Anyone who has ever visited a casino can't help but wonder how much the owner makes? How much can one rake in on the roulette table or from the blackjack players?
Well, with the assistance of a prospectus, issued on the institutional placement of Shahar Hamillenium shares this week, we can shed a little light on the subject.
Shahar Hamillenium operates the Loutraki and Rhodes casinos in Greece, both of which are owned by the Miloumor company. The prospectus reveals the working of a modern-day gambling joint.
At Loutraki, a city not far from Athens, the casino runs 70 gaming tables - roulette, blackjack and poker - and some 700 slot machines. It employs 1,135 staffers, including dealers, shift managers, cashiers, supervisors, security guards, maintenance workers, kitchen staff and waiters. In 2003, the casino attracted 900,000 customers; some 440,000 visited in the first half of this year. On average, some 2,470 people visit the Loutraki Casino each day. The Greeks account for 93 percent of the clientele.
These gamblers spend some 2.3 million euros on an average day at Loutraki, which works out to an average of 900 euros per person per day. The casino makes an average profit of between 180-200 euros from each gambler in one evening. In other words, the Loutraki Casino earns an average 540,000 euros on a typical evening.
The casino's operating profits in the first half of 2004 reached 29.4 million euros, with net profits totaling 15.3 million euros. The Greek government also takes a 12.5 euro tariff from each casino visitor. The casino also practices a differential pricing policy, granting discounts to frequent visitors or those from whom it believes it can make larger potential profits.
The casino was set up back in the mid-1990s, when the Greek government issued a tender to set up three casinos. A group of Israelis, headed by Freddy Robinson and Yigal Zilka, spotted the opportunity and won the tender for the Loutraki Casino. The consortium drew in the Loutraki municipality, in a deal that sees the municipality take an ever-increasing share in the venture, up to a 50 percent stake in the 38th year of the contract. On the 50th year, the Loutraki City Hall becomes its outright owner.
As for the prospectus, it clearly worked its charm. Shahar Hamillenium raised NIS 73 million this week from Israeli institutionals.
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