How Much Does It Cost to Own a Land-Based Casino?

“You have to spend money to make money” applies to the lucrative yet expensive casino industry. Although raking up popularity, it takes a considerable investment when starting up.

Small physical casinos cost up to $5 million, and medium-sized casinos cost up to $20 million. Casino earnings depend on the location, size, games offered, and reputation.

Highlights of the Article

• Before you build a casino, you must have at least $500,000 and up to $4 billion in your bank.
• When you have the right amount, kickstart your casino by fulfilling all the requirements, such as licensing, gaming supplies, staffing, and more.
• The casino’s construction and running cost varies from place to place and the changing market price.
• The renovation cost of a bought-out casino is as expensive as its acquisition cost.

Here’s a quick look at the industry’s daily profit:

• Large Las Vegas Strip casinos: $1 million to $10 million
• Smaller regional casinos: $50,000 to $500,000

Knowing the startup and operating costs is crucial to own one of these venues. Let’s dive in!

The Cost of Building and Operating a Land-Based Casino: A Breakdown

With millions of dollars needed to build and run a retail casino, crime syndicates were key to financing casinos before. Today, they would hope for MGM or Caesar’s Entertainment’s rescue.

Some top-rated casinos in America have spent more on location, contractors, games, amenities, customer service, technology, marketing, and security before opening.

Here is the estimated startup cost of the following casinos:

• Wynn Las Vegas: $2.7 billion
• The Palazzo: $1.9 billion
• MGM Grand: $1 billion
• Red Rock Casino: $925 million
• Paris Las Vegas: $785 million

In land-based casinos, the costs depend on how big or small the owner prefers. Let’s look more into the cost factors of land-based casinos to help you get started.

Finding the Right Location

One of the biggest expenses is where you’ll build your casino. It can be challenging due to the limited places where retail casinos are legal and will attract patrons.

The average US retail space costs $18.09/sq ft. With the limited space, the land costs more in and around big cities than in most rural areas.

Below are the Top 10 cities with the most expensive land to buy:

Las Vegas is strategic for casinos, with three major interstates and more highways intersecting. It is accessible by car, plane, or train. Some of the best casinos in Sin City include:

• Bellagio
• Aria
• Wynn

When you build in Las Vegas or Atlantic City, where the market is competitive, the more money invested, the more casino will stand out.

Buying and renovating an older casino doesn’t save you more money. MGM acquires other casinos for billions and spends the same on renovations.

Some of the oldest casinos on the Strip that have been renovated several times are:

• Flamingo: Built in 1946 at $6 million
• Tropicana: Built in 1957 at $15 million
• Caesar’s Palace: Built in 1966 at $24 million

Fun Fact

Las Vegas casinos opened when thousands of Hoover Dam workers came to the city in the 1930s. Learn more about the history of the Las Vegas Strip!

Let’s look closely at the construction cost for hotels, bars, restaurants, and entertainment venues that keep the fun going.

Getting Started with the Construction Costs

The world’s most expensive casino spent $4 billion on construction, while a more average casino costs $950 million.

Most Las Vegas casinos have thousands of hotel rooms, compared to American hotels averaging 115. Few rooms incur less cost, which will also limit your potential customers.

For 3,000 slot machines and 50 table games, you must have at least $2.2 billion for the facility.

Here is the cost breakdown:

• $2 billion for a decent hotel in Las Vegas
• $770,675 for licensing fees
• $125 million for gaming supplies
• $100 million for staffing+

Quick Tip

If a land-based casino is out of your range, an online casino might be for you.

You need at least $1.9 million to get your site up and running. It might be huge, but the operating costs are much lower.

The largest and most successful casinos have a wide range of games selection and a massive floor plan. WinStar World Casino in Thackerville, OK has:

• 8,000 slot machines
• 55 poker tables
• 400,000 sq ft floor space

While labor costs contributed to the increased construction cost, material costs are a greater challenge to most businesses.

97% of heavy (lumber, concrete, and steel) and 92% of light (insulation, fit-out material, and glass) industry companies expect inflation.

Manufacturers agreed that prices grew higher from 2020-2021, wherein:

• Light materials: from 61% to 82%
• Heavy materials: from 6% to 77%

Most brick-and-mortar casinos also have hotels, restaurants, entertainment centers, and stores, which add cost. Let’s find out below!

