Quote:
Originally Posted by Popetman
I would suggest that card rooms do make 'good' money
Just in terms of profit per sq ft - it's 'nothing' compared to the casino's table games
I did look into buying the International Club [for about 24 hours thought I would] - and the 1/1 tables there certainly made enough money. Not sure if NDA's still apply.
The tourney's are the loss leaders. But cash games turn a lovely profit.
As anyone who has run a private game will confirm.
I'm sure if any of these casino's had more people then they could fit into their table gaming area - they would close the poker rooms. But they always seem to have some of the table games not 'open'.
So I would say, poker rooms make money. Good money. But nowhere near as much as table games.
I guess there is less variance for the casino on poker. As some whale can only get lucky and win big against the casino in the table game area
most of the private clubs are operating illegal or at least bend the rules hence the big ones are now shut even after lengthy legal battles (gutshot, int, big bluff) PLUS, they don't have to pay the 50% tax on income from poker/gambling as they don't have a proper casino/gambling license (we all know these venues are poker clubs, but pretend to be private clubs offering other activities to stay semi legal)
the vic and empire both run there card room as a seperate venue/licence purely for more slot machines, as the rules/licensing limits the amount of slots a venue can have. (we all know they are the same, but technically they are different and thus have more slots than they normally would have)
and as you say, tournaments lose money, alot of money, but if they can convert even a small % of the players who bust the tournament to the cash tables or pit games they make there money back very quickly, but as a card room manager discussed with me, there are lots of core tournament grinders who play just the comps and then leave, without spending/risking money, and the ones that do its very hard for the casino to track there gambling so its hard to know how good the poker rooms are at generating people to play on the pit games
in answer to cash games, a 1/2 with decent action can make £150+ an hour EASILY, more in a fast paced game with a decent dealer, thats 5% capped at £10. so all these private venues/home games with rake thats usually that or higher are making chunks, with much less running costs, even 1 decent 1/2 game could make £1000 a night for the owner, so you do the maths
as for profit of a card room, as a rough guide, if aspers is generating £70k in lloyalty drops (£1 for every hand over £20 in the pot) thats 70,000 hands over £20, now at 1/1, which is 95% of there games, thats a minimum of £140,000 or rake assuming every pot was £20, but we know lots of pots are over £20, reaching the £5 a hand cap! so a realistic indication from aspers room is they are raking £250,000+ a month (ok it might be a bit less but i think thats pretty accurate) but unless you know the running costs and rent etc of aspers its not easy to calculate profit, but who really cares?
over the last few years, i would say london poker has picked up since the so called recession, but more so in the low stakes games, which are busier than ever imo