Introduction to Casino Optimization Model
Casino floor is a complex operation with multiple variables and significant volatility. To maximize profits, you need a model that explores a multitude of possibilities in order to discover the best outcome.
Table profit is given by the formula:
"Table Revenue - Table Cost"
where Table Revenue is a product of House Advantage, Game Speed, Table Utilization and Average Bet.
Since Game Speed decreases non-linearly as utilization increases, OPTIMAL patrons per table is a trade-off between Game Speed and Head Count per table ...