4 ms·

In one recent year, gambling took in $72 billion in the United States; movie tickets, $9.5 billion; theme parks, $10.3 billion, cable TV, $51 billion. Gambling

by ISL 5y ago

In one recent year, gambling took in $72 billion in the United States; movie tickets, $9.5 billion; theme parks, $10.3 billion, cable TV, $51 billion. Gambling is bigger than any other form of recreation and entertainment in the country. Revenue might be a misleading measure for a casino industry. If I bring $10 to the casino, win $100 in slots and proceed to lose it all, that will look like $110 in revenue.

listenallyall 5y ago
No, it won't.
- lend000 5y ago
  Do you know that? In typical broker-dealer tax reporting, gross sales would be reported as $10 billion dollars if you made 1000 low margin transactions with $10 million dollars. OP's point certainly isn't dumb and I'm now curious about how it's actually measured.
  - listenallyall 5y ago
    Yes, I know that. Also, I never said the OP was dumb.
    - lend000 5y ago
      You might have improved your original (or subsequent) comment by referencing a data point, source, or explaining why that isn't the case. Or even e.g. "source: I'm familiar with accounting rules in the industry."
      - listenallyall 5y ago
        Often, brevity is most effective. Source: human being with life experience.
  - EdwardDiego 5y ago
    Work it through. Person X spends $10 at casino C. C has gross profit of 10 at this point. X wins! C pays X $100. C's profit on X is now 10 - 100. X puts their $100 back into casino and leaves sadder and hopefully wiser. C's profit is now 10 - 100 + 100. In other words, $10.
crooked-v 5y ago
Payouts are an expense.
- listenallyall 5y ago
  This isn't true either, not in an accounting sense. As in, there is no expense line in a casino's income statement for "payouts". A casino's revenue is, with a few technical exceptions, the difference between all wagers made by customers and all payouts made back to them. So "payouts" are more like negative revenue. It's sort of like Visa, when it processes a $100 transaction, it doesn't record $100 in revenue and a $97 expense. It just records $3 in revenue. It's an important distinction since in most states in the U.S., casinos are taxed right off the top as a percentage of revenue, in addition to normal income, sales and employment taxes. (Not true of native American casinos, which are often exempt from most or all taxes)

by ISL 5y ago

listenallyall 5y ago

No, it won't.

lend000 5y ago
Do you know that? In typical broker-dealer tax reporting, gross sales would be reported as $10 billion dollars if you made 1000 low margin transactions with $10 million dollars. OP's point certainly isn't dumb and I'm now curious about how it's actually measured.
- listenallyall 5y ago
  Yes, I know that. Also, I never said the OP was dumb.
  - lend000 5y ago
    You might have improved your original (or subsequent) comment by referencing a data point, source, or explaining why that isn't the case. Or even e.g. "source: I'm familiar with accounting rules in the industry."
    - listenallyall 5y ago
      Often, brevity is most effective. Source: human being with life experience.
- EdwardDiego 5y ago
  Work it through. Person X spends $10 at casino C. C has gross profit of 10 at this point. X wins! C pays X $100. C's profit on X is now 10 - 100. X puts their $100 back into casino and leaves sadder and hopefully wiser. C's profit is now 10 - 100 + 100. In other words, $10.

crooked-v 5y ago

Payouts are an expense.

listenallyall 5y ago
This isn't true either, not in an accounting sense. As in, there is no expense line in a casino's income statement for "payouts". A casino's revenue is, with a few technical exceptions, the difference between all wagers made by customers and all payouts made back to them. So "payouts" are more like negative revenue. It's sort of like Visa, when it processes a $100 transaction, it doesn't record $100 in revenue and a $97 expense. It just records $3 in revenue. It's an important distinction since in most states in the U.S., casinos are taxed right off the top as a percentage of revenue, in addition to normal income, sales and employment taxes. (Not true of native American casinos, which are often exempt from most or all taxes)