Hotel

(RS Means and Gardian)

The most successful casinos are attached to big hotels, providing guests with bars, entertainment, and security. This encourages them to spend more in the casino.

However, adding a hotel to your casino is an additional cost. Here is the average value of some casino hotels:

• US hotel: $22 million
• WinStar and Beau Rivage: millions of dollars
• A 4-to-7-story hotel: $24 million

On-site entertainment and dining venues enhance the hotel and casino experience. The farther from Vegas and Atlantic City, the less extravagant the casinos tend to become.

Bar and Restaurant

(casino.org, lightspeed)

The world’s top casinos, where luxury hotels reside, keep patrons by housing some of the finest restaurants serving international cuisines.

Casino restaurants strive to offer an upscale dining experience for gamblers to enjoy between rounds of blackjack or slots.

Side Note

If you wish to try out your luck in slots, check our guide on finding the best slot machine odds to improve your winning chances.

Aside from offering a five-course meal, most casinos should also have full bars with a wide selection of cocktails, wine, and beer.

Here are a few things each owner must consider before opening:

• Commercial space
• Renovations and Decor
• Kitchen supplies and equipment
• Restaurant technology
• Licenses and Permits
• Marketing
• Other hidden costs

Entertainment Venue

(The Business Journals, Seattle Entertainment Group)

Live concerts and casino entertainment are among the biggest financial components of the Tribal Gaming Industry.

Many tribal casinos spend $2-3 million yearly on talent alone. If you don’t have production assets, keep in mind the following:

Casino entertainment should generate income, especially as the equipment renting fees average $15,000 to $20,000 per show.

Securing Licensing Fees and Taxes

Regulated casinos worldwide require licensing permits, each having different fees:

• Downstate: $500 million
• Offshore: $100-300,000
• European Union: $300,000 to $1 million

License approval takes a long and extensive process, and failing to comply with these processes will result in disapproval and revocation:

• Background checks
• Screening of owners
• Procedures and Methods audit
• Ample proof that all casino games are random and fair

In addition to the licensing fees, the following US States also impose taxes and renewal fees.

Gearing up with Gambling Resources

After you find the right location, apply for licenses, and construct the building, the next step is filling your casino with games. Slot machines and table games are gambling must-haves.

Most casinos have:

• Craps
• Blackjack
• Slots
• Video poker
• Roulette

Bigger casinos offer:

• Live poker
• Sports betting
• Baccarat
• Keno

While slot machines offer a high house edge, roulette and craps have better-winning odds for players. Let’s uncover more casino assets and their related costs.

Casino Games

(casino.org, legitgamblingsites.com)

Today’s casinos are massive. Slots occupy at least 70% of the casino floor, while high-energy gambling is found in roulette, blackjack, or craps.

Costs vary per game, so it’s essential to determine which to offer. Most casinos have more slots because it has a relatively low RTP, meaning they have the biggest house edge.

Fun Fact

With casinos’ high advantage over slot machines, many people worldwide believe the games are rigged. Check out Playtoday’s myth-busting truths about slot machines.

Here are some casino games with varying costs, house edge fees, and revenue:

Casino Supplies and Equipment

(bestcasinosites.net)

One of the casino foundations is choosing the right casino equipment. Each game requires different supplies, which are expensive but necessary accessories.

While the need varies on the casino’s size, there are some supplies every casino should have. Discover below!

Dice, Playing Cards, Card Shoes, Shufflers, and Signs

Gaming materials cost an average of $100 per game. Some materials must be replaced regularly, while others last longer.

Quick Tip

Here’s what you need for each game:

• Craps: dice and croupier’s stick
• Card games: a deck of cards, automated shufflers, shoes, discard tray, and poker pucks
• Table games: signs and computer monitor

Chips

Chips complete the gambling experience, which many casinos use to customize their logo. You need at least $20,000 for chips and chip cases.

• $5 to $15 for 100 chips
• $25 to $150 for chip cases

Chairs and Furniture

One way to keep players in casinos is by making them comfortable sitting for a few hours. If their back hurts, they will leave the venue quickly. A well-designed chair will cost over $150.

