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How Casinos are Financed







There are certain industries or in fact even specific business models in those industries which are the closest thing to a sure-bet as far as financial success is concerned, perhaps prompting you to want to think about finding some way to get a foot in at the door and get your slice of the pie. I mean even just a small piece of the huge online gambling pie would do well to set you up for life, wouldn’t it.

Naturally though some if not all of the most lucrative industries or markets require huge capital to get in, something which might have you justifiably thinking about going into something of a joint venture with your friends, family or existing business partners. That’s a good way to go, but you’ll need a whole lot more than the contributions of three or four of your friends to try and raise the capital to finance something like an online casino venture, unless of course one of those three or four friends of yours is Bill Gates or someone like that.

So as lucrative as something like an online casino would be, it’s pretty much an industry which is restricted to people who are already in the money and already have access to a lot of running capital – capital which could perhaps even be referred to as money they could very well retire well on, right now. In any case it would perhaps make for some very interesting reading as to how something like a casino venture is financed, whether you’re taking into account a physical casino or its online equivalent.

IPO

To give you just an idea of the magnitude of the funding required to get a casino funded, even if it’s an online casino, when a gambling group tries to raise the capital via an Initial Public Offering (taking the company public with a Stock Exchange IPO listing), it’s often not just the casino platform itself, but rather the entire company which owns the casino business, or in fact a string of casinos.

Owner contributions

As mentioned, you’d need a high calibre of contributors to put up the money required to finance a casino, whether it’s a traditional brick-and-mortar one or an online platform. So it would be a joint venture amongst some friends who are financial heavyweights, but it is indeed something that happens quite regularly to get a casino off the ground.

Huge loan

You’ll perhaps be surprised to find that debt/credit is something of a requisite to form part of any casino up-start, even if there is indicatively enough capital to get the venture off the ground. The associated credit a creditor is willing to extend just acts as some kind of regulatory indicator of the viability of the business model, so you’ll commonly find that a successful casino which is making profit still surprisingly has a massive debt on its books.

Existing operations diversification

The stakeholders in some of the most popular online casino platforms like Novibet usually diversify and put up the money to fund other online casinos, so normally the industry in its entirety is operated by a group of people who have been in the game for quite some time.