Question

​Recently, a casino issued a press release announcing that a cocktail waitress won the​ world's largest slot jackpotover ​$30,000,000. She said she had played less than​ $50 in the machine when the jackpot hit. The top jackpot for this type of slot machine builds from a base amount of​ $7 million and can be won with a​ 3-coin ($3) bet. ​a) How can the casino afford to give away millions of dollars on a​ $3 bet? ​b) Why did the casino issue a press​ release? Wouldn't most businesses want to keep such a huge loss​ quiet?

Answer 1

Casino and Press Release

a) This casino can afford to give away $30 million on a $3 bet since it has garnered enough from a base amount of $7 million severally before the jackpot is won. In my own calculations, for two weeks, the casino could have gathered more than $140 million. After all, jackpots are not won on a daily basis, but casinos obtain millions in bet proceeds. So for the waitress winning $30 million, it is simply payback time for the casino.

b) The press release announcing the jackpot is an avenue for cheap publicity and media authentication of the business. Casinos are not allowed to advert their services. A way around this ban is to issue press releases when a jackpot is won in order to publicize their services. Moreover, that a waitress won the jackpot of $30 million is not even a business loss. It is simply paying back some fraction of the proceeds.

Explanation:

With the statistical advantages enjoyed by casinos, they surely make more money than the betters. Casino is a gambling game of chance, where the advantage is skewed in favor of casino businesses who gather so much in bets from their patrons.