Cashier Supplies

(gamblingsites.org)

Another supply casinos need is those that manage financial transactions securely. Each cent must be recorded, or you’ll be liable for any inconsistency.

Keep reading to explore more safe money-keeping options.

Dropbox, Cash Drawers, and Computers

You need at least one Dropbox to deposit all chips and cash collected per gaming table. Considering the size and materials, here is the cost of some basic cashier supplies:

• Dropbox: $50 to $250
• Cash drawer: $35

This is in addition to traditional business necessities like computers, offices, and cleaning supplies.

Counting Room

Tally rooms are equipped with camcorders and sound observation systems. Depending on the casino, the money counter in the tally room may sit on the desk or be huge and detached.

The more developed the machine is, the more advanced it recognizes fake currencies. The costs vary on the style, size, and store.

Casino Vault

Small casinos keep as much as $20 million, but bigger ones, such as Bellagio or Caesar’s Palace, keep a massive amount of money on site. The figure varies every time:

• Weekdays: $70 million
• Weekends: $100 million
• Holidays: $150 million

High money means high crime risks. Casinos can use modular vault systems for better security and storage for cash, chips, and other gaming equipment.

Staffing Costs

(Chron)

Casinos do not run themselves, so hiring and training the right employees is crucial. Some casinos employ up to 1,300 people, including some casino game changers:

• Dealers
• Pit Managers
• Pit Bosses
• Cashiers
• Customer Service Representatives
• Security Personnel
• Cleaning Crews
• Hotel Personnel
• Waitstaff
• Cooks
• Human Resources

Depending on one’s education, certifications, experience, and additional skills, salaries typically range from ​$61K​ to ​$110K​, with some reported salaries as high as ​$134K.​

Dealing with the Operating Costs

The operating costs of a casino are also relatively high. You must buy recurring supplies and replace, update, or maintain some furniture from time to time.

Each casino has different maintenance expenses, up to $50,000 or more. The most common expenses include the following:

• Rent or mortgage
• Utilities
• Employee salaries
• Advertising or marketing

Read on to discover more casino expenses that keep the business running and profitable.

Electricity

(LA Solar Group)

The average power bill costs $250,000 to $500,000 monthly. Some casinos pay over $350,000, with about a third spent on slot machines.

Las Vegas average hotels consume at least 400 million megawatts annually, while MGM Grand bills $100,000 in monthly minimum.

Water

(University of Nevada, Fox5 Vegas)

Although Las Vegas casinos have water conservation initiatives, hotel rooms spend 54% of the 3 billion gallons of water consumed yearly.

From 2020-2021, some of the top water consumers in Las Vegas were the following:

• The Venetian
• Caesars Palace
• Wynn

Heating and Air Systems

(Florida Power and Light, Arctic, Forbes, Home Advisor)

High occupancy, tobacco filtration, and ventilation, with multiple floors and rooms, are some of the challenges to HVAC systems. The cost of these systems depends on your casino needs.

Sewage Treatment Plant

(SSI, Integrated Water Services, UNLV Gaming Law Journal, express wastewater)

With 42 million annual visitors in Las Vegas consuming an average of 63 gallons of water daily, it’s no surprise that the water waste is significant.

A sewage treatment plant is an initial and continuing investment for casinos accommodating players 24/7. California Casino spent $440 million on a wastewater reuse project.

Security

(Arab America, Chron, Calder Security)

The best security doesn’t come cheap. As gamblers sometimes find ways to exploit the games, casinos need to strengthen their security to prevent players from cheating.

More reliable security will cost up to $2 million, providing the best security systems and personnel strategically placed around.

Warning

Knowing how much casinos spend on casino security should be enough for anyone to understand that cheating in games should be highly avoided.

For those wondering how individuals have managed to exploit the system, you should read to learn WHAT NOT TO DO.

• Why is Card Counting Considered Illegal?

Words to Ponder

Casinos made huge investments before enjoying the industry’s profitability. Significant expenses and overhead costs are part and parcel when planning to run a land-based casino.

The costs vary widely depending on location, size, games, and amenities. Although costly, casinos can always explore more possibilities and consider long-term success.

Nevertheless, high risk means high reward.