Topic: Can Casinos Go Bankrupt Because of Player Wins? - page 6. (Read 1639 times)

But casinos not paying the jackpot winner occurs all the time. The newly launched casino that has a limited bankroll can go bankrupt when they all exert all their funds into marketing that never work. A ton of them just close shops after a year of struggling.

If this user https://bitcointalksearch.org/topic/delete-5458169 will try his method on the new sports betting like Betfury, the casino might really find a way to suspend his account and accuse him of cheating.

It won't happen again. Almost all of casino is now having limitation for how much max win that can be won by its users. Casino will try to consider its liquidity first before try to put how big maximum price that can be taken by its winner.
I think that if it's an old problem. I rarely saw it happen in the past. Even if there was such case and casino may not fully paid its winner.

I meant i never heard casino goes bankrupt due to pay winner of its jackpot.

Behind one player who gets a very big win, there are at least 100 people who lose, maybe more, that's the situation that happens in casinos. If so many people lost there is no reason the casinos would go bankrupt. Casinos act in the same way, every game that is there has been set using a system. If you think there are people like the god of gambling like in the movie (God of Gamblers) maybe there are no casinos that still exist today.
New casinos may go bankrupt due to several reasons, due to lack of visitors due to lack of marketing, bad luck may befall casinos due to high business costs, paying taxes while their monthly income is not much different from expenses.

Never heard of a casino going bankrupt due to player winnings. Casino games usually depend on luck and good legitimate casinos are less cheated but not bankrupt. New casinos tend to be less reliable. Participation in these is very low and scams cannot survive in the market for long. These types of online scams are widespread and sophisticated. It may seem like you're finally going to get your big win, but the process is often deliberately complicated and long, and most people give up halfway through and lose their deposits. Therefore, even if the casinos give big wins, the sites should be researched well.

A new casino that wants to get its reputation must be able to provide services and have large funds to avoid bankruptcy. By having large funds, casinos can run their promotions and pay winning gamblers money, especially if gamblers manage to get big wins. This is considered important because gaining the trust of users is not easy. If the casino can pay out those large winnings, the winner will spread information through social media, which will help promote the casino to get more users. And when a gambler wins, the casino should not make it difficult for the gambler to withdraw his winnings because this is related to the reputation he will get if the casino makes the process easy.

Yes it's a fact and true that new casinos won't let winning gamblers withdraw big money from their site, let alone they maintain their liquidity, bankrupt casinos seem hard to find especially just because there are winners with big wins although there is a possibility the site will disappear and become a cheater casino with any reason will dissuade the gambler from withdrawing the money then they freeze the money for some unreasonable reason to keep the gambler from withdrawing the money.

But the case that I often see is that casinos go bankrupt because they have a bad management and marketing team so that their casinos are not really looked at by new users to gamble, because casino gamblers will go bankrupt in time because they will be burdened with site maintenance costs as well without any income. . it's rare for cases like this to go bankrupt because the player wins big

Things are much more transparent in sports betting where there is less chance of the house going bankrupt. When a sports betting session takes place where there are bets on two sides, there is no chance of the gambling platform going bankrupt rather the platform can earn some fixed profit. However, it may be slightly different in the case of casinos. Since the house always wins, there is no chance of the casino platform going bankrupt. If there is efficient management then the house will always be in profit.

Another common point I have just remembered in every day usage almost by big gambling or companies which offer large gambles to an audience is insurance cover.  Literally to make a large win possible you must absolutely cover that event actually occurring, its very bad practise to rely on nobody ever winning the largest prize (in fact that might be fraud in some cases Im not qualified to say).   Its the job of a casino to cover the event of a largest win occurring on one night, so the companies I'm thinking of and its often involving some TV or sponsored offer they must get insurance underwriting from a very large firm specialising in calculating odds of these events happening.
  To me risk is normal so this is almost a rule which can apply to every business there ever was or will be.   The other sad option taken I dont like it but often the disclaimer small print idea, just deny any ability to win above 100k for example.  I really dislike this, its unfair on the customer to limit their win but it is common and who the heck reads small print; barely anyone :/

A normal reaction to have with these kind of business on which if they do see someone whose really that always winning then for sure it would really be banned on a certain place which its understandable. It is really one of

the main risks on running a gambling or casino business is on having these lucky winners which would snip out that huge revenue of yours as an owner. You wouldn't really be easily get bankrupt since you would really be

setting out limits according into your capital and having the safe point on which you do know that you could slowly recover incase if there's a huge win. We cant really be able to tell on how fast they would be able to
replenish on what they have lost but we know that house do always win in the end which it would be not shocking if they would be able to patch it up in no time because gamblers would really be keeping on
coming back and trying to seek for more winnings which is something that circles around on gambling industry or simply on what it makes that relevant and keeps progressing.
Gambling industry is getting bigger and bigger as years passing and its totally known on whats the actual reason for that.

Obviously, that's where the phrase "break the bank" comes from. I haven't seen it happen but it has happened. Casinos won't close because of that but their value might drop. In last decade someone won $6 Million in Atlantic City, and casino refused to take any more winner's bets. (which is understandable).

