Compact Casinos and Their Appeal to the Gambling Community

Land-based solutions
Updated 12 november 2024

Experts of the Online Casino Market studio are going to talk about the features and advantages of launching a mini entertainment location. We will also explain why this format is gaining popularity and which jurisdictions it is most common in.

About the Concept

Compact casino: general info

These are small clubs where people can play card games and place bets in their favourite slots. Among the equipment used, it is worth highlighting bingo machines, lottery terminals, consoles, and set-top boxes. The interior filling of the halls depends on the legislation of the chosen jurisdiction and the audience’s preferences.

Compact gaming rooms are often contrasted with large casino complexes. The former, as a rule, operate autonomously and occupy a small area, while the latter are part of huge entertainment centres.

Large entertainment locations can also have:

  • dedicated lounge areas;
  • recreation rooms;
  • bars with a large selection of drinks;
  • a considerable number of rooms.

How Mini Casinos Work in Different Countries

Mini-casino: key features

It is believed that the first smaller gaming venues appeared in Great Britain and Ireland in the 18th century. They immediately attracted the attention of the local public. Visitors met here after their shifts at factories, drank beer, and placed bets on the results of horse races and, a little later, on the outcome of card draws.

Over time, the activity of compact casinos began to be regulated. The government combined such facilities into a separate class and obliged their owners to obtain permits.

United Kingdom

In accordance with the Gambling Act of 2005, there are 3 groups of land-based entertainment locations in the UK:

  • small;
  • large;
  • “converted”.

A separate licence is provided for each type of establishment.

Land-based smaller venues have the following characteristics:

  • total area up to 1,500 sq. m;
  • the size of ​​gambling halls is at least 500 sq. m;
  • placement of slot machines in categories B, C, and D;
  • the total number of terminals is no more than 80 (no more than 20 for card tables).

The certification process consists of 2 stages:

  • filing an application along with the requested documents;
  • passing of an interview with key persons.

The opening of an offline gambling hall must be approved by local authorities. They control the placement of advertisement signs, conduct an expert evaluation of the premises and much more.

The government plans to make some changes to the work of compact venues, which will include:

  • lifting the ban on using debit cards in slot machines;
  • changing the 80/20 ratio that manages slots with high and low stakes;
  • increasing licensing fees by 15%.

Today, such locations are in great demand in the UK. You can visit such establishments in Yorkshire, the Humber, the East Midlands, and other regions.

USA

In America, compact gaming venues are associated with Indian casinos. The first such facility was opened in 1979 in Florida by the Seminoles.

In 1988, the IGRA was passed. The document defined the licensing rules, requirements for premises, and a list of available entertainment for money.

The legislative act divided gambling into 3 groups:

  1. Class 1. These are traditional tribal and social games with minimal prizes.
  2. Class 2. This category includes bingo and cards in which players bet against each other. Regulatory authority for these 2 groups belongs to Native Americans.
  3. Class 3. These are all other casino solutions: slots, craps, roulette, blackjack, and poker. The government proposes comprehensive management at the local, state, and federal levels.

At the beginning of this year, there were more than 500 compact gaming venues in 29 US states. California has the most tribal casinos, followed by Washington, Arizona, Oklahoma, Wisconsin, Michigan, and New Mexico.

Most establishments of this type are small bingo and card game facilities and, less often, Class 3 slots. However, there are exceptions, such as WinStar World Casino in Oklahoma or Foxwoods Resort Casino in Connecticut. Both brands are among the Top 20 in the United States but are owned by indigenous tribal people.

They can take advantage of tax breaks and incentives. The fiscal burden, in this case, does not exceed 20%. The proceeds are redirected to local budgets, with subsequent targeted use for infrastructure development and support for schools or law enforcement agencies on reservations.

Romania

The country is distinguished by its loyal attitude to entertainment for money. All types of gambling are permitted here, including the operation of smaller land-based casinos.

Compact venues work on the same principle as large complexes. Entrepreneurs must obtain a Class 1 permit, confirm a bank guarantee, and undergo equipment certification.

The following licensing fees apply in the state:

  • €100 — for one video lottery terminal installed in the hall;
  • €1,500 — for a slot machine;
  • €4,000 — for a card table (baccarat, blackjack) and a roulette wheel;
  • €5,000 — for a poker establishment;
  • €5,000 — for organising bingo.

