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Casino Accounting Principles

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Gross Gaming Revenue (GGR)

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GGR is the difference between the amount of money players wager minus the amount that they win. In casinos, it's crucial for calculating the profitability of gaming operations.

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Net Gaming Revenue (NGR)

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NGR is the gross gaming revenue minus operating expenses and taxes. In a casino, it represents the actual profitability from gaming after all costs are considered.

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Drop

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The drop refers to the amount of cash and net markers that are deposited in a gaming table's drop box. Casinos use this metric to measure the total amount of currency exchanged for chips at a table.

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Hold Percentage

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Hold percentage is the ratio of money won by the casino to the total amount of money dropped by the players. Casino management analyzes this to determine the profitability of a game.

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Win

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Win is the amount of money that the casino retains after all bets are paid out. For casino finance, this term quantifies the success of the gaming floor.

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Comp Points

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Comp points are benefits awarded to players based on their game play. Casino accountants track these to monitor promotional costs and player loyalty incentives.

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Marker

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A marker is a line of credit extended by a casino to a player. Accounting departments manage these transactions carefully to ensure creditworthiness and minimize defaults.

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Adjusted Gross Revenue (AGR)

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AGR is calculated by adjusting GGR for winnings paid out to players and other relevant expenses. It allows casino managers to evaluate the operational results of gaming activities.

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Casino Credit

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Casino Credit lets players borrow money from the casino to use for wagering. This financial method necessitates rigorous accounting to track payments and debts.

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Internal Audit

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An internal audit involves the assessment of a casino's financial processes and systems to ensure accuracy, compliance, and the detection of fraud or theft.

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Theoretical Win

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Theoretical win is the expected win from a game based on the odds and player activity. Casino accounting uses this to gauge the potential profitability from games offered.

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Revenue Audit

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A revenue audit involves examining the casino's revenue streams to ensure that they are recorded and reported accurately. This is vital for maintaining trust with stakeholders.

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Ticket-In, Ticket-Out (TITO)

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TITO systems issue a paper ticket with a barcode, representing the player's money, to be inserted into other machines or redeemed for cash. Casinos need stringent accounting processes for tracking these transactions.

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Cost of Goods Sold (COGS)

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In the context of a casino, COGS can include the cost of food and beverages, entertainment, and retail items sold. Careful accounting is essential to manage margins and profitability.

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Accrual Accounting

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Accrual accounting records revenues and expenses when they are incurred, not necessarily when cash is exchanged. Casinos use this to better match revenues with the period's expenses for accurate financial reporting.

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