Online Casino – Can Casinos go Bankrupt

Casino, Online, Gambling

How often do worst online casino¬†go bankrupt? This is a question I receive a lot from my clients, some of them having just lost their last Casino Winnings. “Did you know that over the past 9-year stretch, over two hundred and sixty-four Casinos have gone bankrupt?” That is not including the many Micro-cap Companies that have gone out of business in the last year.

Online Casino

The answer to that question depends upon who you ask. In my experience no one ever talks about the number one reason for a Casino’s bankruptcy, which is gambling related mistakes. One reason, maybe two or three, are mistakes that happen on a regular basis and happen to every Casino Company. But that doesn’t mean they are the reason for most of a Company’s problems. The number one reason for many Casino’s bankruptcy is poor management. Poor management and lack of experience lead to disasters and costly mistakes.

So lets look at the reasons why a Casino might go bankrupt. Lets look first at the income statement. What do you see on your income statement? A major problem, I hear all the time, is the inability of a Casino owner or Board of Directors to accurately and fully report all income. A Casino can go bankrupt for a multitude of reasons and there is no simple formula for a company to determine the reasons.

Bankrupted Casino

So we know that most of online casino games, a Company’s income statement, balance sheet, net income statement and cash flow statement are all wrong. What kind of errors do we come up with then? The truth is that there are hundreds if not thousands of errors that can be found in the income statement alone. So imagine how many other items we could miss if we were to apply the same process to every Company.

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