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Key Takeaways
- Daily tracking of Gross Gaming Revenue (GGR) and Win Per Unit (WPU) is non-negotiable for achieving the projected $269 million EBITDA in the first year.
- To ensure long-term stability against high fixed costs, management must aggressively pursue diversification, targeting a Non-Gaming Revenue Mix above 30% through cross-selling hotel and F&B assets.
- Maintaining the high average revenue per gaming visit of $15,000 is crucial for offsetting significant annual overheads, including substantial labor costs and variable taxes.
- Strategic oversight demands weekly analysis of the Contribution Margin by segmenting players and tightly controlling the high initial marketing spend relative to the Cost Per Acquisition (CPA).
KPI 1 : Gross Gaming Revenue (GGR)
Definition
Gross Gaming Revenue (GGR) is the total money the casino keeps from betting before paying any operating costs. It is the single most important measure showing exactly how much the gaming floor earned from players' wagers today. You calculate it by taking all the money bet and subtracting all the money paid out to winners.
Advantages
- Shows immediate operational performance health.
- Directly measures the effectiveness of the game mix.
- Flags variance from expected theoretical holds quickly.
Disadvantages
- Ignores all operating expenses, like labor costs.
- Does not reflect non-gaming revenue streams like hotel.
- Can be temporarily skewed by large, unpredictable jackpots.
Industry Benchmarks
In the gaming sector, GGR is the primary top-line metric, often compared against the theoretical hold percentage built into the games. High-end resorts aim for GGR to consistently meet or exceed 90% of the theoretical win potential across their slot and table game inventory. Missing this target daily suggests immediate issues with game configuration or floor management.
How To Improve
- Optimize the game mix toward higher house-edge offerings.
- Increase player theoretical value through better tracking systems.
- Manage complimentary issuance based strictly on Average Daily Theoretical (ADT).
How To Calculate
Example of Calculation
If players wagered $100,000 across all tables and machines yesterday, and the house paid out $88,000 in winnings to those players, the GGR is calculated directly.
This $12,000 is the gross profit before considering the $15,000 in fixed overhead or the variable costs associated with running the floor.
Tips and Trics
- Review GGR before 9:00 AM daily for overnight results.
- Correlate daily GGR dips with specific marketing promotions run.
- Use GGR variance to adjust staffing levels for the next shift immediately.
- Ensure payouts are reconciled against the cage/vault immediately; defintely don't wait.
KPI 2 : Win Per Unit (WPU)
Definition
Win Per Unit (WPU) shows how much revenue each gaming machine or table generates on an average day. It’s the core metric for judging the efficiency of your floor assets, calculated using your Gross Gaming Revenue (GGR). You need to watch this number every day to spot immediate performance issues.
Advantages
- Pinpoints underperforming assets needing replacement or relocation.
- Directly links floor layout decisions to daily revenue impact.
- Allows for real-time adjustments to game mix based on performance.
Disadvantages
- Doesn't account for player loyalty or long-term value (LTV).
- Can be skewed by short-term variance in high-limit tables.
- Ignores the operational cost of running the specific unit.
Industry Benchmarks
Benchmarks vary widely by machine type; a standard slot machine might target $150–$300 WPU, while a live table game often aims higher, perhaps $800–$1,500 daily. Comparing your actual WPU against these established standards tells you immediately if your floor mix is optimized for your target market. It's defintely how you gauge asset health.
How To Improve
- Analyze GGR by machine denomination to shift floor space allocation.
- Test new game titles in small batches to quickly identify high performers.
- Ensure high-value players are seated at tables matching their expected ADT.
How To Calculate
You calculate WPU by taking the total Gross Gaming Revenue (GGR) for a period—which is Total Wagers minus Payouts—and dividing it by the number of units operating during that time. This gives you the average revenue generated by each asset daily.
Example of Calculation
Say your gaming floor has 500 active units today, and after accounting for all payouts, your Gross Gaming Revenue (GGR) came in at $150,000 for the 24-hour period. Here’s the quick math to find the average revenue per machine or table.
Tips and Trics
- Segment WPU by game type for accurate comparison.
- Review WPU data every morning before the shift starts.
- Watch for dips coinciding with major local events.
- Ensure your unit count reflects only machines actively available for play.
KPI 3 : Average Daily Theoretical (ADT)
Definition
Average Daily Theoretical (ADT) measures the expected loss a player generates based on their betting volume, time spent playing, and the game’s inherent advantage. You review this metric weekly using player tracking data to precisely calculate the appropriate complimentaries (comps) you should offer. This number is the foundation for managing your player reinvestment budget.
Advantages
- Sets precise comp budgets based on expected value, not just historical spend.
- Identifies players whose actual win/loss deviates significantly from the theoretical expectation.
- Allows for proactive management of player retention costs against Gross Gaming Revenue (GGR).
