Jai-alai profitability: Dania example Posted on September 17, 2017 at 11:43:34 AM by Tiger
First, let's see from where the receipts flow (we'll use 6 months of data, January-June, 2017). This example is, admittedly, oversimplified.
LIVE INTERTRACK TOTAL
HANDLE 1,455,618 3,020,145 4,475,763
RATE (approx) 25% 5%
TAKE 363,905 151,007 514,912
TAKE/PERF 2,011 834 2,845
Note that the off-site handle is twice the live, yet the value earned from live patrons far outweighs what comes from off site.
So, let's say they get $1 Million per year from the mutuels take. From that, they need to pay player salaries and boleto. That works out to about $30,000/player/year. Sounds roughly break even, so far.
There are many other costs, of course. Security, utilities, food service, etc., etc., etc., but since it's a multi-purpose venue (primarily casino), only a fraction of those operating costs are directly assignable to jai-alai.
I don't think you can say that jai-alai is a millstone weighing down the whole operation - more like it's an extra added attraction that nearly pulls its weight. And, we can anticipate handle to improve. Replies: