C arl Icahn stated that his loss on the investment in the Taj Mahal can be approximately rounded up to a mammoth one hundred million dollars. If this is not sufficient reason to shut show, what is?
Now, Carl is an activist hedge fund investor. He is not new to the game. He is not unaware of how the dice is to be rolled. But even he could not have seen the issues or predicted them that would come and hurt the assets that have Trump’s name written all over it. Find out more Casino Heroes
It is very vital for the house to win. Else it simply cannot exist. The games in the venue are designed such that the house is preserved at all times. This is not a charity place. There is no guarantee that the gamblers will walk out happy. There are thousands of bets placed in the casino. They are all designed such that the house always wins. The way it works, in the short run there might be small losses for the casino, but in the long run, the gamblers always give the casino a small percentage more than what they make from it.
One weekend in the money house might make you rich, but if you go every weekend, you might barely be able to break even. There are times of course when the punter can win against the house. This can be called as ‘short term variance’. In the long run, the casino is guaranteed to win more than the players that bet on it. This can be attributed to the law of large numbers. The games in the casino have been designed such that the house will always have an edge in their favour.
The odds always look good in their books. This, of course, varies from one game to another. Statistics show that in roulette, the casino has a 52% upper hand over the gambler. In blackjack, it is 51%. The poker machine gives it a higher edge of 60%. The percentage might seem like a very small and mediocre number. But think bigger picture. The casino will make much more than all the players because of the ‘law of large numbers theory’.
Whatever you see in the casino has been paid for by this money. From the furniture to entertainment to the free drinks, everything has been paid for by the money that the casino makes from the players. The fact of the matter is that the casino is gambling along with the players and the gamblers. The casino is taking just as much risk as the others. There comes a point when the casino also stops making profits to keep it going. Hence they do have to shut shop. Is there a way to avoid closing this casino? Carl could make it work, it is believed. For this to happen, the former patrons of Trump in the city are needed. Time will tell.