The answer is simple - it's money. It may sound trivial and cliché. Nevertheless, it's true. Few people think about it when buying a share in the gaming business or an entire establishment. The stereotype suggests that a casino is like a beautiful oil well, just press a button, and oil, or rather "money," will gush out.
This is what ruins many investors who invest in the gambling business. However, it applies not only to investors but also to management. Very often, people fail to understand a simple thing - an empty cashbox is a ticket to nowhere. Managers, when considering a job offer, often neglect this aspect for the same reason mentioned above. They look at the location of the establishment, the quality of the renovation, the amount of equipment, etc., and the cashbox is taken for granted, but no, not always, unfortunately. When the establishment closes, awareness kicks in. One regrets the time spent on a project that was doomed to failure from the start.

I present to you a story, with fictional names and characters, but many will recognize familiar traits in it.
So, a group of investors consisting of three people made a fateful decision to open a small casino. The main parameters of the establishment were as follows: an area of 700 square meters, 70 slot machines, 6 gaming tables (2 roulette and 4 card tables), a bar with hookahs but no restaurant. It had a quality video surveillance system and a basic-level sound system (speakers throughout the premises with a simple audio controller). A stage, professional acoustics, and lighting were not provided.
Experienced individuals, long-time players in the business, made rough estimates that the initial investment would be around $1.5 million. This cost included equipment purchases, premises renovation, and an initial bankroll. They shook hands and launched the project. It should be mentioned that the investors had an agreement regarding financing. Each investor was ready to allocate a maximum of $500,000 to the project.
The investors hired a general manager who was enthusiastic about the project. He carefully studied every line of the business plan and started devising a development strategy for the establishment.
The plan was roughly as follows: $1,200,000 would be spent on expenses related to the casino opening, and $300,000 would be allocated as a bankroll. The projected monthly operating expenses were estimated at $200,000. Sounds complicated, doesn't it? Let's describe a few scenarios; they occurred at different times and in different places, but they are all relevant.

Scenario One: The first month passed, and the casino made $100,000. With operating expenses of $200,000, the financial result was a negative $100,000. There was $200,000 left in the cash register. Two more months went by, and the cash register was empty. The investors couldn't provide financial assistance, and the decision to sell/close the establishment was made. This scenario is quite common. Yes, a casino is a highly profitable business with fast payback. However, regardless, there is a period of time dedicated to promotion. The casino needs to make itself known, players need to learn about it, marketing campaigns need to be conducted, and managers need to reach out to and attract guests. Time is money. Therefore, there should be enough money in the cashbox to get through the project's promotion period. Ideally, it would be 12 x monthly expenses + bankroll x 3, where 12 and 3 represent the number of months, and the bankroll depends on the stakes in the establishment. This amount doesn't necessarily have to be physically present in the cash register, but the investors should have the means to replenish it promptly. One should consider that the expected payback period for such a project is five years. With a high degree of probability, the first year will end with a negative result. Time is needed to promote the project, attract and retain guests. Of course, there can be cases where profits start pouring in from day one, but it's better to prepare for the worst. Therefore, the operating expenses for all 12 months should be accounted for. After one year, one can confidently speak about the project's profitability. If after 12 months the situation stabilizes and there is steady growth, then everything is being done correctly. With this investment volume, the profit should amount to $100,000 to $200,000 per month on average throughout the year. Taking a negative forecast, multiplying $100,000 by 48 months gives the payback of the project in five years.
Scenario Two: Understanding the lack of financial stability prompts the management to make decisions in line with this state. The general manager, knowing that there is no help to expect, will be extremely frugal and cut costs wherever possible. Additionally, they won't spend money on development, which is a fatal mistake. How will guests learn about the new casino? Why should they come? What sets it apart from others? These questions are answered by marketing, and it solves these tasks. Nothing is free. Therefore, in this scenario, the casino will have a sluggish start. Its income will hover around zero. Sooner or later, a critical mass of players will accumulate, and the business will pick up, if not for Murphy's Law. If something can go wrong, it will. A player or a group of players will come and win big money. This will undermine the financial model. Management will tighten the belt even further. Players, seeing that the establishment is experiencing financial difficulties, will start migrating to competitors. Ultimately, the collapse is just a matter of time.
Scenario Three: The general manager was misled about the financial condition of the founders, or he lacked the competence to objectively evaluate the company's financial situation. The management went all out! Champagne flows like a river, pop stars are invited, large sums of money and valuable prizes are given away! Every iron proclaims that the new casino awaits affluent guests! Everything is correct, but suddenly, the money runs out, and more is needed. The outcome is evident.

Thus, financial planning before opening a casino is no less important than before opening a restaurant or a car manufacturing plant. There must be a financial cushion, and all participants must understand that the first profit will not come as quickly as desired. One should not be deluded into thinking that money will pour in tomorrow. Yes, such examples exist, but they are few. It's better to prepare for a year of patience and expenditure. Based on practice, if a casino hasn't achieved sustainable growth within a year, it means there are serious conceptual problems. And that is a topic for another discussion.