Startup Costs to Open a Casino Hotel: $37 Million CAPEX

Sustaining Capital Buffer

• Working capital must cover operating expenses before revenue stabilizes.
• This buffer accounts for the ramp-up period where occupancy and table utilization are low.
• You need enough cash to cover payroll and utilities for defintely six months post-opening.
• If initial marketing spend is high, the required buffer grows proportionally.

Massive Initial Capital Needs

• Construction costs are the primary outlay for the integrated resort.
• Gaming equipment accounts for a major part of the $37 million fixed assets.
• This capital must be secured before operations can defintely start.
• High fixed costs mean operating leverage is extreme; volume is essential for success.

Required Runway Capital

• The minimum necessary cash reserve is set at $301,000,000.
• This amount must sustain losses through the July 2026 target date.
• Runway duration depends entirely on achieving projected ADR and occupancy.
• If ramp-up is slower, this required buffer will defintely need adjustment.

Equity Hurdle Rates

• Equity investors in development projects expect hurdle rates often exceeding 15% IRR.
• A 3% return barely beats low-risk instruments like short-term Treasuries.
• The risk of construction overruns or permitting delays is substantial here.
• Equity takes the first loss, so the potential reward must justify that exposure.

Managing Equipment Spend

You can't cut corners on compliance tech, but negotiating bulk purchase discounts on slot units helps. Consider leasing high-cost, low-utilization equipment initially, though this shifts costs to OpEx. A common mistake is underestimating integration costs for the monitoring system; get fixed-price quotes for installation. This is defintely a place where scale matters.

Cost Inputs

This $8 million covers all Furniture, Fixtures, and Equipment (FF&E) for the guest areas. The estimate uses a benchmark of $20,000 per room ($8,000,000 / 400 units). You need firm quotes now to lock in pricing before inflation hits the 2026 delivery window.

• Units: 400 rooms
• Total Budget: $8,000,000
• Unit Cost: $20,000

Managing System Spend

Infrastructure spending is tough to cut without risking future failure or fines. The main lever here is timing the procurement to avoid peak contractor demand, especially near the August 2026 deadline. Don't skimp on redundancy for critical systems; cheap fixes later mean emergency shutdowns during peak gaming hours.

• Phase installation timeline.
• Negotiate bulk material pricing.
• Avoid rush fees for permitting.

Estimating F&B Assets

This $3 million covers high-capacity commercial appliances, specialized bar systems, and furniture for all dining areas. You must secure binding quotes from multiple hospitality suppliers to validate this estimate. This cost is critical before interior construction completion, linking directly to the Hotel Room Furnishings budget.

• Kitchen appliances (ovens, refrigeration).
• Dining room and bar seating.
• Vendor quotes required for accuracy.

Controlling Pre-Launch Payroll

You can manage this burn rate by timing hires precisely against construction milestones. Paying full salary before permits clear adds unnecessary risk. Still, you need these leaders early to manage vendor contracts.

• Hire the GM six months out; Ops Director, four months out.
• Negotiate a 20% lower base salary during pre-opening.
• Tie 50% of the salary component to opening compliance.

Estimate Licensing Capital

This covers all state and local gaming licenses, application fees, and mandatory compliance audits before opening. You need firm quotes for these regulatory applications well before the June 2026 target launch. Don't forget the costs tied to the $15 million in gaming equipment needing approval. It's defintely a CapEx item.

• Get multi-jurisdictional fee schedules
• Factor in legal review time
• Include audit preparation costs

Managing the Cash Burn

You can reduce reliance on this cash buffer by accelerating revenue recognition or optimizing CapEx payments. Negotiate longer payment terms on the $8,000,000 for hotel furnishings, pushing payments past the initial ramp-up period. Also, secure deposits for corporate events now. Still, this reserve is high because of the scale of infrastructure.

• Tie vendor payments to operational milestones.
• Pre-sell event space aggressively now.
• Ensure HVAC upgrades finish by August 2026 deadline.