Casino Accounting

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Featuredimage New Jersey Casinos Responsibilities to Society - New Jersey Casinos’ Responsibilities to Society

New Jersey Casinos’ Responsibilities to Society

Casino gambling is one of the top forms of entertainment in the world. Most countries allow casino operations on their soil and these casino operators generate millions of dollars. However, just like most things in life, casino or gambling has a bad side.

Gambling addiction and criminal activities are among the biggest issues involving the casino scene all over the globe. Here in New Jersey, these issues are nothing new.

To battle these issues, here are the responsibilities of casinos to society.

Educate people about responsible gambling

Responsible gambling is easy to understand. All you have to do is be responsible when you’re gambling. However, most people can’t comprehend the essence and application of responsible gambling.

Postimage New Jersey Casinos Responsibilities to Society Educate people - New Jersey Casinos’ Responsibilities to Society

It is a casino’s responsibility to not only inform but educate people about responsible gambling and if it’s advisable, implement rules that favor it. In New Jersey, a partnership was just made in October 2019 to advocate responsible gambling and eradicate problem gambling.

The partnership includes GVC Holdings’ Director of Regulatory Affairs Martin Lycka, former NFL star Amani Toomer, and Princeton Public Affairs lobbyist William Pascrel III.

Inform people about tax liabilities of gambling winners

In New Jersey, casinos, lottery, and sports betting winners are to comply with tax regulations. No one is exempted, residents and non-residents must abide. These tax responsibilities, if disobeyed may result in criminal charges.

In some cases, people are not aware of these responsibilities and are focused on the amount of money they won. So, casino operators must inform them about it. In New Jersey, dozens of casinos are holding seminars and focus groups for this particular subject. If you ask us, that is pretty awesome.

Postimage New Jersey Casinos Responsibilities to Society The Toll of Problem Gambling - New Jersey Casinos’ Responsibilities to Society

The Toll of Problem Gambling or Gambling Addiction

In New Jersey, the stigma of problem gambling continues to affect thousands of lives and not in a good way. Gambling addiction is destructive for so many aspects of our lives; financially, physically, mentally, and of course, at home.

There is a 24/7 confidential helpline for gambling addicts in New Jersey, the 1-800-GAMBLER. This helpline helps people with gambling addiction get back on track and be aware of the help they can acquire.

Online casinos in New Jersey, in fact, all over the globe, are partnering with organizations battling gambling addiction.

For most of these websites, you’ll see the phrase “responsible gambling” underneath.

These are the top three responsibilities casinos must always observe and apply.

There is also the providing of great and trustworthy casino services. It is unfortunate that there are still millions of gambling-related issues all over the world.

These days, another issue making a lot of noise and causing concern are illegal/underground casinos. There are already actions and campaigns being done, but as of now, we still have a long way to go to fully eradicate all the negative factors of gambling.

Featuredimage Benefits of Accounting Software for Casinos - Benefits of Accounting Software for Casinos

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 Trac), and Joseph Eve CasinoEDGE, casino operators are finding accounting procedures more lenient and seamless.

Accounts payable, payroll, and financial accounting are all taken care of not automatically, but disruptively by this software.

Postimage Benefits of Accounting Software for Casinos Automation - Benefits of Accounting Software for Casinos

This gives operators more focus and free time to address bigger issues and responsibilities. The technology and development behind this software are tailored for casino businesses and they observe both state and federal laws.

Revenue Audit Accuracy and Integrity

For every business, audit season is a truly stressful and nerve-wracking experience. Most businesses opt-out for paid audit services or external audit. There are internal and external audits by the way, but the process is done the same.

That process is also simplified with accounting technology and software. CasinoEdge is a popular choice for casino auditing with its extensive and intricate detailing in these tasks.

A consistent and accurate audit is also a positive asset not only for regulators but for customers as well. You can build a strong relationship with everyone and we mean everyone.

Postimage Benefits of Accounting Software for Casinos Business Intelligence - Benefits of Accounting Software for Casinos

Business Intelligence

Utilizing accounting software or technology for your casino business is just like reading and comprehending all Roth CPA magazine’s content. These technologies are meant to perfect accounting procedures that are vital for the growth or downfall of your business.

With all the information, data, and insights generated by these technologies, you are able to determine if your casino business is in good shape or not.

