Economic Efficiency and Nuances of Micro Casino Administration

About the Concept

Micro casino is a small location with slot machines, card or roulette tables, and lottery terminals.

The government can:

• introduce limits on the amount of gambling equipment in such a hall;
• change licensing rules;
• set requirements for conducting settlement operations through the cashier.

Compact establishments are usually built far from large entertainment centres. Very rarely, mini-casinos are connected with other infrastructure facilities, such as cinemas, hotels, bars, or restaurants. Usually, these are small autonomous premises intended only for playing cards and launching slot machines.

Countries Where Compact Locations Are Common

These are mainly jurisdictions with centuries-old traditions and legalised land-based gambling sector:

United Kingdom

The state can rightfully be considered the birthplace of mini-casinos. The first such companies appeared in the UK in the 19th century and became a favourite place for workers to spend leisure time. They gathered in clubs after hard shifts at factories, communicated, and placed bets.

Initially, micro locations only allowed people to play cards (poker, blackjack, and baccarat). After the invention of electronic slots at the beginning of the 20th century, they began to be offered there as well.

Today, the operating procedure of compact premises is regulated by the Gambling Act of 2005, according to which:

• to legally open a smaller casino, it is necessary to obtain a licence;
• the minimum area of ​​the entertainment zone is 500 sq. m.;
• the non-gaming zone must be no less than 250 sq. m. (this includes toilets, lobbies, as well as leisure and service facilities);
• the establishment may place a roulette, card tables, and up to 80 slot machines of categories B1–D (excluding raffles), provided that the ratio will be 2:1;
• if bets are accepted via self-service terminals, and not through the cash desk, then up to 40 of them can be placed in the micro casino;
• entrance to the hall is forbidden for persons under 18 years old.

If entrepreneurs plan to sell alcohol in a compact location, then they must obtain a separate licence.

Compact gambling establishments are in great demand in North East England, Yorkshire, Humber, East Midlands, and other regions of the United Kingdom.

USA

For a long time, the operation of mini-casinos was limited to reservations, with the exception of large entertainment zones like Las Vegas or Atlantic City. In 2018, after changes in legislation, the federal government allowed regions to independently determine their policies regarding games for money.

Currently, land-based gambling clubs are allowed in more than 25 states. These are jurisdictions with a predominantly indigenous group on the East and West Coasts, the Midwest, whose economies are inferior to large technological regions (California and Washington).

Let us consider how the work of smaller casinos is organised in Pennsylvania:

1. Features of locations (of Category 4). They can accommodate from 350 to 700 units of equipment (slot machines, consoles, and video attractions) and up to 40 card tables. For comparison, Category 3 complexes have up to 600 slots and 50 tables for playing poker, blackjack, or roulette.
2. Limitations on the number of establishments. The law of Pennsylvania permits the existence of up to 10 micro casinos in the state. They must be placed far from each other. For this reason, they appear in different districts and municipalities. Certificates are raffled off at special auctions.
3. Particular fiscal regime. Entrepreneurs pay 4% of the gross gaming revenue received from slot machines. Half of the proceeds are redirected in the form of grants to the hosting county, and the rest goes to the municipality. The tax rate for card tables is 2% of GGR. Money is distributed according to a similar principle.

Mini-casinos are allowed to operate in Delaware, Ohio, West Virginia, Michigan, and other states. Each of them has identical regulations and restrictions on the area, the number of gambling equipment, and the distance from other entertainment centres.

Romania

The country has a licensed market, and betting is quite popular here. Large complexes, micro locations, bingo halls, as well as lottery and bookmaker’s offices are allowed here.

The work of compact premises is regulated according to the same principle as the activities of major brands. Establishments must be situated at a distance from hospitals, clinics, kindergartens, schools, and universities. In addition, it is prohibited to open casinos in towns with less than 15 thousand residents.

Advantages of Launching Smaller Gambling Clubs

Let us consider why entrepreneurs pay attention to mini-casinos:

1. Minimal start-up costs. They are not comparable to the expenses of large complexes where both the rental and utility payments are higher. In micro-locations, everything is much simpler, which is well-suited for operators with a modest budget.
2. Governmental support. Local authorities are interested in having such companies in their regions, districts, and municipalities. This increases treasury revenues, which are then redistributed for social infrastructure development. Business owners also receive benefits, grants, and tax breaks.
3. Investment attractiveness. Entrepreneurs are increasingly turning their attention to compact gaming venues due to the affordable cost of opening and the novelty for the industry. Moreover, the presentation of such a facility is a good opportunity to diversify risks and quickly enter the market.
4. Simple administration. Managing a small hall is easier and less expensive. For high-quality work, it is enough to hire 3–4 employees who will be responsible for serving visitors. Other tasks (for example, highly accurate verification of clients or carrying out transactions) can be solved with the help of modern software.
5. Low competition. Despite the centuries-old history in some countries, in general, the popularity of mini-casinos is only gaining momentum. Many businessmen prefer only smaller platforms, wanting to redistribute their investments. Therefore, it is expected that the trend will only grow, and with it, concurrence in the sector.

How to Open a Compact Entertainment Hall

Let us consider the main steps required to launch such a project.

Searching Premises

Each jurisdiction puts forward its unique requirements for real estate. As a rule, it should have dedicated recreation areas, and utility rooms, as well as several entrances and exits (for visitors, staff, and emergency doors).

The halls must have ventilation, fire safety, and video surveillance systems.

The design of a micro casino depends on the operators' wishes and preferences. The location can be decorated in a traditional style or, conversely, eclecticism combined with high-tech elements.

Purchase of Hardware

Project owners will need the following equipment:

1. Slot machines. These are floor-standing devices with multiple monitors, an interactive control panel, and powerful subwoofers. For the convenience of clients, slots are equipped with soft chairs, footrests, and cup holders.
2. Lottery terminals. They are designed for lotteries, bingo, keno, and other games. These products can be equipped with bill acceptors, ticket printers, and additional screens for displaying results.
3. Gamebooks. Such equipment has access to the Internet via Wi-Fi or 3G modem, as well as specially installed software. Thanks to this, gamblers can play in a convenient place (for example, in a lounge or near a bar) and at any time.
4. Additional hardware. These are computers, laptops, joysticks, card shuffling machines, and other solutions that facilitate the management of the hall. An excellent idea would be to install huge wall monitors. They can show the results of rounds, place advertisements, and announce future tournaments.

Buying Furniture

The main attention should be paid to tables for playing cards and roulette. They differ in shape, number of seats, and markings. It is better to choose objects made of valuable wood and high-quality wear-resistant cloth.

Entrepreneurs will also need:

• chairs;
• pit stands;
• sofas;
• armchairs.

Software Installation

Program components are responsible for security, cash transactions, and tournament organisation. Today, most operations in land-based casinos are automated, including the accrual of bonuses and privileges for regular customers.

The Main Things about Compact Gambling Halls

Key aspects that project owners need to take into account:

• The advantages of opening smaller premises include low start-up costs, simple administration, and low competition. Compact establishments have sufficient investment attractiveness and support from the state.
• To start this kind of business, it is necessary to find suitable premises and buy equipment or furniture. Entrepreneurs will also need modern software that will simplify the management of the gambling facility.
• Micro casinos are extremely popular in the USA, the United Kingdom, Romania, and other countries with legalised betting.

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