Monthly Archives: March 2013

When is a High-Roller actually High Risk?

 

Bio Pic

Steve Karoul is a recognized casino consultant with 35 years of hands-on experience with the best casinos both within the United States and internationally. He is also an authority on all aspects of casino marketing. Steve has lived in numerous countries and has conducted casino marketing activities in well over 100 countries around the world.   He is an author, a lecturer and an educator who often injects his own hands on experiences and openly shares his ideas and thoughts with fellow industry executives. Telephone +(1-860) 536-1828 or [email protected] or see www.euroasiacasino.com

INTRODUCTION 

There are almost 600 casinos in the United States and several thousand around the world.  Every one of them probably has a different interpretation of what a high roller is.  It is an interesting and controversial subject that is all relative to each casinos VCL.  VCL is one of the many variable factors that can affect the way a casino would view their interpretation of a high roller.  In other words, one size doesn’t fit all when evaluating high rollers.  Therefore, I think is important to review VCL first and hopefully clear up some of the many misconceptions that are out there about high rollers and casinos. 

Do you know your casino’s VCL?  VCL stands for “Volatility Comfort Level”.  For that matter, do you know what your own personal Volatility Comfort Level is?  For example, if you went to a Roulette Table with a $1,000 bankroll, would you be comfortable betting $1000 or 1000 Pounds Sterling straight up on a number that pays 35 to 1 odds?  This represents high risk but high potential reward as well as a high VCL.   Or, on the other hand, would you be more comfortable betting only $10 on Black or Red which is an even money bet with minimal risk but also minimal potential reward or low VCL.   

Simply stated, the player’s need for risk-oriented betting parameters and the casino’s tolerance for risk in relation to potential reward is what VCL is all about for both the player and the casino.  It is one of the subtle influencing factors that can have a dramatic effect upon a player’s real or perceived value in a casino.  It can also be a competitive factor as casinos use betting limits as a means to attract and compete for players.  In terms of bottom line it can dramatically influence the casino’s profitability as well over the short and mid-term thereby potentially affecting cash flow, and stock prices.  From purely a selfish point of view issues directly or indirectly related to volatility can affect the job security for the casino executives having to make these day-to-day decisions.    Read More…

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