Expect monthly running costs for a Poker Room to start around $85,000 in Year 1 (2026), driven primarily by payroll and rent Your total fixed overhead, including $10,000 for rent and $56,917 for staff wages, totals roughly $79,000 before variable costs You must fund operations for at least 14 months to reach the February 2027 breakeven date This requires a strong working capital plan, especially since the business needs a minimum cash buffer of $424,000 to survive the initial growth phase This guide breaks down the seven crucial recurring expenses you need to model precisely to ensure long-term profitability
7 Operational Expenses to Run Poker Room
#
Operating Expense
Expense Category
Description
Min Monthly Amount
Max Monthly Amount
1
Staff Payroll
Labor
Payroll is the largest expense at $56,917 monthly in 2026, covering 13 FTEs including 5 Dealers and 25 Bar Servers.
$56,917
$56,917
2
Rent and Leasehold
Occupancy
Rent is a major fixed cost at $10,000 per month, requiring careful negotiation of lease terms and escalations.
$10,000
$10,000
3
Gaming Supplies (COGS)
COGS
Gaming supplies (chips, cards) and beverage ingredients total 45% of revenue, or about $3,424 monthly based on 2026 projections.
$3,424
$3,424
4
Utilities and Maintenance
Operating
Fixed utility costs ($3,000) plus maintenance ($1,500) total $4,500 monthly, requiring energy efficiency monitoring.
$4,500
$4,500
5
Licensing and Compliance
Regulatory
Mandatory Gaming Licenses cost $1,800 monthly, plus $2,200 for necessary insurance coverage.
$4,000
$4,000
6
Marketing and Promotions
Mixed
Fixed marketing spend is $2,000 monthly, plus 10% of revenue for promotions, totaling about $2,760 per month initially.
$2,760
$2,760
7
Payment Processing Fees
Transaction
Payment processing fees are a variable cost set at 25% of total revenue, averaging $1,902 per month in the first year.
$1,902
$1,902
Total
All Operating Expenses
$83,403
$83,403
What is the total monthly operating budget required to sustain the Poker Room for the first 12 months?
The total monthly cash operating budget required to sustain the Poker Room before generating revenue is $79,017, derived from fixed overhead and initial payroll; achieving break-even requires generating nearly $395,000 in monthly revenue to cover these cash costs given the high variable expense structure. If you're looking at how much to start the Poker Room business, remember that the initial cash requirement is distinct from the ongoing monthly burn rate; here's a look at the sustained monthly budget, which you can compare against the initial capital needed to start, detailed in How Much To Start Poker Room Business?
Monthly Cash Outlay
Fixed monthly costs are $22,100.
Initial payroll commitment is $56,917 per month.
Total fixed cash burn is $79,017 monthly.
You must cover these costs defintely before sales kick in.
Full Cost Picture
Variable costs are set at 80% of total revenue.
Non-cash depreciation is about $4,533 monthly.
This assumes straight-line depreciation on $272,000 CapEx.
Which cost categories represent the largest recurring expenses, and how can they be optimized?
Your biggest monthly burn is defintely payroll at $569k, making operational efficiency critical long before you worry about the $10k rent; understanding the initial capital needed helps frame this ongoing cost, see How Much To Start Poker Room Business?
Payroll Optimization
Calculate Full-Time Equivalent (FTE) per table.
Measure server efficiency per active shift hour.
Map staffing needs against projected game volume.
Reduce overtime by optimizing shift scheduling.
Real Estate Review
Analyze current lease termination clauses.
Negotiate rent abatement periods upfront.
Scout secondary locations with lower square footage costs.
Factor in local zoning for gaming establishments.
How much working capital or cash buffer is needed to cover costs until the business reaches positive cash flow?
The Poker Room needs financing to cover cumulative losses until February 2027, targeting a minimum cash buffer of $424,000 by December 2027 to support the 45-month payback timeline; understanding this runway is key to securing the right capital structure, which is why founders often look at resources like How Increase Poker Room Profitability?
Estimate Cumulative Loss
Calculate total negative cash flow until February 2027.
Map operating expenses against projected revenue ramp.
This deficit is the initial capital required for survival.
If onboarding takes 14+ days, churn risk rises defintely.
Financing the Runway
Target minimum cash reserve of $424,000 by December 2027.
The total funding ask covers losses plus this required buffer.
This covers the entire 45-month period until payback.
Determine equity dilution versus debt servicing costs now.
If actual revenue is 20% below forecast, how will the business cover fixed costs and maintain compliance?
If the Poker Room sees revenue drop 20% below forecast, you must immediately slash variable spending like marketing and promotions while treating mandatory compliance costs, like gaming licenses, as untouchable overhead. Defintely protect your ability to operate legally first. This rapid response buys time to fix the revenue gap, a key component of performance discussed in detail here: What Are The 5 KPI Metrics For Poker Room Business?
Immediate Variable Cost Reduction
Cut marketing spend by a hard $2,000 right now.
