Quote:
Originally Posted by MikeStarr
I understand that the poker room doesnt make as much money as table games, but if you have a 100,000 square foot building (just an example) and you put in enough table games and slots to fill the building but you dont have enough customers to play all of those table games and slots, you have two choices.
1) Have 80,000 sqft of space making $5 per hour per sqft and 20,000 sqft of space making $0 per hr per sqft (because those games are always empty
2) Put in a poker room and the dead 20,000 sqft of space making $2 hr per sq ft.
Which do you think results in more total money? If I have a store that sells skate boards and T-shirts and the T-shirts make good money but not as much money as the skate boards, Im still going to manage the T-shirt area correctly. Its still profit.
If THR management doesnt care at all about the poker room then they are idiots who need to be replaced by the board of directors. Its pretty simple.
If total casino profits drop after calculating in the extra profits from the parking fees, they will do away with the parking fees or the board will do away with them. I visited Tampa recently and enjoyed playing at Derbly and Silks a lot more than THR anyway. I think you guys should all leave THR.
(dollar amounts are just examples. I have no idea how much per sqft they make)
this isn't a new topic. many many threads and posts all over 2+2 using actual numbers from revenue sheets.
your idea is correct in the big picture... the skateboard shop still makes some money from tshirts... and sometimes skateboard shoppers want to go where they can also buy tshirts (or bring tshirt buying friends)... so they provide it. the hard rock does this by providing poker. as do many casinos.
the error you're making is how much value you're assigning each. it's not small difference. it's a big difference. poker takes up a lot more space than slots and make a lot less. an active poker table will average 100 - 300 in rake per hour. and there is a need for a lot more staff than a slot machine.. or even table game.
if you owned a skateboard shop that made $100 profit on skateboards and it comprised 99% of your sales (and the skateboards didn't require a salesman, and 99% of your customers only wanted skateboards) and you made $1 profit on tshirts (and each tshirt required a salesman, and most tshirt customers were constantly complaining)... how much energy and effort (and stress) would you put into your tshirt division?
i'm not saying they shouldn't do a job well.. but i can see the motivation to sweep it aside easily.