Many people are amazed by the rows of dazzling lights of slot machines upon entering a casino. Some think about the costs of owning such a business and whether it pays off in the end.
Several factors are crucial here, and a serious business plan is needed for realization. Only those who are persistent, willing to tackle lots of government and state regulations to fulfill their dream will succeed in the slot business.
The thought of starting costs for a slot business is where the majority of people give up. Even though it can be quite demanding, with careful financial analysis, everything is possible. Starting costs can vary drastically from person to person, but the two main things to take into consideration before creating a Vegas slots business are:
- Buying Slot Machines – Costs can come down to numerous factors: the manufacturer, the intellectual property, the quality of the hardware, and finally, how much the owner is ready to pay. A brand-new slot machine usually costs between $15,000 and $25,000, but buying used slot machines can save the owner at least 50 percent per machine.
- Maintenance – Keeping the slots working and covering any unexpected expenses.
- Getting a License – There’s an application fee of $150 and an investigation fee of $550. This amount is non-refundable, and the Board may also require additional fees and costs needed for the completion of the investigation. Also, a deposit is required to be paid in advance, so the Board can start with the application process.
Getting a License in Vegas
To begin with, a restricted license is needed, which is issued for the operation of not more than 15 slot machines and no other games.
Besides license costs, another thing to keep in mind when applying is the duration of the process. There is no approximate time frame given neither by the Nevada Gaming Control Act nor Regulation 4. Therefore, many factors influence how long it takes to get from filing an application to a hearing. Typically, the whole process lasts from six to eight months.
Finding the Right Space
Space plays one of the crucial factors when getting a license. Besides favorable laws allowing gambling across the specific zone, it also has to be well connected to the nearby highway. Spots that are most likely to get a license are near bars, taverns, saloons, restaurants with a separate bar area, liquor stores, grocery stores, convenience stores, and drugstores.
On the other hand, there are also spaces one should avoid, such as spaces without surveillance, not easily approachable by the police, and near a church, school, or children’s playground.
Individual Slots or a Casino?
When starting a business, it is very challenging to get a restricted license, especially the non-restricted one, because the Nevada law requests are demanding. For individual slots, the restricted license is enough, so it’s recommended for those starting in the slots business.
However, it’s possible to own up to 10 percent of casino shares without having a non-restricted license. But, anyone choosing a casino as their starting business or owning more than 10 percent of casino shares has to own a non-restricted license.
For beginners not advanced in the casino business, it’s best to start small and build their way up or start an online slot business. They are becoming increasingly popular, especially for those living far away from America, for example, to experience Vegas slots on House of Fun.
Hiring Staff Members
When hiring staff members, it’s essential to focus on all the qualities someone needs when working with people. As a staff member in any gambling object, a person needs to be alert at all times and constantly monitor customers’ activities.
Simultaneously, they ensure that all game rules are being respected and there’s no conflict between the gamblers. At the same time, they should provide the customers with a pleasant experience and make an effort to meet their demands. So, when hiring staff members, one should prioritize interaction with other people, problem-solving skills, and the ability to multitask.
Buying slots is unquestionably the biggest expense when starting a slot business. According to individual financial abilities, one can buy brand-new or used slot machines. Brand-new ones are more expensive but should last longer. Used ones may be good for a start, mostly because they can cost at least 50 percent less than new ones. They can be found on various auctions or sales.
However, it’s crucial to have some money saved up on the side since regular maintenance and unexpected expenses need to be included. The more the slot machine is being used, the more maintenance it will need.
Online or Offline Slots?
Both online and offline slots have their advantages and disadvantages. Besides playing from the comfort of your home, online slots are known for lower betting limits, a bigger selection of games, safety and identity protection, tournaments, and no crowds or wait-time.
On the other hand, offline slots are better for experiencing the notorious Vegas atmosphere and dazzling lights.