Topic: Can Casinos Go Bankrupt Because of Player Wins? - page 13. (Read 1639 times)

It is very possible especially if the casino is just starting up.


It isn't hard to happen.  We all know that gambling result is random and that also applied to the house.  There are gambling platforms I read that when someone won a huge amount above the house bankroll, they pay the winner in tranches.  They do that in order for the casino to survive.  From that incident, we can see the possibility of a casino to go bankrupt after a huge win from a player.

That's right. They will fight you if that happens and it doesn't happen a lot because casinos have max bets and calculate max bonus you can get in a single game. If a casino is small and new, they aren't going to allow you to bet something like 50% of their bankroll in a single bet, or they will do it, but get ready to shut down and scam you if you win, because if they are new and their whole bank is a million dollars and you were somehow allowed to win 500k, it's easier for them to shut down and rebuild the site than pay you.

A big casino will take that risk, but they will have much more than a million dollars in the bank. If a reputable casino allows you to win big, they can afford it.

Nowadays casinos are very up to date so when people place bets they get a comprehensive information about their total assets. Moreover, it is never possible for everyone to bet on the same basket.  If most people bet a lot on one side then the odds will change drastically. As a result, even if you bet more, the return will not be much. Normally casino don't shut down for betting rewards. Casinos can bankrupt when it is hacked or lacks sufficient manpower or finances for maintenance.
 
A gambler must exercise caution when it comes to new casinos. Because you should know first whether that casino is legit or not. There are many casinos that provide good support in the beginning but later become scams.

Some could but good ones won’t. I assume multiple checks would be done if people place large, unusual bets. Fiat bookies usually hedge against a large bet by placing a similar one elsewhere just incase. Good, trustworthy casinos  don't offer jackpots they can’t afford to pay out.

So in short, a reputable, good bookie or casino will not go bust if they have to pay out a big win because there is a method to the madness. You don’t see a broke bookie or casino very often.

That is something that will indeed happen, if indeed in poor management and ownership of funds so that finance does not run smoothly running the casino business. Then have a bug that can be utilized by someone to cheat, it will be more bad in the casino, and that usually happens indeed to the new Kasiono, a lot of casinos that I find in my area that experiences bankruptcy because of the cunning of the players to get money with Easy from casino.

But if the casino goes bankrupt because of the victory of the players who play fairly, I don't think it is possible to remember that the casino can be set, but indeed if the coding system is bad can be utilized by them.
With a strategy to use many accounts to be able to outsmart the casino that can be broken in the game.

In an ideal world where every single player who entered the casino won prizes, it's possible to bankrupt the whole casino. I myself don't think these casinos imposed some form of contingency for eventualities like this cause the chances of it ever happening are slimmer than none. So while in paper it's possible to run the whole casino dry of their allocated bankroll, in reality it's not going to happen unless you're playing on a small-time casino in which case why?

Plus you also forgot about returning bettors. Players who already won but are still up for the game and would bet more in the process. There's a good chance that somewhere along their betting session they lose all of their bankroll, that's one player sustaining the whole pot once again. Now multiply that to the average casino-goer statistic, and it just makes it even more daunting to even put a dent on an established casino's pot.

you need to look at things in the following way, when 10 people put money in a casino at most 2 or 3 people will earn some small profit, but those 2 or 3 people will soon come back to play in the casino and will lose everything, so at the end of the day the 10 people who put money in the casino lost everything in the casino, and see that most of the time in those 10 people who put money in the casino there are people who put a lot of money and lost everything, so the casinos are not going to go bankrupt because of someone who have won money because nobody is profiting from games of chance, this is a reality

you can test this yourself, research how many people really manage to profit from casinos and you will see that the number are small or you will not see anyone and if someone tells you that they are profiting then you will see that it is someone who has a social network or website and profits from referrals and this person does not play in the casino because he knows he will lose money when he puts money in the casino to play, so he prefers to keep profits from referrals and make withdrawals, I think that answers your question. now there is a case where the casino is new and starts to lose customers and operating costs become very high and this is what causes the casino to go bankrupt

Casinos can go bankrupt if there are many gamblers who get very big wins at almost the same time. But that's unlikely because not many can get such big wins and most gamblers experience huge losses.

If a new casino does not have a large balance, it can go bankrupt immediately if it wins big. The casino will not be able to continue its business because of this, which makes the casino implement some things that we don't know about. But whether it is true or not, we also do not know the truth.

Yes when casino is not able to redeem payment of winners, it usually leads anger and show of vituperation especially for off line game houses but I think that is also same with the online casinos which is why we witness some players coming here to open up scam accusations thread when they win and can't claim the money.

Therefore, there are points here to note on the reasons that casinos will not be able to pay winners because they become insolvent from bettors winning.

