Nebraska, Gambling might be too expensive for casinos - page 2.

Kemarit

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Quote from: acroman08 on November 16, 2021, 06:53:23 AM

Quote from: fiulpro on November 16, 2021, 03:38:54 AM

-snip

If they are worried about winding up with too many casinos, then why not just limit how many can operate in their state?

I think putting up a hefty $1M as fee, then the State thinks that it is a deterrent already and maybe some casino's will look somewhere else wherein it in cheap.

Quote from: acroman08 on November 16, 2021, 06:53:23 AM

$1M is not that bad if the validity is 20 years. it only looks bad since the casino owner would have to pay $1M upfront. that being said, I am curious whether they would be issuing a license that is less than 20 years and how much does it cost.

True, in paper it seems to be very high fees for casinos, but for 20 years they can manage it and it will be sustainable and profitable.

And maybe this is the way Nebraska can regulate casinos in their state. So let's see how this state propose legislation will do.

timerland

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Oh boy, that is a steep price.

Having that sort of restrictive practice on licensing just makes sure that there will never be positive regulation.

It's the complete opposite of what you want casinos to do. You want them to be able to afford the license so that you can actively exert oversight, and make sure that the clients are treated fairly. Not deter them from getting a license.

TimeTeller

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Quote from: samcrypto on November 16, 2021, 05:52:49 PM

Paying in advance without any guarantee that you’ll get your license later on is too risky for the casinos, and that’s too expensive for a start up casinos who don’t even have much capital maybe fees should depend on the size of casinos.

Anyway, fees are expensive so this is why the house have to always win, they can’t afford to lose money especially on that kind of fees, they’ll get this to the players in due time.

If the casino is willing to pay for this amount to get their license, then, I believe, they already do their math how to get it back.
Because if they are not so sure about their business, then they can always start small and not pay the upfront fee.
But if they have good financial backing and they already did their financial assessments, that amount is not too big for them.
Starting physical casinos requires huge amount of money, this is why the amount to get license, for them should not be a big deal.
It may be different when it comes to online casinos, as a lot are starting with small bankroll.

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Quote from: Vaskiy on November 16, 2021, 05:51:04 PM

If you go through the average revenue of a casino it won't look like a big money being spend for licensing. On an average a casino earns minimum of $72 million a year. How far this is true, I'm not sure about it. However if that's true mere $1 million doesn't look like a big money. Same time there are casinos that have gone bankruptcy, but those are very rare.

Youre right!

This is just a small amount if you do look at on bigger picture or just considering on how big casinos do make out some money or profits.So I don't really see it as a major or big problem by casinos or even if you are just new we would say but you cant build a business like this if you don't have enough funding
or you aren't aware about these expenses.

Small amount for them to pay on yearly basis which it is really just peanuts.

samcrypto

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Paying in advance without any guarantee that you’ll get your license later on is too risky for the casinos, and that’s too expensive for a start up casinos who don’t even have much capital maybe fees should depend on the size of casinos.

Anyway, fees are expensive so this is why the house have to always win, they can’t afford to lose money especially on that kind of fees, they’ll get this to the players in due time.

Vaskiy

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If you go through the average revenue of a casino it won't look like a big money being spend for licensing. On an average a casino earns minimum of $72 million a year. How far this is true, I'm not sure about it. However if that's true mere $1 million doesn't look like a big money. Same time there are casinos that have gone bankruptcy, but those are very rare.

Hamphser

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Quote from: hello_good_sir on November 16, 2021, 05:15:41 PM

I honestly wouldn't be surprised that $1 million is on the lower end of the fee spectrum for licenses in the US.

Worse yet, a lot of jurisdictions don't even grant gambling licenses regardless of how much money they get offered.

That's just the harsh reality of things, and probably encourages underground gambling too.

Looking at the cost above showed then license cost plus annual fees plus that short term duration of effect is something bullshit on my opinion.

They are really taking advantage with such industry into those country which did really allow gambling businesses and its true that there are places on the world which does prohibit out despite of the opportunity that it could give when it comes to revenue.

Same as you presumed then i wont be surprised about 1M price of getting a license in near future.

hello_good_sir

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I honestly wouldn't be surprised that $1 million is on the lower end of the fee spectrum for licenses in the US.

Worse yet, a lot of jurisdictions don't even grant gambling licenses regardless of how much money they get offered.

That's just the harsh reality of things, and probably encourages underground gambling too.

Smartprofit

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Quote from: Wexnident on November 16, 2021, 06:26:49 AM

It shouldn't be that bad I think, but upfront payment? That's kinda odd. Maybe pay half then split the rest in a monthly payment for a year instead? It'd probably be easier for the casino since in the price in general IS higher than other casinos after all. Though ig if it was an old-time casino I'd reckon it wouldn't be hard for the casino to bear the costs upfront, but hey, it'd still be helpful for developing the casino itself instead of spending it for the license at the start no?