Featuredimage 3 Viable Casino Business Tips - 3 Viable Casino Business Tips

3 Viable Casino Business Tips

In New Jersey, the casino industry is a driving factor for the state’s economy. In August 2019, top casinos in New Jersey generated more than $39 million in revenue. You can’t help to think about how these casinos are making so much money despite the growing number of competitors.

Well, for the top casinos in New Jersey like the Borgata and Golden Nugget, attracting customers is a piece of cake since they are already part of the state’s way of life. Think about it, tourism in the state is also driven by gambling.

So, if you’re planning to start a casino business of your own, here are the top pointers you need to observe and apply.

Postimage 3 Viable Casino Business Tips Strategic Capital - 3 Viable Casino Business Tips

Strategic Capital

Just because you have enough money to start a casino business does not mean you should dive in. The amount of your capital does not determine the level of success you’ll achieve. These days, novice operators are being more strategic with their capital expenditures and are maximizing every penny they spend.

How do they do it? With research and iron clad accounting and financial procedures of course. Think about it, with viable financial support, not just amount, your casino business can better perform despite unpredictable winnings and losses.

You should establish and run your business with skill and expertise, not money. Money is simply an asset to those skills.

Know your platform and form

Is your business online or offline? Online meaning online casinos and offline meaning casino centers. Operating an online and an offline casino is different in terms of expenditures, operation, accounting procedures, and technology.

The liabilities are of course all similar. In New Jersey, online casino is king in the present.

Before you choose, assess the best platform suitable for your accounting and financial resources. With forms, there are different gambling forms. You have the usual online casino with poker, slots, blackjack, craps, roulette, and more. You also have sports betting and lotteries.

Postimage 3 Viable Casino Business Tips Learn to gamble - 3 Viable Casino Business Tips

Learn to gamble before everything else

Let’s say you’ve got everything in place, the operation, accounting, administration, and legal. You can’t really start a casino business if you haven’t experienced gambling as well. There is some information that is visible and tangible from a customer side alone.

In order to understand your audience, you need to be part of the audience first.

Featuredimage Important Casino Laws in New Jersey - Important Casino Laws in New Jersey

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, professionally, legally, and yes, physically.

Now, let’s get started, shall we?

Postimage Important Casino Laws in New Jersey New Jersey Casino Control - Important Casino Laws in New Jersey

New Jersey Casino Control Act

The act was established way back in 1977 and underwent several updates that ensures the protection and integrity of both casino operators and customers. The act shields the businesses and the consumers from the threat of criminal activities and organizations mainly predicated by illegal operations and financial evasions.

The DGE or the Division of Gaming Enforcement is tasked to overlook and assert this law through legal processes such as inspection, audit, investigation, assessment, and more. The DGE is working with the Regulatory Enforcement and Regulatory Prosecutions Bureaus in promoting and enforcing the Casino Control Act.

One important factor about this is casino accounting and internal controls. Most casinos are transparent when it comes to their profits and losses. However, that is not enough to make sure if an operator is functioning within or beyond the rules.

There are particular accounting procedures or let’s call them responsibilities involved parties have for other parties.

Postimage Important Casino Laws in New Jersey The UIGEA - Important Casino Laws in New Jersey

The UIGEA of 2006

The Unlawful Internet Gambling Enforcement Act of 2006 prohibits banks in the country from accommodating and processing financial transactions for unregulated online gambling operations.

With this act, all banks in the United States, without exemption are to not entertain, accept, and process any form of financial or accounting transactions for illegal online casinos or gambling activities.

This act is to protect online gambling patrons as well as to further promote responsible casino and gambling operations, not only in New Jersey, but throughout the entire country.

Postimage Important Casino Laws in New Jersey In a nutshell - Important Casino Laws in New Jersey

In a nutshell

There have already been several provisions under New Jersey gambling laws. For example, back in the early 1980s, the state passed a bill raining the casino gambling age requirement from 18 to 21.

For the most recent provisions, lawmakers and operators are concerned about the financial security of operators with the emergence of more and more illegal gambling activities, both online and offline.

It is also to protect the necessary financial and accounting casino procedures and liabilities.

Featuredimage Essential Accounting and Economic Casino Procedures - Essential Accounting and Economic Casino Procedures

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.

Postimage Essential Accounting and Economic Casino Procedures Profit and Loss - 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.

Postimage Essential Accounting and Economic Casino Procedures The Drop - Essential Accounting and Economic Casino Procedures

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.