What is ‘Gross Revenue’?
Gross revenue is the total amount of revenue taken by a business or establishment, usually before any taxes or deductions are removed. Gross gaming revenue is the profit made by a casino through wins. The gross revenue is calculated by the amount taken in bets, minus the amount paid out in wins. Gross revenue varies dramatically between casino establishments, with the leading casinos making billions per year. Players who are regulars at the table might also talk about their finances in terms of gross revenue – the amount they win over a set period, minus the amount they pay to play.
‘Gross Revenue’ Explained
Casinos and bookmakers are businesses like any other, with the aim of making a profit for the owners while covering the costs of operation. For gambling establishments, money is made by winning bets off the customers. The casino also has to cover the cost of wins. The overall profit – that is, the amount won minus the amount paid out – is known as the gross revenue. This is an important metric for the casino because it shows what the general cash value of the business is. To improve gross revenue and retain as much profit as possible, casinos often have a high house edge against the player. This means that the games offered tend to favor the casino.
Gross revenue does not take into account other business deductions commonly made by casinos, such as staff costs and hospitality expenses. It also does not include taxes. ‘Gross’ means total, so gross revenue is the total amount of money being earned by the casino. The amount after any expenses are deducted is the net revenue, and it is this figure which investors and backers, financial managers, tax officials and gambling regulators are interested in.