One of the peculiarities of the Romanian market is the ban on opening compact gaming venues in towns with fewer than 15,000 residents. Thus, the government wants to move mini-casinos from remote provinces to more densely populated regions.

Owners of small locations can advertise them but with some restrictions. For example, the size of billboards cannot exceed 35 square metres. Placing them near schools, children's complexes, clinics, or hospitals is prohibited.

Why Compact Gaming Venues are Gaining Popularity

The main advantages of the solution:

  1. Optimisation of start-up costs. Launching a mini-casino is easier and cheaper than opening a large hall. Operators save money on renting premises, purchasing equipment, and installing video surveillance systems. If entrepreneurs do not initially have a large initial budget, then a compact facility is an excellent option.
  2. Simple licensing. In this case, permits are obtained under the accelerated procedure. The requirements for applicants are not as strict as for large brands, and the price of a certificate is much lower.
  3. Cost-effective management. Administering a small hall takes less time and resources. Businessmen only need to hire several managers who will accompany visitors. For effective work, certified software can be integrated. The program will simplify the verification of guests and speed up payments.
  4. Support from the state. It is expressed in tax breaks and incentives, access to credit funds, simplified project launch, and reduced regulatory pressure. The state benefits from compact gaming venues due to the accuracy of a budget and the creation of jobs.
  5. Unique design. Most large gambling centres are opened under a franchise, largely repeating the parent company’s style (for example, a hotel chain or a mall). The decision to launch a compact hall is an opportunity to organise an authentic space with an original external decoration.

The Most Famous Mini-Casinos in the World

Well-known mini-casinos: characteristics

Let us consider the list of iconic establishments:

Slots-A-Fun

It is located on the famous Las Vegas Strip. The company was founded in the early 70s when it was run by the Kansas mafia.

The hall is distinguished by its small size and authentic atmosphere. Free soft drinks and aromatic popcorn are distributed here. The establishment is known for its low initial rates. For example, it is possible to play dice with a bid of $2 or blackjack for $1.

The brand belongs to the famous MGM Resorts International concern. Despite this, the club manages to operate independently and maintain a unique author’s style.

Deltin Caravela

This is one of the most famous floating casinos in the world. It has only 17 card tables for playing:

  • poker;
  • baccarat;
  • blackjack.

Visitors can enjoy the incredible landscapes of the Mandovi River (India) and an authentic atmosphere. The ferry ticket price includes two buffet-style meals a day.

Deltin Caravela is licensed by the state of Goa. This is one of the few territories in the region that allows the operation of land-based and floating casinos.

North Cadbury Court

The facility is located in the basement of a famous mansion in the county of Somerset (UK). Francis Hastings' country estate has an area of ​​1,200 square metres, while only 50 sq. m are allocated for the mini-casino. This is undoubtedly the smallest gambling establishment in the world, with a capacity of 30 people.

Saloon No. 10

The legendary place can be found in South Dakota, in the city of Deadwood (USA). It has several card tables and a dozen slot machines.

The venue’s calling card is the original interior. It takes visitors back 200 years to the Wild West, to fearless cowboys and stern sheriffs. Business owners offer signature whiskey, which can be enjoyed at the bar.

The facility has an atmosphere of boundless fun and excitement. Traditional Texas Hold'em tournaments are held every Thursday.

Wildfire Casino & Lanes

This is another Las Vegas location on our list. The hall successfully combines bowling and betting. Moreover, visitors can have a snack at the Wild Grill bar adjacent to the establishment.

The Main Things about Compact Gaming Venues

Launching mini-casinos is a current trend in the land-based entertainment sector.

Key nuances that entrepreneurs need to take into account:

  • Such places benefit from their small size, which means lower opening and maintenance expenses. Many jurisdictions reduce licence fees and provide other special offers to gambling operators that own a business of this type.
  • Compact facilities are extremely popular in the USA, Romania, Ireland, Great Britain, and other countries where games for money are in demand.

From the Online Casino Market studio, you can order a White Label platform, sportsbook software, and other useful solutions. Thanks to our convenient constructor, it is also possible to independently launch an original iGaming project.

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Karen Fill

Author

Karen Fill

Gambling business expert at Online Casino Market

Updated 12 november 2024