Question

​Recently, a casino issued a press release announcing that a cocktail waitress won the​ world's largest slot jackpotlong dash—over ​$30,000,000. She said she had played less than​ $50 in the machine when the jackpot hit. The top jackpot for this type of slot machine builds from a base amount of​ $7 million and can be won with a​ 3-coin ($3) bet. ​

a) How can the casino afford to give away millions of dollars on a​ $3 bet?

​b) Why did the casino issue a press​ release? Wouldn't most businesses want to keep such a huge loss​ quiet?

a) How can the casino afford to give away millions of​ dollars?

A.The casino earns more than the value of the jackpot from people who bet but do not win.

B.The casino probably has insurance to protect against such large jackpots.

C.The jackpot is paid by the gaming​ commission, not the​ casino, so the loss is divided among all casinos.

D.The casino cannot afford to give away millions of dollars for a​ $3 bet and will probably have to shut down

​b) Why did the casino issue a press release rather than keep the loss a​ secret?

A.The casino issued the press release to ensure that the winner pays all necessary taxes on the jackpot.

B.The press release generates​ publicity, which entices more people to come and gamble. The amount the casino earns from this more than makes up for the jackpot.

C.The​ casino, like any​ business, is obligated by law to report such a loss.

D.Since word of the loss would​ spread, the casino issued a press release to put the best spin on the loss and to prevent accusations of trying to cover it up.

Answer 1

Answer:

a)

The gambling club stands to give away million of dollars as the club wins from enormous number of individuals who wager $3 however don't win any sum.

Along these lines, the right choice is,

Option A is right answer.

i.e.,

The casino earns more than the value of the jackpot from people who bet but do not win.

b)

The gambling club issues a question and answer session to advance that an individual has win a big stake with simply playing under $50. This will draw in more individuals towards club, and their salary would develop (as just 1 or 2 would win the big stake).

In this way, the right alternative is,

Option B is right answer.

i.e.,

The press release generates publicity which entices more people to come and gamble. The amount the casino earns from this more than makes up for the jackpot.

Answer 2

a) The correct answer is A. The casino can afford to give away millions of dollars on a $3 bet because it earns more than the value of the jackpot from people who bet but do not win. The majority of gamblers will lose money while playing at the casino, and their losses contribute to the overall revenue of the casino. The occasional large jackpot payout is offset by the consistent revenue generated by the majority of players.

b) The correct answer is B. The casino issued a press release to generate publicity, which entices more people to come and gamble. The amount the casino earns from increased customer traffic and media attention more than compensates for the jackpot payout. By publicizing the big win, the casino creates excitement and attracts new customers who hope to have a chance at winning a large jackpot themselves.

It is important to note that the answers provided are based on typical industry practices and assumptions. Actual casino operations and policies may vary.