Reduce all promotional spending by 10% across the board.
These cuts are fast because they don't impact game quality.
Focus on increasing table turnover to recover lost promotion value.
Compliance and Staffing Levers
Gaming Licenses cost $1,800 per month; these are mandatory.
Do not touch license fees; non-compliance shuts the Poker Room down fast.
Establish clear trigger points for reducing full-time equivalents (FTEs).
If revenue stays below 80% of forecast for two weeks, start headcount review.
Key Takeaways
The initial monthly running cost for a new poker room is projected to average $85,000, primarily driven by fixed overhead expenses.
To survive the initial growth phase, operators must plan for a minimum working capital buffer of $424,000 to cover losses until the projected 14-month breakeven date.
Staff payroll, the largest recurring expense at $56,917 monthly, represents over 65% of the initial fixed overhead and requires strict FTE management.
Compliance costs, including mandatory Gaming Licenses ($1,800/month), are non-negotiable expenses that must be covered even if revenue falls below forecast.
Running Cost 1
: Staff Payroll
Payroll Dominates Costs
Payroll is your biggest headwind heading into 2026, hitting $56,917 monthly. This expense covers 13 FTEs, made up of key operational roles like 5 Dealers and 25 Bar Servers. Managing this labor load defines your path to profitability.
Staffing Breakdown
This $56,917 estimate is based on the required headcount for operations in 2026. You need 5 Dealers and 25 Bar Servers staffed across 13 FTEs. The inputs are total salary, benefits, and payroll taxes applied to these specific roles. It's a massive fixed cost component.
Total monthly payroll: $56,917 (2026)
Key roles: 5 Dealers, 25 Bar Servers
FTE count: 13
Control Labor Spend
Since payroll is your largest expense, efficiency here matters most. Avoid overstaffing during slow mid-week hours when cash games are light. Cross-train Bar Servers to assist with low-stakes table management when Dealers aren't fully utilized. If onboarding takes 14+ days, churn risk rises.
Schedule based on expected seat time.
Monitor overtime accruals closely.
Ensure compliance with wage laws.
Labor Risk Check
If your average fully-loaded hourly wage is $35, any increase of just $1 per hour across 13 FTEs adds $2,704 monthly to this already huge operating expense. This defintely pressures margins quickly.
Running Cost 2
: Rent and Leasehold
Fixed Rent Burden
Your rent commitment sets a high floor for monthly operations at $10,000. You must negotiate lease escalations aggressively because this fixed cost directly impacts your break-even volume before you even pay dealers.
Cost Inputs
This $10,000 covers the physical location for all cash games and tournaments. Know your base rate, lease term length, and scheduled annual increases. It's a core fixed cost that needs to be covered regardless of player volume. You need a solid, written agreemnet.
Base rent quote confirmation
Annual escalation clause review
Lease term length negotiation
Lease Optimization
Focus on minimizing the initial impact and controlling future growth of this expense. A multi-year lease locks in stability but demands careful review of escalation triggers. Don't just accept the first number they give you.
Push for rent abatement upfront.
Cap annual escalations below 3%.
Ensure tenant improvement allowances are maximized.
Escalation Risk
Ignoring the lease escalation clause means your $10,000 fixed cost grows automatically, eating into your contribution margin. Model the five-year impact of any percentage-based increase to see the real cost of commitment; it's more painful than you think.
Running Cost 3
: Gaming Supplies (COGS)
COGS Percentage
Your cost of goods sold (COGS) for gaming supplies and drinks is significant. Based on 2026 projections, these items account for 45% of total revenue. That translates to approximately $3,424 per month flowing directly out for chips, cards, and beverage ingredients. Controlling this percentage is key before you even hit scale.
Cost Breakdown Input
This $3,424 monthly estimate covers physical consumables. It includes poker chips, playing cards, and all beverage ingredients sold to players. This calculation uses the projected 2026 revenue figure, applying the 45% rate. It's a variable cost that scales directly with player volume and drink sales, unlike fixed payroll.
Inputs: Projected Revenue (2026)
Rate: 45% of sales
Components: Chips, Cards, Beverages
Manage Supply Spend
Managing this cost means focusing on drink sourcing and chip management. Avoid buying low-quality cards that require constant replacement, which spikes your variable spend. Negotiate bulk pricing with beverage distributors now, not later. If you can push the drink mix toward higher-margin items, the effective COGS percentage drops.
Benchmark beverage supplier costs now.
Track card durability metrics.
Demand volume discounts on chips.
Inventory Control
Watch the relationship between chip inventory and working capital closely. While chips are assets, buying too much too soon ties up cash needed for dealer salaries or rent deposits. You defintely need a system to track card lifespan versus replacement frequency to keep this 45% figure stable.
Running Cost 4
: Utilities and Maintenance
Fixed Overhead Hit
Utilities and maintenance set a baseline operating cost of $4,500 per month for the poker room. This figure is fixed, meaning it must be covered regardless of player volume or revenue generated that day. Since utilities make up two-thirds of this cost, controlling energy use is critical for profitability.
