Setting Table Maximum Betting Limits

Introduction | Key Principles | Setting Limits | Mathematics | Effective Maximum Bet Limits | Variable Betting | Volume Dependence | Maximum Loss Point | Variable Bet Distribution | Non High-End Casino Operation | Analysis of Results | Conclusion |

Firstly, establish what the capital reserves of the company are. What are the shareholders’ expectations from the operation? Are they risk-averse and therefore averse to using capital reserves to pay losses or fixed expenses? What are the longest and shortest periods that you must analyse? Can the shareholders look to one month but no longer than one year, or can you fix longer term strategies with comfort? What turnover volumes are experienced or forecast? What does the market expect in maximum betting limits and what effect will not meeting these have on turnover? What profile of games are on offer, or are expected to be on offer? What are the fixed and variable expenses associated with the operation? Many other questions could be asked but essentially these are the most pertinent.

Bottom line safety is often intuitively linked to offering the lesser of two maximum bet limits. However, this is volume dependant and market driven. For example it may, in fact, be safer to offer a $250,000 table maximum, in comparison to a $50,000 table maximum. Why, because the market you are attempting to attract may not respond to your offer under the $50,000 scenario, but if offered $250,000 as a maximum would generate significantly greater turnover. Based then on the following, you could calculate at what point this would be true: