Non Negotiables

Introduction | Walkthrough | Mathematical Ratios | Revenue Calculation Comparisons for Various Games After Tax | Non Negotiables on Roulette | Other Methods of Explanation | Conclusion |

Many Casino people outside of the Australasian region are unaware of the specific nuances of working with non negotiable chips and paying commissions based on their turnover to junket group operators.

Here we are talking about major Asian junkets where front monies in excess of $400,000 is generally required for the group with individual members needing at least $50,000 to participate.

It was recently estimated that in Australia in 1994/95 these junket groups generated approximately $280.5 million in revenue. Since then, with the major new permanent Casinos of Crown (Melbourne), Sydney Harbour (Sydney), Reef (Cairns) and Conrad Treasury (Brisbane) all entering this market aggressively, it is believed that total annual revenues generated will exceed $700 million by the year 2000 (source: Bain and Co : “Casinos – Australias Booming Industry”).

It is therefore an important market segment which has been stimulated by the payment of commissions and/or rebates to junket operators or individual players. A key element in marketing to this segment has been the use of non-negotiable chips to track play.

A simple “walkthrough” of the systematic process may assist in understanding what non negotiable chips are and how they are used.