New casinos can have this issue because they are inexperienced in most cases including setting of winning limit. Usually it is difficult to win against the house but in a situation that the players is sufficiently good, there are limits set for a winning slip. Take for example in Nigeria, gambling companies like bet9ja, betking etc, they all have limit that a betting slip potential winning amounts to and anything other than such is not allowed by the system. The maximum payouts in bet9ja and betking is #40,000,000 which is ($53.3k). With such limit, there will be an assurance to redeem payouts and the company won't go bankrupt.

Again, new casinos that have no affiliate also may go bankrupt.

I think one reason why new casinos start with just dice, crash, and lottery is because they need to make that bankroll grow. House winning the money from the unsuspecting players is good for the new casino and they better remain unsuspecting. These games are the ones that make money for the startup casino. If they still go bankrupt, then this casino is not meant to make it.

But before they file bankruptcy, they will do one last attempt like 200% bonus deposit. Sometimes this help to keep the casino running or they could end up scamming the depositors.

I do not know if you noticed "withdrawal complaints" from many gamblers at smaller casinos? These smaller casinos are still building a huge bankroll and when somebody wins something big, they try to stall the withdrawals.

You might even find that they "restrict" large withdrawals to buy some time to payout large wins. This normally escalates to players venting their anger on forums like this. (The good casinos will pay instantly) 

The question who already got the answer.

Feel free to search, most of casino can get out of business. It's not always profit, build the bankroll are the one who are really tough for casino industry especially for a small casino they need to start with a huge balance from their own pocket.

Until, the bankroll growing. The problem, If some player are hitting big at the time they're opening.

I am not sure this is possible nowadays... now every casino has ToS, and there are limitations for max bets, max wins, and maybe most important max daily/weekly/monthly withdrawals.

But +20 years ago I saw a few small casinos closing their doors (for some time or indefinitely) after some guys won some crazy jackpots, and the casino didn't have the money for a payout. But that was back then... now everything is regulated.

I hard a story sometime ago about a gambler who won high amount in sport betting and at the cash out point he was told to give the casino several weeks to put up the winning for him,  this is a clear sign that the casino lack the necessary liquidity to pay for higher amount and if the gamblers should enforce his right of being paid at all course then this casino may go into bankruptcy.

But willing the gamblers must play along with the game if they ever wants to get their winning paid,  so the answer to this question is yes, sometimes casinos lack liquidity to settle bets.

If you’re talking about online casinos, most of them are basically middlemen for larger gambling companies and just take a cut of the bet, so they don’t care one way or another if you win or lose. If you’re talking about large physical casinos, they have so much debt already, players winning huge amounts is barely a drop in the bucket.

This is impossible because Casinos are put for business and wouldn't allow any huge win to kick them out of business. So what they do is that they set a winning limit which will make gamblers not win more than a certain amount in one bet.

Also remember that you cannot win the house hedge, it is only a new casino that might not have enough funds in their system to pay a big win that can go bankrupt because they are not prepared for business. Some Casino also have stock which will help them generate funds to pay their winners. But the truth is that if you win up to the maximum limit twice. You might not be given access to gamble in that casino anymore.

When greedy casinos want to make a profit by all means they offer the client what they cannot afford. New or badly managed casinos can close up because of a customer's win because they cannot be able to afford the win. Some news casinos are scam sites that want to gain the confidence of gamblers and later rug pull stealing customers' funds. That's why it's good to stick to reputable gambling firms especially those that are recommended in the forum. Some casinos in the forum have a lot of reputation that they would not want to tarnish.

I don't know of any strategy that casino companies use to avoid loss but any one that engages in malpractice will not last or will lose reputation. Reputation is gained by credibility and integrity. I believe gambling wins are a combination of luck and skills. Running or playing in a casino is risky for both the casino and the gambler so everybody should be given a level playing ground.

Of course they will go bankrupt, just imagine this platform has just been built and running which means their funds are limited and they need their business to be able to survive by maximizing profit margin. If they continue to pay the players in a large pay, that means their expenses will increase which will then increase operational burden and that will interfere with their operations. Not only a new platform, even a platform that has long been operating will also be bankrupt if they continue to pay the players by large paid. So usually the gambling platform regulates that their systems can run by benefit them instead of the players, it can be through their rules, increasing Fees, or designing the game algorithm. The point is how to make a profitable platform not a player.

Firstly, I would like to point out that there is no legitimate way a gambler can get consistent earnings out of the casino, if we talk about rolling dices or slots , etc. However, if the casino relatively small or new then it is possible of the casino to suffer a considerable loss which could lead to cut of staff and eventual bankruptcy.

Though, it is very unlikely something like that happens, if we keep in mind how the law of probabilities work. That is one of the reasons no casino should not open without enough money to cater their users.

Of course the casino may go bankrupt, but not because someone wins all the money, because it is regulated by RTP, but because the number of gamblers will decrease. If their expenditures will not exceed the amount of money to maintain the casino (staff salaries and operating expenses), then it will either operate at zero or in deficit, and this in turn will lead to bankruptcy. As long as the casino has customers and is properly regulated, it will operate in the black.