I am certain that these days casinos are prepared for higher winnings and are insured for that kind of abnormal winning streaks. But i think it's even possible only in physical tables.

The important thing is everyone can be happy to get what they want. And if a gambler loses, they will still try to gamble again, and many will deposit more money. But after trying to play gambling again, some will win, and some will still lose. After all, the losing gambler will still be curious even if the casino doesn't do anything to the gambler's detriment because it depends on the gambler's luck. The casino continues to earn the trust of its customers and can continue to run its business while the gamblers continue to play to win.

That is if the casino still has the funds to continue its business. But if not, the casino has to complete the payment while waiting for the funds to be ready so that gamblers don't think it's a scam casino. And that's what casinos that are really serious about doing their business do, and casinos should be open and explain the situation and conditions to the players so they understand. With such an approach, the casino will not lose its reputation and can still run its business well.

Any organization can go bankrupt if they are not managed properly. The same case can be applied for both new and trusted casinos. First of all they have algorithm to safe guard their liquidity, they won't allow you towin big in any circumstances. If they do allow they would then the gambler might have been depositing big deposit to gamble. One of the reson why it is always a lucrative business, if you know how to manage it.

That's obvious example to casino doing mismanagement and can't exactly find funds to pay back. Those must be very very rare... I think it can't be that hard to budget a casino considering its decades old business and there are many professionals you can get help from. But in that example casino seems very amateurish. If thing go to court in developed countries it was obvious customer was going to win. That's another cost which could be avoided by better law guidance.

I mean, it's not the player who wins the jackpot, the casino goes bankrupt immediately. I mean so many players get winnings that the casino goes bankrupt. I also don't think casinos make profits every day

Like companies in general, casinos need to provide large-scale promotions, requiring large funds. In addition to promotions on sites such as (freespins, cashback, deposit bonuses, etc.). So the need for casinos is also very large. If no gamblers play then they make no profit. Moreover, casino taxes are very high

In the past there were also many ICO projects about casinos, but many failed. They failed to bring in players, failed to compete with other casinos. Without players, the casino is bound to go bankrupt

This does not happen with trusted casinos that manage their bankroll well and limit maximum bets, as has been pointed out throughout the thread. I used to invest in casino bankrolls and by tracking them you could see from time to time a big drop in bankrolls due to a big whale getting lucky, but never going bust. Although the bankroll always recovered over time and kept going up.

depends if what kind of casino are we talking or means here , If the casino is new and suddenly being played and win by luckiest player on earn?
hitting  jackpot just like that then maybe it will bankrupt .
and also there are some casino that created to scammed players and even if players only win regular amount they will gone and
pretend to be bankrupt and closing.
but if this is about legit and long running casino then I believe that this may face another area to fall that bad.
but I never heard such till now telling a casino ended like that because of player winning .

And when a player wins a big amount they can delay payment with the excuse of investigating the win while at the same time waiting for other players to lose to accumulate money to pay their winner, the casino always has an edge if they have big users and VIPs they are not just going to go down because of player wins, it seldom that casinos have 2 or 3 winners of 5 or 6 digits and if they cannot keep up anymore they will just scam their winners

Ive read stories of casinos going bankrupt, they went too far in trying to secure a high stakes player.  He made the terms of the game in his favor to such a great extent it cleared out all available cash from the casino bankroll.  This would be very serious as they can no longer continue with normal business, I know they certainly watch for fraud as the idea of running so many games only works if the odds are constantly within known parameters with some house type fee for the casino.  
  Casinos have costs and employees to pay, they might even have to pay interest on their bank roll, bonds, equity returns etc.   I think its definitely possible for a lack of cash its not as simple as it appears to always pay out instantly as is the great attraction to gambling but most after closure would be looking for the fraud reason or some bad management of the games.
   The biggest answer to the question is lack of liquidity and just lack of players, if fixed costs are too high then the casino is losing cash on a % basis per game operated so player count and traffic is important so far as I know.

The other reason Ive just read is taxes, of course a large tax liability could cause great problems for any operation.   Casinos definitely have large costs with all the paperwork required to stay in the right jurisdictions and legal framework.  This is a general worry for crypto overall at the moment unfortunately, paperwork and financing costs prior to making cash over a year is why its work to operate successfully - https://calvinayre.com/2020/03/12/casino/austrias-concord-card-casinos-goes-bankrupt-over-tax-debt

The user has obviously done that and then, a large part of it went to a “supposedly” statement which has everything being unreal about it and that could translate to mean, not happening.

Casinos do go bankrupt and out of business but, it takes more than one big win to bring about such fall. There has got yo be under underlying but being managed issues, ranging from scammers, those that exploit vulnerabilities in the system setup, bonus hunters and loosing of customers to complaints. It’s always not a very patronized idea to not deal properly with customers especially, on there wins.

Casinos going bankrupt is very rare. The major reason that could turn the casino go bankrupt will be the poor management. All the games added to the casino generate money favouring the house. The casinos keep generating money and it is the responsibility of the casino owners to invest it further on some other businesses. Casinos is a business where big money comes in everyday. We were able to see people who don't know how to spend money and loss everything when they get big money all of the sudden. Such scenario shouldn't happen, which is the real cause a casino could go bankrupt, but it won't happen these days.