Tuesday, June 02, 2009

Making the Video Poker numbers work..

I am having a hard time getting to the numbers the state is saying it can take in...

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Number of Machines 100,000 [1]People over 18 per machine in the state87

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Average bet in dollars0.75Man hours spent playing video poker per day1,200,000

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Average bets per hour [2]30

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Operating hours per day [3]12

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Gross Amount Bet Per Day$27,000,000

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Yearly Amount Bet $9,855,000,000Amount Bet Per Person Over 18 [4]$1,133

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Time spent per person playing per year [5]50.34 [6]

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Payout % Less than 1 0.92

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Net Gross Revenue788,400,000.00

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State Tax Rate on Revenue0.3

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State Revenue236,520,000
[1] Number of Machines in use


[2] Number of bets placed on a machine per hour

[3] hours each machine is in operation and being bet at the average bet rate and average bet listed above

[4] 8.7 Million People over 18 in Illinois

[5] Calculated by the average bet and average bets per hour

[6] In hours

I have done a google spreadsheet here.

Assuming the tax rate is 30% on the net (earnings after payouts). To get to 236 Million a year of revenue there would have to be 100,000 machines (one for every 87 people over 18) being played with an average bet of $0.75 30 times an hour for 12 hours.

Or another way to think of it.

Every person over 18 would have to bet about $1,100 a year. At the average rate of betting listed above each person over 18 would have to spend 50 hours a year playing video poker.

Follow the link to see the sheet, if you want to edit it, let me know.

OneMan

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