Why Casinos Stopped Operating, When They Win More Than Losing?

[Youngrebel]

As the topic said, the question just came to mind and I decided to know more reasons. Casinos make profit than losing to gamblers, yet they stopped operation. Sometimes they even stopped operating with gamblers funds which they win. I know that government policies can make a casino to stopped their operation, and that is understandable but whereby everything is good for them to operate, yet they stopped operation. Why? Was it that they were not making profit or workers were not faithful to them for accountability or what?

I have also seen some casinos going offline with exit "scam". What I mean by exit scam. Gamblers wins were not paid but they stopped operation. No contact again and the site offline. What is the caused? Because Initially they made profit.

[Hazink]

If the casino started with just a small fund as part of a reserve to pay winners and grow from them at their first stage of starting, they might be hit with bad luck and a lucky winner might end up bankrupting them if they don't set a limit to maximum winnings, and when such happens, instead of paying the winner, they can just decide to exist.

Another scenario could also be that their initial plan was never to stay for long but started up attracting enough customers and enough money to meet their scam targeted amount. Once they achieve that goal, they will exist, wait for sometimes and come back with another name as a totally different casino.

Side note: This topic should be in gambling discussion, not the main gambling board.

[BitMaxz]

There are many reasons why they stopped operating.
For a legit casino, what I know is due to huge operating costs and possible internal theft and bad management. They want to stop it, and I think they are going to reestablish with a different name and new employees to clear up these.

For non-legit casinos, since they are unregulated casinos, they can do whatever they like once they already make a good profit.
Their business model is a pure scam, not paying winners, and they don't let users withdraw their funds. Unlike regulated ones, they do need to follow the law to segrate players funds.

[Jawhead999]

Could be a reason, because they find better business which generate higher profit than in their casino.

I've heard this from a businessman, "if your business takes your time and effort, but the reward isn't worth it, better to stop it. It's make sense though, why people have to wasting their time when their business aren't profitable and they have opportunity to switch to other business?

Even though casino technically should be profitable, but the competition is getting tighter.

[Mrbluntzy]

Why? Was it that they were not making profit or workers were not faithful to them for accountability or what?

Have you head about "exit scam"? A casino can be operating as normal and making profits meanwhile they are just scammers in disguise, once they have hit their desired targeted amount or audience, they will close the casino, that's an exit scam which can be the reason why a casino can close. After they close, they can still relaunch with different name. The other reason can be due to operational cost leading to bankruptcy, government policies (high taxation and not complying to laws, etc).

[_act_]

It is not as easy as you think, some gambling sites may not have high traffic. Some gambling sites may have high traffic but later as some other gambling sites are coming up, the gambling site may not have traffic like before. And gambing sites really depend on high traffic. If there is not traffic, the gambling site might fold up. This can happen in all businesses and not just in gambling businesses.

[xLays]

As the topic said, the question just came to mind and I decided to know more reasons. Casinos make profit than losing to gamblers, yet they stopped operation. Sometimes they even stopped operating with gamblers funds which they win. I know that government policies can make a casino to stopped their operation, and that is understandable but whereby everything is good for them to operate, yet they stopped operation. Why? Was it that they were not making profit or workers were not faithful to them for accountability or what?

I have also seen some casinos going offline with exit "scam". What I mean by exit scam. Gamblers wins were not paid but they stopped operation. No contact again and the site offline. What is the caused? Because Initially they made profit.

I think you already answered some of your own questions.. the main reason is usually because there’s a threat to their company or platform. Instead of waiting to get hit with cases or penalties, they choose to shutdown first before facing fines. It’s mostly about regulations.

Unless they’re already satisfied with their profits like of course, if I were in that position, I’ll also stop and just focus on another business. So basically, it’s usually one of two reasons either government issues or regulatory compliance.

[iv4n]

....
What is the caused? Because Initially they made profit.

And how do you know exactly that they made a profit?

So you opened a topic without any examples or facts... just a random question about why some casinos closed their doors. And now we can be imaginative and come up with many reasons why something like that happened... without any real evidence or facts.

It's hard math... but we can say that only 1 in 100 (1000, or more) projects become successful. Sometimes it's because the director got addicted to "High Life", and many times it's because of the multiple factors. In any case, it's foolish to make any assumptions without knowing the complete story...

[JariKriting]

Because they are bankrupt and out of funds to pay their members' winnings, they are closing. Even if they didn't close, they would only become a scam site unable to pay their winning members. It's the same with gamblers; if they run out of money, they will stop gambling, find more money, and then gamble again.

[rachael9385]

As the topic said, the question just came to mind and I decided to know more reasons. Casinos make profit than losing to gamblers, yet they stopped operation. Sometimes they even stopped operating with gamblers funds which they win. I know that government policies can make a casino to stopped their operation, and that is understandable but whereby everything is good for them to operate, yet they stopped operation. Why? Was it that they were not making profit or workers were not faithful to them for accountability or what?

