Oireachtas Joint and Select Committees
Wednesday, 2 October 2013
Joint Oireachtas Committee on Justice, Defence and Equality
Gambling Control Bill: Discussion
11:55 am
Mr. David Hickson:
Unfortunately, the information in Ireland is pretty thin on the ground and only a couple of operators are fully audited by accountants and adhere to best practice in that regard. I know from my own experience that the figure is approximately 3%. I did some online research on Monarch Casino & Resort, Inc., which reported a net profit margin of 4.8% as opposed to an industry average of 2.2%. In America, the percentage depends on the leverage that businesses have with debt, and many companies sought Chapter 11 bankruptcy a few years ago because they were so highly leveraged that they could not cover their interest repayments. Unfortunately, based on my research, there is no one size fits all approach, and the profit can depend on the product mix. Some of the resorts consist of hotels and salons, as well as machines and tables, so it is very hard to find a number that fits everything.
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