Casinos have risen to prominence from very humble beginnings. In the early days, they were a preserve of the elite in society and members of the criminal underworld. In Vegas, for example, the first casino resembling modern-day casino designs was put up in 1946 by Busy Siegel, a well-known mobster. Since then, real money casinos have made significant progress for the industry to become the billion-dollar mammoth that provides table games, slots and online pokies. The key driving factor of this growth is revenue generation. Money is the driving force behind the successes made by all sectors in the world today, and the casino industry is not immune.
It is a fact that casinos and gamblers have a symbiotic relationship geared toward one goal, maximizing profits. Whenever a wager is placed, there are only two possible outcomes. Either the punter wins, denting the casino finances or loses, making casinos earn an extra buck. Whichever way a wager outcome goes, one’s finances will be affected. This write-up is dedicated to explaining how casinos can impact your private finances. So, would you like to get enlightened on how engaging in casino activities may influence your funds? Read on.
Increased Personal Wealth
Although many articles have been written contradicting this notion, it is an open secret that some people make a living from gambling. Professional gambling has been in existence since casinos became popular in the mid-20th century. Most casinos, especially those on the Vegas strip, hold tournaments for professional gamblers where winners walk away with hefty sums that significantly impact their personal wealth. It is worth noting that not only professional gamblers can win big in casinos, but novices have a chance too. With the correct gambling ethics, newbies can increase their personal wealth. For instance, punters who bet within a budget and stick to games they know tend to make money in the long run.
Casino-goers have also devised ways to make profits off casinos. Card counting is one of the popular methods used by avid gamblers to increase their earnings. Nowadays, casinos entice their customers with numerous rewards and bonuses. The most significant casino rewards that can have life-changing effects on gamblers’ finances are jackpots. Some of the mind-boggling prizes won in the recent past are listed below.
- The highest jackpot to be won in casino history was by an anonymous gambler from LA in 2003, and the amount was a staggering $39.7 million.
- Jon Hayward won $20.8 million in 2013 from a 25p bet on the mega moolah slot game at Betway casino.
- Elmer Sherwin won $21.1 million from the Megabucks slot game at Cannery Casino and Hotel.
- Johanna Heundl won $22.2 million at Bally’s Casino Las Vegas from a bet of $170 while playing the Megabucks slot.
- Cynthia Jay Brennan won $35 million at the Desert Inn Casino, Las Vegas
Maxed Out Credit Cards
Gambling is not as glamorous as some people want you to believe. Casinos are out to make a killing, which can be detrimental to punters’ private finances when achieved. In 2016, Japan was number three among the top casino markets globally. That year the country’s populace saw an accumulated net loss of $27 billion to casinos. With such figures, punters should be wary of irresponsible gambling that contributes to a decline in personal finances. Recent studies from the US have shown that people using credit cards as their preferred banking option in casinos are at a high risk of losing money. Since credit cards operate with the principle of spending than earning, many obsessive gamblers using cards gamble with more money than their income. This, in turn, leads to a credit card hitting its maximum limit, leaving a gambler in debt. Maxed out credit cards affect people’s finances negatively, as one cannot access financial aid from banks and other lending institutions.
Loss of Life Savings
There have been hits and misses throughout casino history on the side of casino-goers. Misses have been more prominent, as casino history is rampant with many people who have lost entire life savings and consequently their livelihoods courtesy of casino activities. A compulsive gambler sees money as the only problem solver to all their woes. Meaning they continue gambling, chasing that elusive huge win despite making losses, which causes a decline in their personal funds. There have been records of people using their severance pay, mortgage, and retirement benefits in casinos and later becoming destitute due to losses. Some of the largest misses in betting include but are not limited to the ones explained below.
- Terence Watanabe incurred the most significant loss in casinos in 2007; he lost an entire fortune of $127 million at the Caesars Palace Casino.
- Harry Kakavas lost $20.5 million in 2013 playing baccarat at the Melbourne Crown Casino.
- Maureen O’Connor lost $13 million playing video poker, which almost cost her mayoral position in San Diego.
- Charles Barkley lost all his earnings from an illustrious NBA career worth $30 million on poker, baccarat, and roulette.
Loss of Assets
Private finances are not limited to money in banks. Fixed assets are in this category, as they can be liquidated. Current trends in the gambling world have indicated that more people become compulsive gamblers daily. The National Council on Problem Gambling study has estimated that about 2 million people are pathological gamblers in the US alone. When these punters have used all the cash at their disposal, they turn to their assets. They sell the assets and convert them into betting money, which they eventually lose. Selling assets to gamble diminishes a gambler’s finances and affects those close to them. For instance, a father selling a house for casino activities leaves his family homeless. Remember what Terence Watanabe mentioned earlier? All that money he lost was from selling his father’s business.
Bankruptcy
All the gambling ills mentioned above lead to bankruptcy. Many punters who accrue large unpayable debts through gambling file for bankruptcy. While this may get your loan discharged, it should be the last option. Gamblers who opt for this option put a bad indelible mark on their credit records. With bankruptcy, people have had poor listings on credit reference bureaus for over ten years. Meaning for that period, if they cannot repay their debts, their private finances will remain at an all-time low.
Verdict
As stated above, gambling has many demerits, especially for compulsive gamblers. Responsible gambling is advised to make the best out of casinos and ensure one’s private finances remain intact. Most importantly, one should know when to quit, preferably when there is a decline in personal funds.