Yes, it's a little surprising that this amount has to be paid in advance ...

Maybe there is a corruption component in this proposal? Hopefully it isn't.

In general, it is normal for a classic investor when you first invest in a project and then gradually make a profit. The prepayment is likely to insure the investor against risks associated with a change in municipal government and unexpected termination of the contract.

Revoking a license is not very pleasant.

That is why an advance payment is made (20 years in advance). People are inherently gambling. The casino is always a profitable business.

acroman08

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Quote from: fiulpro on November 16, 2021, 03:38:54 AM

-snip

If they are worried about winding up with too many casinos, then why not just limit how many can operate in their state?

$1M is not that bad if the validity is 20 years. it only looks bad since the casino owner would have to pay $1M upfront. that being said, I am curious whether they would be issuing a license that is less than 20 years and how much does it cost.

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It shouldn't be that bad I think, but upfront payment? That's kinda odd. Maybe pay half then split the rest in a monthly payment for a year instead? It'd probably be easier for the casino since in the price in general IS higher than other casinos after all. Though ig if it was an old-time casino I'd reckon it wouldn't be hard for the casino to bear the costs upfront, but hey, it'd still be helpful for developing the casino itself instead of spending it for the license at the start no?

Yaunfitda

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I doubt that there is such a thing that is too expensive for casino's even the license fee.

These casino's have a lot of investors, or sometime it's a consortium wherein they really have a lot of money to begin with. They can afford to build world class billion dollars casino in short amount of time and then started to get what they've spend and profit in the next coming years. 20 years? I think that will be enough for them to really cover everything and then some.

ipanks

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If the casino can pay half of the total fee upfront or split it into many periods, I think the casino will not have a problem since they can run their business and collect the money to pay the fee. Maybe the regulations need to be reduced or modified so the casino will not feel difficult to follow the rules.

If the rules are very strict for the casino and the visitors, I am afraid that many casinos will not open their business in that area and the casino owner will find other places to run their business. It needs more discussion from the casino owner and the authority because that is related to them.

swogerino

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It may look like it is a big one time fee but actually that is a ridiculous amount for a casino in Nebraska.The amount if it comes forth it means 50.000 dollars a year which any simple casino can afford it.If only a big whale,a player that plays huge amounts of money loses big it means the casino already recovered their license fee for that year,keep in mind though that in a casino usually comes much more than just one whale player,so in the end it is not an expensive fee at all.

cabron

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Isn't this for the security of the racetrack business which they are allowing businessmen to put up a casino within the vicinity of this race track mentioned n the article?

The Nebraska Racing and Gaming Commission will reassure that there will be gamblers that will go inside thier casino since they are providing a race track venue. This is close to guaranteeing the casino businesses to prosper but I have no idea about Nebraska situation though, are they going to make this place a Las Vegas kind?

You have to make sure you are up to it for 20 years otherwise quit now. Cheesy

YOSHIE

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I try to study and see one source related to license fees and gambling taxes.
As said below.

https://gaming.nv.gov/index.aspx?page=94

Quote

SPECIAL NOTICE

In addition to State administered gaming license fees and taxes, various other license fees and taxes may be required by the Federal Government and local governmental units throughout Nevada. Applicants for gaming licenses and existing gaming licensees should contact these other governmental units for information regarding the license fees and tax rates administered by them. Inquiries concerning reporting requirements should be directed to the Tax & License Division of the Nevada Gaming Control Board.

In the quote above, I conclude that the licensing fee for each type of gambling and the structure of the gambling site, the fee depends on the rules of the particular country in implementing it, different countries have different gambling license fees, there are the cheapest and up to the highest as you said, but it all depends on how many years they take, for example: 1-20 years, just multiply the year.

As you said, probably among the casinos operating in Nebraska the most expensive licensing fees, I've also seen online casinos in the United States, not the middle part, the other part that caters to the casino, the license fee is around $30,000/5 year or $70,000/7 year, which is cheaply the license renewal fee is around $2800/year.

Conclusion: the license fee in Nebraska if it's $1 million, in 20 years, that means/year the casinos there have to pay a license fee of around $50,000/year, not much different from other casinos in other parts of America.

fiulpro

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What do you think might be the cost of a Casino license? Even if you are taking it for 20 years, I do not think you ever thought it would be 1 million!!

Apparently in Nebraska if you would go according to the new reforms that might be coming forth, the casinos might have to pay 1 million to issue them a license that would work for 20 years.

Other than that there would be other regulations like :
1. People won't be allowed to smoke
2. Only the security is allowed to carry the firearms

Public hearing would be on 17th December but asking the casinos to pay all of this fee upfront might be a bit too harsh.

What do you think ?

source

Let me add an image from google highlighting the normal license fee for other states and regions

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Topic: Nebraska, Gambling might be too expensive for casinos - page 2. (Read 219 times)