Business face incredible taxes and expenses to operate, to the point you almost have to laugh....
FICA
Unemployment ins tax
Workman comp
Liability insurance
Tenant insurance
Property insurance
Liquor insurance
Then there are federal taxes on the business

...... Still have not paid the rent, utilities, help, buildout .....and other expenses....

All expenses of business..... This one gets 45% shaved off the top right.... Pretty crazy

And a reason the place has to be operated properly.....

Expense of non start meeting....6 racks reds

Aren't many of these considered operating expenses tho ? (the answer may very well be no.....I don't know)

I realize the 45% off the top is crazy, but it's not that different than a highly paid sales rep in the close to 50% tax bracket. Still looking at $millions in profit to run a poker room.

I can think of worse ways to make a living

My assumption is that the 1st 3 items are (since they're required by law as an employer) but the others aren't. But I'm not a business owner.

I can cut this up like this:

A non charity room casino (most times) prints money, a highly regulated charity poker room, if well run, can be a profitable business, but is more a love of the game and love being around the game and really helping people out thru the charity link. That's where I'm at. Build and run the best room, make tons for charity. Really excited for both parts.

Dude, we're rooting for you...but don't insult us by telling us there's not a substantial profit here for you.

Without getting political, My point is that all business owners, especially small ones, are faced with steep taxes, expenses, and gov mandated funds... This business gets 45% of the revenue clipped off before anything is paid, and is further at the whim of the lottery and politicians with zero protection or assurance they are not going to change the rules and crush you.

You have to love poker to venture and make a substantial investment here in NH.....

I thought Operational Expenses were deducted before paying out to the Charity and Tax Man.

That License is more valuable than Gold, as far as personal income potential

based on bigworms estimate of Rockingham for example;

"35% of (Rake - Operating Expenses) = $2mil to chairity"

So that would put revenue around $6mil - $2mil to charity = about $4mil profit ?!

So you pay a tax on $4 mil proofit.

Still a lot left for the owner. At 50% tax rate that leaves $2 mil for the year, for the owner.....or about 33% of revenue by a rough estimate.

Even with expenses deducted after 35% of (Rake-Operating Expenses), you're STILL talking about SERIOUS INCOME/PROFIT for hosting poker.

...its going to be a fun way to earn a living and do great things for charity...

but, your way over simplifying the entire concept...but to clarify:

of all gaming dollars raked: before ANY expenses, emphasis on ANY,

35% is deducted and goes to charity
10% is deducted and goes to the state lottery (formerly gaming comm)

I'm pretty sure I outlined this many posts ago..... but here's another gold nugget:

Table (carnival) games is where the gov does it even better
....... for using round numbers..... say its a Tuesday, and the second of 10 days for a particular charity, and your poker rake has netted and even sum of $ 1,500. At that point, the room owes out both 35% and 10% leaving 55% for the room. BUT, the table games, roulette esp, made a huge run and you LOST $ 4,000 (and I know personally of $ 9,000 room loss nights).

........... this is 100% the house loss, the charity and state can only win, none of the $ 1500 rake earnings is offset against the table game loss.....

..hence why the rooms have so few table games.....

WE are planning on being the premier POKER CHARITY ROOM, no more, no less. We will be Borgata North, except better TV and better customer care for our players. You can take that to the bank, I am all in for the Players & Charities....

What are some of The Charities that poker money goes to in NH ?

Are they local or national ? (or both)

Is there a list someplace of where the money goes ?

???? I thought Table games where way more profitable than Poker Rake. The house NEVER loses over any real sample size.....or so I thought.

so, question for Puck.

Using the Rockingham #'s tossed around earlier......if they did $6million in revenue, paid out $2million to charity leaving $4million left over for taxes & other expenses.......

What would you guess the owner profit was ?

I am thinking AT LEAST $1 million.

Am I way off base ?

Puck - are you saying that you have to settle with the charity on a daily basis? If you have the charity for 10 days, and on day 1 table games made 5000 and on day 2 lost 4000, at this point do you owe the charity 1750 (35% of 5000 + 35% of 0 since losses don't count) or 350 (35% of the 1000 sum)?

It has to be a NH charity......... and the list is a <somehow> secret ? if you watch the video telecast of the hearing, you will see that I outline the process as well as list the charities that have submitted forms

give that man a Seegar..... the books are settled and closed EVERY DAY. Wins are settled and paid everyday.... Table games losses are absorbed by the house and closed out each day...

That's possibly true, but consider that the owner is typically not just 1 guy but a group of investors with different equity shares. Once you divide that up among everyone it's not like he'll be taking a dive into his money bin (a la Scrooge McDuck).

ahahahahhhhaaaaaaa...... examine the games in NH. LIMIT on wager is $4.00 per hand, hence BJ21, and the other games....are very limited to wins and losses. Some of the other games, while $ 4 is the max bet, pay out substantial odds on hands........then there is roulette, where $4 max bet per player is actually....... box a number X $4 is considered 9 potential single bets of $ 4 each from a single player..... you can get bigs runs, and is why you heard stories about rooms removing the wheel mid game

That changes things considerably. Thanks.

I'm off to play poker.... so will be off line here til tomm..... flipping a coin: heads Foxwoods, tails.... sunflower field pics and Seabrook with the wife....

Happy wife = Happy life

Apologize I derailed the thread with rake-expenses. I was wrong.

I pulled it from the first link on Google. Ref http://newhampshire.casinocity.com/charitable-gaming/

They said 35% of profit. Huge difference between profit and gross.

Also of note the 2mil from rockingham was in a year when the laws changed to allow a more traditional no-limit format in an unsaturated market. The 2014 numbers weren't even close to this. Rockingham also employed about 45 people. Add in cost of building, buildout and equipment and all the other taxes and expenses it would be a great success to break even on this venture the first year. Add on the risk of losing in table games increased competition this does not seem like a get rich guarantee. NH keeps changing the rules, and increased revenues will only get their attention more. Furthermore it only takes one bad employee to completely ruin this type of business. Hardly a guaranteed get rich endeavor. Love of the game and charities has to be number one to go down this road.

Borgata North sounds good though!

This was premature. I did not anticipate that this thread would be about people wanting to count your money.It's disgusting, I can't even read it.

hardly think it's become that.....a couple of us were/are curious about how much rooms like this make, where the charity money goes to etc....etc....

asked some questions of someone in the know, (using Rockinghams past #'s) and he was kind enough to answer.....

i wish him the best of luck, and hope to see quality rooms opening in New England.

have a passion for Poker Myself, and just asking questions to satisfy my curiosity is all.....

gl Mr. Puck !

And the myth that the house never can lose in spreading table games gets debunked every now and then........
http://www.sacbee.com/news/local/article3546699.html

That shortfall didn't necessarily come from the house losing at table games. It is far more likely that it was embezzled.