I have also seen some casinos going offline with exit "scam". What I mean by exit scam. Gamblers wins were not paid but they stopped operation. No contact again and the site offline. What is the caused? Because Initially they made profit.

There are two reasons why this can happen, one is, the casino wasn't really legiti from the beginning, they already have a specific period for which they would operate and go ghost, it's all part of their plan. Another reason why this can happen is when the casino losses too.much money and perhaps find it difficult to settle gamblers, although this is very unlikely because the system is designed to make more profit

[Nathrixxx]

There could be any reason to why a casino stops in operations and mostly are not due to the intention that they wanted to cart away gamblers funds with them, though I understand they could actually go bankrupt for any reason, yet they have many more other reasons that can make them cease from operating, such could be government regulations, hack or bankruptcy and poor management practices.

[Przemax]

Just like any other business they can struggle with outflow of customers, bad luck, random events, troubles staying in the market etc etc. Business is business baby.

To stay in the market one sometimes have to pay a lot for an advertisment. That is sometimes too much to handle for many.

There are some other reasons already mentioned. I just wanted to state some more obvious reasons.

[Wiwo]

The possibility of exit of casinos wether legit exit or scam exit, that is why we should choose to gamble only on reputable casino's since we already know that the presence in the gambling scene has a proven record that anyone can check easily.

Most of the casinos that have legit reasons to exit, their normally allow their customers to withdraw thwir fund's.

Only scam casinos walk away with gamblers money both in winning and in they balance.

[Nwada001]

Because they are bankrupt and out of funds to pay their members' winnings, they are closing. Even if they didn't close, they would only become a scam site unable to pay their winning members. It's the same with gamblers; if they run out of money, they will stop gambling, find more money, and then gamble again.

Just like every other business, there is risk in trying to run and handle it in the long run. If a casino notices that they are running out of finance, instead of allowing it to get to a point where they won't be able to pay winners, it's best they shut down or, better still, look for buyer as some casinos have done in the past. It's better to exist with a good name than for things to later get ugly due to lack of planning.

[Merit.s]

They will pack up if they're no longer getting the expected amount that is needed to continue running the business. Lack of financial management can also lead to them shutting down.

However, some casinos came out with the intention to pull am exit scam after they have gotten the amount of money that they target. The casino might choose to go for a rebrand if it has been bought by a new investor.

[Odusko]

There is a case here in court here in my country, the gamblers won 180 millions in my local currency and on getting to the cash out point  he was told to wait for the CEO to return from the capital city befor he present the bank cheque for 180 millions for him, ;but he was scammed in the end, he never get feedback from them and just 2 day after the casino packed up and left with huge debt.

[salad daging]

There are many factors that cause a casino to cease operations.

1. Due to strict regulations from the government
2. Expensive operating costs that profit income does not cover.
3. High penalty cases in court.
4. Decrease in revenue.
5. Loss of trust from its customers.

This is just my own guess.

But it's rare now that casinos stop operating? Despite strict government regulations, casinos are still operating even though they are restricted.

[DaNNy001]

Casinos that stop operating are obviously scam casinos because i can't really say that they stopped because they ran out of money? Is that really possible? Asking based on the fact that there's a high level of house edge on almost every casino game, losing money isn't whay they designed it for it's actually the opposite of that, everything was programmed to take from players that arr constantly gambling

[famososMuertos]

Honestly, sometimes I think these topics are better than those dedicated to the gambling addiction that seems to spread like a virus on the forum, only to garner an opinion on a generic subject where everyone fancies themselves an expert.

Then you just pull a topic out of thin air and don't provide any data. I half expected to find a list of casinos that have closed in the last 10 years—something an individual would do when actually researching an idea. At the very least, the OP should bother to do some basic research before starting a new thread. We already have enough 'nonsense' without having a fresh barrage of flatulent ideas unleashed upon us.
And like a contagious virus, here I am contributing my own sh*tpost to the topic.

---
On-Topic:
Any business, whatever its niche, has a defined lifespan. Some last five years, others one. In fact, it's often said that a business that lasts five years is successful, regardless of its eventual end.

Therefore, the closure of casinos—even profitable ones—is neither unique nor unusual.

In fact, right here on the forum, a couple of casinos closed when Bitcoin hit+ \$20,000, and it wasn't due to debt or anything similar; their specific goal was simply to close. While I don't have exact references for that (I'm acting just like the Original Poster, but in my defense, this is a story that actually happened here; perhaps someone with the exact documentation can provide it)

Now!
"Finally", the reasons are... well, they depend on the history of each casino.
(I suppose that's the short answer I should have given at the beginning).

[goldkingcoiner]

This is why it is best to stick with big, old and well known casinos that are strictly regulated by trustworthy regulators, in trustworthy countries that can be legally touched by the lawyers of your own country. It is the only sure way to not get duped into losing all your money in some offshore new casino that nobody has ever heard of and have no fears because they cannot be touched by your countries laws.