of scenario not even with a new casino. Yeah I do know the gamblers who have lost everything and gone bankrupt because of gambling losses.

[rahmad2nd]

If a gambler wins a lot of money or a big amount of money at once some of the gambler sites may held his withdraw or block his account or start investigating in order to not to pay that particular person. They may find excuses to not to pay him but the good sites will never do such cheap things.

Coming to the point whether the casino can become bankrupt I think only the new casinos can have this problem or if those casino being run by the inexperienced persons.

To build a casino requires a sizable fee, even though the casino is an online casino. Usually, business people engaged in this industry will first calculate how much money they need. that means, to build a casino requires sound financial logistics. or, looking for some investors to build the casino. So, it's not as simple as we imagine if building an online casino is easy. at least, they have prepared including the financial logistics.

So, referring to what you said, if the casino is a casino that has a reputation that can be trusted and its credibility can be accounted for. the casino will not make it difficult for its customers, let alone to withdraw the winning money that wins to be theirs. unless it is suspected of cheating. or, must meet regulatory standards in case of large withdrawals. An established casino will not go bankrupt because there are users who win big wins. After all, each casino will limit the betting of its users according to the limits they provide. so, it is unlikely that the casino will go bankrupt because one of its users wins the jackpot. except, that the casino is an illegal casino that doesn't have a license or it could be that the casino is run by people who are not as competent as you say.

[Blitzboy]

If a gambler wins a lot of money or a big amount of money at once some of the gambler sites may held his withdraw or block his account or start investigating in order to not to pay that particular person. They may find excuses to not to pay him but the good sites will never do such cheap things.

Coming to the point whether the casino can become bankrupt I think only the new casinos can have this problem or if those casino being run by the inexperienced persons.

To build a casino requires a sizable fee, even though the casino is an online casino. Usually, business people engaged in this industry will first calculate how much money they need. that means, to build a casino requires sound financial logistics. or, looking for some investors to build the casino. So, it's not as simple as we imagine if building an online casino is easy. at least, they have prepared including the financial logistics.

So, referring to what you said, if the casino is a casino that has a reputation that can be trusted and its credibility can be accounted for. the casino will not make it difficult for its customers, let alone to withdraw the winning money that wins to be theirs. unless it is suspected of cheating. or, must meet regulatory standards in case of large withdrawals. An established casino will not go bankrupt because there are users who win big wins. After all, each casino will limit the betting of its users according to the limits they provide. so, it is unlikely that the casino will go bankrupt because one of its users wins the jackpot. except, that the casino is an illegal casino that doesn't have a license or it could be that the casino is run by people who are not as competent as you say.

Online or offline, opening a casino is difficult. No doubt, it's an expensive operation. It's not only financial; there's the legal and regulatory circus. Now, trust. A good casino wouldn't make withdrawals difficult. A well-run casino knows that winners are its best advertisers. What's better publicity than a customer winning big?

You're right again about jackpots bankrupting casinos. Casinos have bankroll protection. Casinos won't let gamblers wager without limits; that's a certain way to go bankrupt. A respectable casino has nothing to worry about. Everyone should be aware of fly-by-night operations.

[Casdinyard]

According to me, if a casino is hosting games or lotteries or anything and are keeping a reward which is near to or higher than their bankroll then it's their foolishness.
In that case, they would obviously go bankrupt. But most casinos don't do this because they keep it in mind that the rewards should always be lower than bankroll.
I think they might also have algorithms where they might be tracking total user winnings and comparing it with bankroll and suspending operations if both are at par.

Exactly. No casino in their right minds would do this cause it doesn't even guarantee user benefits anyway. For the most part most casinos go few degrees higher in their bankroll so that rewards can be provided regardless of how big they are, and with the deposits in mind they also take that into account along with the losses that each players incur.

The only realistic reason a casino could go bankrupt is if every player in their site suddenly bagged multiple wins in a row. This means that they would have to pay every single player and with most reputable casinos with millions of players everywhere this is a surefire way for them to go bankrupt, although of course due to probability and house edge we know this is not going to happen within our lifetimes lol.

[Vaskiy]

The percentage of casinos that have gone into bankruptcy is very low. This too could've happened due to some error or some sort of hacks from the gamblers. Very few platforms ended with bankruptcy due to the gamblers learning the scripts used and taking advantage of it to win big. Gambling House always have its edge, which means amidst the win/loss by the gambler and the house there'll be certain percentage that'll be accumulated as profit. These days we can't see bankruptcy of gambling platforms. Some have ended their services for different reasons and not of bankruptcy.

[maydna]

~snip~

the problem most of the times lies precisely in the part of having a team, because having a team entails the cost of salary, the casino employees need to receive salary and in the first month the casino will hardly be able to have many customers and profits to the point of having money to pay the wages of casino employees, which is why many casinos take a long time to respond to support tickets and resolve customer issues because they have too few employees

If the casino owner has prepared a certain amount of money, it will not be difficult to pay for the following month's expenses and can place the money for each fee, including promotion costs. But it could be that the casino owner doesn't have many employees at first and as his business grows, the owner then recruits more employees to work at his casino because of course, there will be a surge in users coming to their site especially if the casino has made various kinds of attractive promotions. It all depends on how the owner manages his business; I think all owners already know that.

[TopTort777]

From the posts here it sounds that casino can go bankrupt if only gambler wins jackpot or have huge multiple wins in a row. It sounds that opening and having a casino is easy. But I remember Bitgame casino. It has some budget on promotion, I havent noticed records of huge wins, they never got hacked or abused. It seems that casino would run for a long time, collect house edge and prosper. However they have closed.

[retreat]

-snip-
Such things are most likely to happen due to an error in the winnings distribution algorithm, but casino owners have learned to solve such problems as well. As far as I know, there have been such cases that a gambler won a big win, but the casino owner proved in court that the machine for which the client was playing was defective and this led to a mistake. I do not know how honest was both the casino owner and the judge, but as we all know, money solves many problems. 

I know that the casino platform is unlikely to benefit their players because of business matters, but to take the players to court just because they won big? is that not outrageous? have they not thought about their reputation by taking winning players to court just because they disagree with the outcome of their game? I am quite surprised with a casino platform like this, only because they don't want to lose they are willing to go to court and bribe people there.

[klidex]

-snip-
Such things are most likely to happen due to an error in the winnings distribution algorithm, but casino owners have learned to solve such problems as well. As far as I know, there have been such cases that a gambler won a big win, but the casino owner proved in court that the machine for which the client was playing was defective and this led to a mistake. I do not know how honest was both the casino owner and the judge, but as we all know, money solves many problems. 

I know that the casino platform is unlikely to benefit their players because of business matters, but to take the players to court just because they won big? is that not outrageous? have they not thought about their reputation by taking winning players to court just because they disagree with the outcome of their game? I am quite surprised with a casino platform like this, only because they don't want to lose they are willing to go to court and bribe people there.

It depends on the problem that is experienced by both parties between the casino and the gambler if it is about a large illegal win and the gambler is suspected because of cheating this has become a natural problem because in the past there were often problems like this involving the court to resolve the problem and of course the casino will always win.
I am not saying casino always bribe judges to be able to win in court, but sometimes there are gambler who deliberately cheat to get big wins like the story of someone you replied to.
With this problem, we can know a lot of thing, that no matter how strong a gambler is, he cannot win against a casino because casinos have big money and are able to change anyone fate for the better or can change problems for the better.
I think you may also have read about thread related to this issue and once you have read through all the issues and can draw conclusions for yourself I am sure you won't be surprised by something like this