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Benefits of Accounting Software for Casinos

More and more accounting software designed specifically for casino procedures are surfacing one by one. Modern technology caught up with gaming years ago, now, it’s closing in on casino accounting. Automation With accounting software like CasinoEdge Intacct, CAS (Casino Cash Read more…

Essential Accounting and Economic Casino Procedures

In the casino business, economies of scale are important. It’s not just about generating a large amount of profit but saving a big amount as well. However, you need to make sure that the standard of casino services and products Read more…

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Important Casino Laws in New Jersey

The casino scene in the Garden State is out of this world. Speaking infrastructures, modernization, services, accommodation, and operation, it is on a global standard. One key asset of that is the many laws protecting casino operators and customers financially, Read more…

Essential Accounting and Economic Casino Procedures

In the casino business, economies of scale are important. It’s not just about generating a large amount of profit but saving a big amount as well. However, you need to make sure that the standard of casino services and products you provide are on an upward trajectory.

Before we start, did you know that the casino industry in America skyrocketed past $90 billion, wait for it, back in 2009. More and more casinos are learning to utilize key accounting components not to just stay in business but to take over the competition.

Now, here are the essential accounting and economic casino procedures.

Profit and Loss

Are you familiar with a casino’s EBITDA? Well, it stands for earnings before interest, taxes, depreciation and amortization. It is important to calculate and assess the casino’s profits and losses.

You can’t base the number from casino’s gaming winnings and losses alone.

Here’s how you calculate to get the casino’s net profit figure. First, combine casino win and loss. Then, make sure to get the total earnings from added casino services like food, drinks, parking, and other services.

Next, tally all the operating and administrative expenses such as security, amenities, utilities, marketing, and payroll. Then, subtract the total amount of these expenses from the total revenue. From that you get your EBITDA.

The last step entails subtracting all outstanding or applicable loans, taxes (federal and state), amortization of purchases and depreciation of assets. You then get your casino’s net profit figure.

This is where you assess if your casino is generating a profit or not. This is where you also determine what’s working and what’s not.

The Drop

The Drop, are you familiar with this term? The Drop is the total amount from exchanged casino chips or tokens by customers. Don’t get it wrong though, this accounting component does not calculate a casino’s daily revenue.

The Drop is merely a basis when it comes to calculating your daily revenue. That is still determined with casino winnings and losses.

The Handle

This is the sum of the casino customer wagers. Getting these numbers is important when adapting to loss circumstances and to strategize management as well.

Casino Gaming Win/Loss

In the casino business, some days are good, some days are bad. This goes to both the casino and the customers. Some days you win, some days you lose. It is important for a casino to determine if a particular day is a win or a loss.

Win meaning, the casino made money and loss if the casino loses money. This must be done per game and not in general. For example, it’s a lot harder to determine if your casino’s poker tables made money or not.

Slot machines have built-in calculation software for that. This is where you subtract the total of chips and/or tokens cashed back in by your patrons from the drop.

With this one, there’s not much you can do to put the stakes in your favor.

It’s a casino, so you can’t decide if a customer will win or not. However, casinos always have the upper hand with the house edge strategy.

House edge is the mathematical advantage the casino has over customers.

If you’re in the casino business, you should be aware of these, tax responsibilities, and more.

Gambling Winnings: Tax Responsibilities in the Garden State

New Jersey’s Division of Taxation, unlike the gambling industry is not so lenient when it comes to implementing and monitoring tax responsibilities. It does not matter if you’re a resident of the state or not, you are not exempted from these rules.

Don’t worry though, these rules are actually helping both casino operators and consumers in terms of financial security.

Accounting professionals working for casinos and gambling providers are on top of these things given that these responsibilities are not always agreed upon by consumers.

Gambling forms affected

When we say gambling tax responsibilities, we’re referring not only to casinos but lottery and sports betting as well. Winnings or net gambling winnings are required to be included in an individual’s New Jersey Gross Income Tax Return.

Estimating Income Taxes

Accounting offices of casinos are required to work alongside NJ’s Division of Taxation when it comes to estimating income taxes. There is a taxation and accounting procedure for this estimation, and we can’t really explain it here.

Not that we are incapable of doing so, rather it’s a really extensive and lengthy process and you need a professional to help you understand.

If you want the full document, you can visit state.nj.us website and download the document under the taxation tab.

Taxable Income

People can calculate taxable income and they can use their gambling losses to offset their gambling winnings from the same year. However, this is only accepted as long as the amount of your losses does not exceed the amount of your winnings.

So, long story short, it does not matter if you’re from the Garden State or not, even certain estates and trusts are covered under these responsibilities.