Cost Breakdown
This $4,500 covers essential building upkeep. Utilities include electricity for lighting, HVAC (heating, ventilation, air conditioning), and security systems, estimated at $3,000 monthly. Maintenance covers routine upkeep and unexpected repairs, budgeted at $1,500 monthly. You need quotes for HVAC servicing and historical usage data for the leased space to validate this baseline.
Utilities: $3,000 fixed base.
Maintenance: $1,500 for upkeep.
Total fixed overhead impact.
Control Energy Spend
Managing this cost centers on the $3,000 utility spend. Install smart metering to track energy consumption by zone, like the main gaming floor versus administrative offices. A common mistake is ignoring HVAC settings during off-hours. Aim to reduce utility spend by 5% to 10% through better scheduling and LED retrofits. It's a quick win, defintely.
Monitor HVAC schedules closely.
Use smart meters for tracking.
Target a 5% reduction.
Impact on Break-Even
Because this $4,500 is fixed, it increases your break-even threshold significantly before staff payroll hits. Focus monitoring efforts on the $3,000 utility component first, as maintenance costs are harder to influence quickly. High energy use directly eats into contribution margin from seat rentals.
Running Cost 5
: Licensing and Compliance
Compliance Cost Floor
Compliance is a fixed hurdle requiring $4,000 monthly spend just to operate legally. This covers mandatory gaming licenses and required insurance coverage, setting your baseline operational cost floor immediately.
Cost Breakdown
This $4,000 monthly compliance spend is entirely fixed. The $1,800 gaming license fee ensures regulatory approval, while $2,200 secures necessary insurance coverage for player liability. This cost hits your books before the first hand is dealt.
License fee: $1,800/month
Insurance coverage: $2,200/month
Total fixed compliance: $4,000/month
Managing Insurance
You can't negotiate the mandatory license fee, but insurance rates are negotiable. Shop your liability quotes aggressively across three different carriers before committing to a policy for the venue. Don't skimp on coverage; a single incident could defintely bankrupt the business.
Shop insurance quotes aggressively
Look for multi-year policy discounts
Never self-insure compliance risks
Break-Even Impact
These compliance costs are foundational fixed overhead, sitting right above your $10,000 rent. You must cover this $4,000 monthly outlay from gross profit before paying staff or covering utilities. It's a hard cost floor.
Running Cost 6
: Marketing and Promotions
Budget Setup
Your initial marketing outlay blends fixed costs with performance incentives. Expect fixed marketing spend to hit $2,000 monthly. Add 10% of revenue for promotions, pushing the starting total near $2,760 per month. This spend drives initial player acquisition.
Cost Inputs
This cost covers baseline advertising efforts and promotional incentives tied directly to player spending. To calculate the variable portion, you need projected monthly revenue figures. The fixed $2,000 covers ongoing brand presence, like local ads or website maintenance.
Fixed spend: $2,000 monthly.
Variable rate: 10% of revenue.
Initial total: ~$2,760/month.
Promo Management
Since 10% of revenue funds promotions, focus on high-conversion channels first. Avoid spreading that budget too thin across too many platforms. If revenue stalls, this variable cost shrinks automatically, but the $2,000 fixed cost remains. Watch your customer acquisition cost (CAC) closely.
Tie promotions to high-margin play.
Test small, measure everything fast.
Keep fixed spend tight until revenue scales.
Context Check
Compared to payroll at $56,917 monthly, marketing is a small lever initially. However, if you spend $27,600 in revenue to generate that initial $2,760 marketing cost, your return is poor. You defintely need clear tracking on what drives play.
Running Cost 7
: Payment Processing Fees
Processing Cost Rate
Processing fees are a straight 25% slice of all revenue collected through electronic means. For the first year, expect this variable expense to average $1,902 monthly. Since revenue comes from seat rentals and tournament entries, every digital transaction hits this line item. It's a cost tied directly to sales velocity.
Cost Inputs
You need total projected revenue to nail this estimate. This 25% rate covers interchange fees and the processor's markup for handling card payments for seat fees and tournament buy-ins. It's a direct variable cost, unlike fixed rent. Honestly, this rate seems high for standard processing.
Total electronic revenue
Processor fee rate (25%)
Year 1 average: $1,902
Fee Reduction Tactics
A 25% rate is high; most standard merchant rates are closer to 2% to 3.5%. You must negotiate hard after proving volume, but for now, encourage cash payments for high-value seat rentals to bypass this fee entirely. Defintely focus on cash flow management here.
Negotiate after volume proves
Push cash for large buy-ins
Benchmark against 2% rates
Variable Drag Risk
Since this is 25% of revenue, it's a major drag when sales slow down. If you project $10,000 in revenue, $2,500 vanishes here instantly, which heavily impacts your contribution margin. Watch your mix of cash versus card payments closely, especially when F&B sales are factored in.
