Will a bank give a loan to set up a casino?

Horace

You have to be over 18 for one thing to even set foot in a casino.
If you have no money, then no bank is going to lend money and certainly not for a casino. So to raise funds you are going have to work or join the m a f i a, or get a job working for a casino. A casino will need a licence from the Gambling & Lotteries Commission, they need to have public liability insurance, employ lots of staff, have various tables (which cost), they need a secure area because they will have lots of cash.

Instead of dreaming about different schemes that you may want to do..why not a) think of something you are passionate about because no business is going to work unless you are doing something that you love, b) find different ways of making money i.e. get a job in the industry that you want to work in (even offer your services for free), or you could concentrate on your school work and get good grades

Self employment is no walk in the park - you work long hours - certainly more than a 37hr week - more like 60-80hrs or more, you don't get sick pay or holiday pay, you often work for less than minimum wage. You have to do everything when you start out e.g. do your own office work, sell your product or service, market your business, etc..it isnt easy and certainly not easy when you have no money, you have pay your own tax and national insurance as well, and any insurances that you have to have i.e.public liability etc.

If you are passionate about it then you will be doing it already and not asking lots of questions about hairbrained ideas that you have. Think about making your ideas work and how you are going to do it. It would be a great project for your school holidays - remember it is free to use public libraries and they don't close for the summer. Ask for the business section and go and sit there and read.

coupleuk

Savvy_Sue wrote:

And as always, getting experience in the chosen business is a good idea. So, look at getting work in a casino and learn what's involved, make your mistakes while someone else is paying, or learn not to make them ...

Sue,

When warranted, your positive suggestions have to be commended BUT there are times when people need to be told very bluntly that they are are living on another planet (rather apt given the username of the OP in this thread).

It is of course always a good idea to work in the industry you would like to develop as a business, but no Casino is going to take on a new member of staff to learn the ins and outs of actually operating one. It would take the OP perhaps 10 years to get to that level - and the wage he'd be earning STILL wouldn't give him the required funds to get thru the front doors of the bank.

PLEASE don't waste your time giving people even the slightest glimmer of hope when it is all too clear that their idea is a non starter from the off. Keep your encouragement for those who come onto the forum with at least some research having been done.

Tell them the truth and be blunt about it - IF (but in this case there is no IF) they are that determined and have managed to scrape together the 50%+ needed (70%+ for non freehold/equity business) to approach a bank THEN offer encouragement.

My post isn't knocking you Sue (well I guess it is a little) - but people need to be REALISTIC.

Paul

pitkin2020

I've always wanted to be an astronaut, I don't have any skills or money but the bank should lend me a couple of million to buy a rocket surely, what do you think??

thegirlintheattic

A casino is a big undertaking for someone with no experience!

If you still want to go ahead, I'd look at private investors but I doubt they would touch you as you have no experience.

paddyrg

Mind you, casinos do need croupiers, and these are usually trained in-house. Ask at Gala or whoever for an application form (you will need good referees) and in the meantime practice with cards, not playing them, but just so your hands are natural with them. 18+, unsurprisingly. Then you grow with experience and the company, and in 10+ years you may be managing a branch. If you are prepared to move around the country. Needless to say, you need excellent maths, observation, and customer service skills.

I will give you the #1 gambling tip you can get - always play with somebody else's money.

spaceboyted

The world is full of people who say you CAN'T do this...you must be realistic. While there is some good advice, I'm not intending to set up a casino tomorrow. Of course I need the experience. Perhaps I need to rephrase my questions a bit better because I assume that people think I wouldn't be naive enough to think I could run a casino tomorrow if I had the money. Obviously I am aware it would be a disaster if I did. But I do think it could be a business venture in the far future. I just wanted a response from someone a lot older than me who has been in a situation where they are able to get a loan of such magnitude and under what circumstances led them to being able to do so. As for my other crazy posts, I was just looking for feedback, however crazy they seemed, I didn't expect them all to work...that is what creative thinking is all about. Instead I get replies saying go back to school blah blah. You guys have to realize that this country would get no where without people thinking outside the box or aspiring to own a business that faces high barriers to entry. I recognize that I have to start small and that is why I'm developing a social media business that harnesses Facebook, which is very cheap to start out and I think it has potential if I am able to network properly. Thanks to the people that responded to my posts with constructive criticism and actually answered my questions rather than those CAN't do it people.

Regards

Ted

s_b

i think the odds are against the bank lending on this idea
however pitkin2020 has a brilliant idea and im going to see my bank manager pronto in the morning

pitkin2020

s_b wrote: »

i think the odds are against the bank lending on this idea
however pitkin2020 has a brilliant idea and im going to see my bank manager pronto in the morning

Looking for private investors aswell, £1 million for a 0.05% share, sounds like a good deal to me!!

Spaceboyted, its ok to have these ideas but why the need to bring them all to this forum for advice on them when in reality even you can see that most are non starters. We all at one time or another have thought of wanting to start a huge business that will no doubt make loads of money, unfortunetly you need capital. Without the capital why would a bank put their (even though its ours) money into someone who isn't committed enough to the project to put their own money in.

spaceboyted

pitkin2020 wrote: »

Spaceboyted, its ok to have these ideas but why the need to bring them all to this forum for advice on them when in reality even you can see that most are non starters. We all at one time or another have thought of wanting to start a huge business that will no doubt make loads of money, unfortunetly you need capital. Without the capital why would a bank put their (even though its ours) money into someone who isn't committed enough to the project to put their own money in.

Like I said before, it was foolish to state my situation in the question as it would seem I was hoping to get a loan right now. That was my fault. What I really wanted was advice from those who have successfully built themselves up to the stage where they were in a position to get such a loan. Also I really wanted to know if banks do lend to casino start-ups because of there nature.

pitkin2020

Banks will lend to anyone (if its a legal business obviously). BUT and here is the kicker you need a good plan and they need to see how they will get their money back. Now lets say the casino is to buy is 250K, another 200k to fit it out and 50k for advertising/staff etc so you need 500k to start it. You toddle down to the bank show them your plan and tell them you need 500K. How will they get their money back if it flops?? The building would most deffo be used as security but is only worth 250k, the fittings cost 200k but you would be lucky to get half of that when they come to auction it off. The 50k used for staff/advertising could never be taken back so straight away the bank is at a loss. By you not putting any cash into the business you have nothing to lose if it fails so again its only the bank that looses. At the end of the day the banks have to way up what becomes a loan that can be repaid or what actually becomes a gamble.