Disadvantages
- It is only theoretical; actual player outcomes can vary wildly in the short term.
- Accuracy depends entirely on the quality and completeness of player tracking data capture.
- If the assumed house edge for a game changes, the ADT calculation becomes instantly flawed.
Industry Benchmarks
For premium resort destinations targeting high-value tourists, an ADT exceeding $1,200 per player session is often the target for top-tier players. For standard slot players, benchmarks might hover around $150 to $250 daily. These benchmarks are vital because they anchor your comp strategy against what competitors are offering for similar levels of theoretical exposure.
How To Improve
- Increase the penetration rate of player tracking cards to cover more total gaming volume.
- Shift marketing spend toward player segments whose historical ADT aligns with your target profitability.
- Review and potentially adjust game mix to favor machines or tables with slightly higher house edges.
How To Calculate
You calculate ADT by multiplying the average amount wagered per decision by the number of decisions made during the tracked period, then applying the house edge percentage.
Example of Calculation
Take a table game player who averages a $75 bet and plays for 5 hours, making about 50 decisions per hour on Blackjack, which has a theoretical house edge of roughly 0.5%. Here’s the quick math: ADT = $75 x 50 x 5 x 0.005. This results in an ADT of $93.75 for that player’s session. If you give them $50 in free play, you are giving them comps worth about 53% of their expected loss.
Tips and Trics
- Track the ratio of actual GGR to ADT to spot variance spikes immediately.
- Segment ADT by the type of comp offered (e.g., room vs. free slot play).
- Ensure your player database clearly flags players whose ADT is below the $100 threshold.
- Review the assumed house edge figures quarterly, especially after software updates. I think this is defintely important.
KPI 4 : Non-Gaming Revenue Mix
Definition
The Non-Gaming Revenue Mix measures what percentage of your total income comes from sources other than direct wagering, like Hotel stays, Food & Beverage (F&B), and ticketed Events. This metric is crucial because it shows how diversified your income streams are away from the volatility of the casino floor. You should aim to keep this figure at 30% or higher monthly for a healthier business profile.
Advantages
- Reduces reliance on Gross Gaming Revenue (GGR) fluctuations.
- Non-gaming often carries lower regulatory overhead than gaming.
- Increases overall guest lifetime value by capturing more wallet share.
Disadvantages
- Ancillary operations usually have higher fixed operating costs.
- Requires specialized management expertise outside of core gaming.
- Hotel Occupancy Rate (HOR) can be highly sensitive to local tourism trends.
Industry Benchmarks
For integrated resorts, a healthy benchmark is often cited around 30%, though this varies based on geographic market saturation. Properties heavily focused on convention business might see this percentage climb higher, sometimes exceeding 40%. If your mix sits below 25%, you’re defintely too concentrated in gaming revenue.
How To Improve
- Tie hotel room rates directly to major event ticket sales.
- Create mandatory F&B minimums for high-tier gaming comps.
- Develop exclusive, high-margin retail experiences for resort guests.
How To Calculate
You calculate this by taking all revenue streams that aren't direct gaming income and dividing that by the total revenue generated that month. This gives you the percentage mix. Keep a close eye on this monthly.
Example of Calculation
Say your resort generated $339M in Total Revenue in 2026, and $100M of that came from Hotel, F&B, and Events. You plug those numbers in to see the diversification level.
Tips and Trics
- Review this metric on the first business day following month-end close.
- Ensure your Average Daily Theoretical (ADT) tracking informs comping decisions.
- If the mix is low, aggressively push high-margin entertainment packages.
- Track non-gaming revenue per occupied room night, not just total dollars.
KPI 5 : EBITDA Margin
Definition
EBITDA Margin shows operating profitability before interest, taxes, depreciation, and amortization (EBITDA). It measures how much operating cash flow you generate from every dollar of sales. You must review this metric monthly aiming to maintain the high initial margin, which is currently around 795%.
Advantages
- Allows easy comparison between businesses with different debt loads.
- It strips out non-cash charges like depreciation, focusing purely on operational cash generation.
- Serves as a strong proxy for near-term cash flow health before financing decisions.
Disadvantages
- It ignores capital expenditures (CapEx) needed to maintain physical assets like gaming floors.
- It can mask poor working capital management or rising interest expenses.
- It is not GAAP compliant, meaning external analysts may treat it skeptically.
Industry Benchmarks
For established casino resorts, a healthy EBITDA Margin typically falls between 25% and 35%, depending on the mix of gaming versus non-gaming revenue. Your current projection of 795% is an extreme outlier, suggesting either massive operational leverage or a very specific accounting treatment for revenue or costs. You must track this monthly to ensure you don't drift below that initial high mark.
How To Improve
- Aggressively manage the Labor Cost Percentage, which is currently $128M annually against revenue.
- Increase the Non-Gaming Revenue Mix toward the 30% goal to stabilize margins against gaming volatility.
- Optimize complimentary (comp) issuance based on Average Daily Theoretical (ADT) to protect GGR.
How To Calculate
To find the EBITDA Margin, you take the total EBITDA and divide it by Total Revenue, then multiply by 100 to get a percentage. This shows the operating efficiency before financing and tax effects hit the bottom line.
Example of Calculation
Using the projected 2026 figures, we calculate the margin by dividing the expected EBITDA by the Total Revenue. This calculation confirms the high profitability level you are targeting for that year.
Tips and Trics
- Track GGR daily; margin health is tied directly to daily win rates.
- Ensure depreciation schedules align with the useful life of new gaming equipment.
- Defintely review the assumptions driving the 795% target margin quarterly.
- Watch Hotel Occupancy Rate (HOR) impacts, as low occupancy raises the relative fixed cost burden.
KPI 6 : Labor Cost Percentage
Definition
Labor Cost Percentage shows what percentage of your total sales goes directly to paying your staff. You must review this metric monthly because staffing represents a significant operational overhead for a full-service resort. It’s your primary measure of staffing efficiency.
Advantages
- Quickly flags when staffing levels exceed revenue capacity.
- Helps you decide if new technology investment saves more than it costs.
- Directly impacts your bottom line, since labor is usually the largest variable cost.
Disadvantages
- It can be misleading if revenue drops due to external factors, not staffing issues.
- It doesn't differentiate between high-value, specialized labor and general support staff.
- It hides the impact of overtime usage, which can spike costs quickly.
Industry Benchmarks
For integrated hospitality and gaming venues, you should aim for this percentage to stay below 35%, though top-tier operations often push closer to 28% by maximizing gaming revenue density. If your Non-Gaming Revenue Mix is high, your labor percentage will naturally trend higher because F&B and hotel services require more hands-on staffing than pure gaming. You need to know your specific target.
How To Improve
- Tie staffing schedules directly to expected table utilization forecasts.
- Implement cross-training so hotel staff can assist during peak event nights.
- Review all non-gaming departments monthly for process streamlining opportunities.
How To Calculate
To find this ratio, take your total annual or monthly payroll expenses, including benefits and taxes, and divide that by your total revenue for the same period. This gives you a clear efficiency score.
Example of Calculation
Using the projected 2026 figures, if the annual base labor cost is $128M and projected Total Revenue is $339M, the calculation is straightforward. This gives us a baseline efficiency metric for the coming year.
Tips and Trics
- Ensure the $128M base cost includes all associated payroll taxes and benefits.
- Compare this metric against Gross Gaming Revenue (GGR) performance specifically.
- If the ratio spikes, immediately check the prior week's comp (complimentary) issuance levels.
- Set a strict internal threshold, say 38%, for mandatory executive review; defintely don't let it creep up unnoticed.
KPI 7 : Hotel Occupancy Rate (HOR)
Definition
Hotel Occupancy Rate (HOR) shows how much of your available hotel rooms are actually being used by guests. It’s a direct measure of asset utilization for your lodging component, which is a key part of the integrated resort experience. Monitoring this daily helps you set the right room rates and decide who gets complimentary stays.
Advantages
- Shows physical asset efficiency immediately.
- Directly impacts revenue management decisions.
- Helps control complimentary room costs.
Disadvantages
- Doesn't reflect room profitability (ADR is missing).
- High occupancy doesn't guarantee high margin.
- Can lead to over-discounting during slow periods.
Industry Benchmarks
For luxury resorts tied to gaming, top-tier performance often means sustained occupancy above 85%, especially mid-week. Benchmarks are crucial because low utilization means fixed hotel costs aren't being covered by room revenue. If you're below 70% consistently, you're leaving money on the table or your pricing is off.
How To Improve
- Tie room rates directly to gaming floor activity levels.
- Use dynamic pricing based on competitor weekend rates.
- Reduce complimentary room issuance when utilization dips below 90%.
How To Calculate
You calculate HOR by dividing the total number of rooms sold (Guest Nights) by the total number of rooms available across all days in the period. This metric is best reviewed daily or weekly because hotel pricing is highly perishable.
Example of Calculation
If your resort projects 150,000 Guest Nights for 2026, you need your total capacity to calculate the rate. Let's say your total available room nights for that year equal 180,000 rooms. Here’s the quick math to see utilization.
Tips and Trics
- Track HOR daily, not just monthly.
- Correlate low HOR with competitor pricing moves.
- Ensure comps are tied to player value (ADT).
- Review the impact of convention bookings on weekend HOR defintely.
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Frequently Asked Questions
The most critical KPIs are Gross Gaming Revenue (GGR), Win Per Unit (WPU), and EBITDA Margin, which starts high at roughly 795% in 2026 You should also track Gaming Taxes, which consume 100% of revenue, and the Non-Gaming Revenue Mix to ensure diversification;