eli5 How does Las Vega casinos afford to have major artists and make the money back?
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Unlike a concert at a sports arena or club, a casino is designed to entice guests to gamble in every way possible. Every concert guest walks past gaming tables and slot machines on their way to the show – it’s pretty much impossible to go anywhere in a casino without walking across the casino floor. And if people gamble casinos make money – as a pit boss once told us in a “how to play craps” session, “Look around, see the beautiful decorations? This casino is in the business of making money off of gambling, there is no system that will beat the house. If you gamble long enough we will win, so always take your winnings and leave while you’re ahead.”
Also, another thing to consider, casinos operate on an economy of scale when it comes to service. It is cheaper to create an infrastructure that allows a guest to stay in a hotel, order room service, go to a restaurant onsite, see a show, get a drink on the casino floor, etc, than it is to manage the infrastructure for typical concert, where you drive to a restaurant, park at an arena, head to a bar afterwards, etc. They are so optimized towards customer service that I’m willing to bet that their overhead for a concert is lower than a typical venue rented by a promoter.
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