More Vegas Casinos Are Offering Cheap Gambling, but the Math Shows It Won’t Last Everywhere

^{A $5 blackjack table at The Plaza, one of the downtown casinos still offering low-limit table games. (Photo: courtesy of The Plaza)}

LAS VEGAS -- As visitation continues to fall compared with last year, casinos in Las Vegas are appealing to customers through two strategies: cheap table games and promotional deals on food and beverage.

In September, the LVCVA coordinated a citywide sale to offer hotel room deals to incentivize visitation. While some deals boosted room bookings, it didn’t necessarily solve the issue of tourists spending less. Meanwhile, the off-Strip casinos are leaning into affordability with $5 blackjack, budget-friendly meals and cheap drinks to bring tourists and locals to their respective properties. 

Where To Find Craps and Blackjack For $5 Or Less

Most of Las Vegas’s cheapest table games are located off the Strip and in downtown, though a few properties on the Strip are testing them out too.

The Rio Hotel and Casino, located just five minutes away from Caesars Palace and Bellagio, has managed to position itself as a massive value destination. The casino offers $3 craps daily from 8 a.m. to 3 p.m, but the minimum can go up to $5 during the week or $15 during busy periods such as weekend nights. The Palms is right across the street and also deals $5 craps and blackjack every day.

On the east side of the Strip, Ellis Island continues to offer $5 table games and its usual slew of promotions, including its famous $10 steak dinner. Farther south from the action on the Strip is South Point, which offers $5 craps and blackjack along with nightly dinner deals for under $10.

When it comes to Downtown Las Vegas, The Plaza and Downtown Grand offer $5 blackjack, craps, and roulette. You’ll even find $1 blackjack at certain tables at the Downtown Grand -- one of the lowest table minimums in all of Las Vegas.

Even the Strip is getting in on the low-roller action. Excalibur is the only MGM Resorts property offering $5 blackjack games, but don’t expect to see this at all MGM casinos. The OYO also has a singular $1 blackjack table on its casino floor.

$10 Table Games Are Barely Profitable at Best

Nothing is stopping every casino from rolling out cheap table games, but it doesn’t make financial sense for every property. While numerous casinos offer $5 blackjack, they can barely get by offering a $10 game because the low-limit table games are barely profitable by themselves. In some cases, they’re not profitable at all.

The Strip operates on a different playing field where luxury is the norm and consequently comes with a higher operating cost. Gambling revenue on the Strip can hinge on a handful of high-roller baccarat players each month, which was the case in July and August. A $10 table full of players at a value property simply can’t swing the same amount of money as one high-roller at a Strip casino.

On the other hand, many off-strip casinos such as Ellis Island and South Point are value properties where everything from hotel rooms to dining is affordable. That’s their business model, and low-limit gambling fits right into that. This combination depends on loyal customers and good volume, as there’s rarely a day when either casino looks empty. 

The Math Behind the Low Limit Games

While cheap gambling might fill seats, it’s not always financially prudent for casinos. Math makes my head hurt, so here’s an estimate using round numbers so it’s easy to understand:

• The number of hands dealt in blackjack ranges from about 200 for a single player to 60 for a full table, so we’ll call the average 100 hands per hour.
• If we estimated that the average house edge for the casino is 1% on $10 bets, the casino will earn $10 from each player every hour before expenses.
• If a table is full for the entire hour, the casino will gross $60 for that hour.
• According to Indeed.com, Las Vegas dealers are paid between $12 and $23 per hour before tips.

If a casino is dealing $10 blackjack to a full table, it will make only $50 or less before expenses. In addition to paying the dealer, casinos have to pay for comp drinks, pit bosses, security, and game expenses such as chips and cards, as well as back-of-house costs like accounting, rent, and human resources. Once other costs are factored in, the casino can barely profit from offering that $10 game.

The low table game model can only really work in smaller properties that operate holistically, and the revenue across the departments like dining, the hotel, and entertainment can offset gambling margins.

The economics of cheap gambling, meals, and hotel rooms may not make sense for all casinos. When events like Formula One or New Year’s Eve bring affluent guests to town, expect those deals to disappear for the time being.  For the average tourist though, enjoy the deals while you can and remember where the value is when prices rise in the most in-demand areas of Las Vegas.