overhead
That ridiculous "poker doesn't make money. Fact" post almost got me to respond, but the thread is getting huge. People may argue any point they wish, but if they don't back up what they say with something (facts, examples, opinions etc) then it's just hot air and wasted space.
Can't remember who posted it (matt ?) but I have quote + comments on cardroom overhead:
[ QUOTE ]
Al,
What did you calculate for space overhead? $40/sqft/year? What's the right amount?
My guess is poker will be given a broad exception in some states as gambling laws relax. Cardhouses will spring up to meet the demand. A medium-sized room in an outlying county here (outside of the Triangle) would do well, especially since building and land costs would be low. Figure overhead of about $12/sqft for building and land costs with utilities. Not sure what the tax rate would be.
If there were 12 tables with 40% occupancy and the rake were, say, $4 per hand, what kind of money would we be talking after paying everyone? Let's say 5000 sq ft to start, so about $70,000/year in building and grounds.
Also, how do you feel about living in North Carolina? ;-)
Matt
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I'm not the guru of numbers when it comes to things like building maintenance and such, therefore I did not figure anything based on square footage. I did ask some questions from various people, then estimated things like that based on their answers + what seemed reasonable. Those costs could fluctuate quite a bit without changing the overall results very much.
Let me say that a ten table room with an average 40% occupancy, 10% to $4 rake would make between $3k on a very slow day and $13k on their very best days, with the average around 7k. Another very important point is the table average will probably be around $70-$80/hour. If I get any more specific than that, I'd hafta kill ya. :-)
Al
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