Using Table Limits to set Blackjack Utilization Targets

One of the questions I get most often from casino analysts is, what is the optimum table utilization (gaming spots being played), on Blackjack in order to achieve maximum profitability and labor efficiency? Note that the two goals can be somewhat opposed to each other, lower targeted utilization yields increased game pace and therefore has the potential for increased hold percentage (higher profit), higher utilization yields greater labor efficiency because there are potentially fewer tables open to satisfy guest demand (better labor margins). So what target utilization number hits the sweet spot?

While one can perform detailed analysis on this question by modeling hands per hour, shuffle time and frequency, number of decks, game rules, as well as other factors to determine the optimum spot utilization for a particular table operation, I usually start with a simpler approach – I use the actual hourly table limits in place by individual tables opened in order to determine how many spots should have been utilized.

Here are the targets I typically use as guidelines to determine optimum Blackjack utilization, note that these work no matter how many total spots are on the layout (five, six, or seven):

$5 dollar limit – 5 spots covered,

$10 dollar limit – 4 spots covered,

$15 dollar limit – 3 spots covered,

$25 dollar limit – 3 spots covered,

Anything over $25 dollars – 2 spots covered.

Obviously one would need to have hourly limit tracking in order to complete this type of analysis, if your Table Games Department has automated table tracking then this statistic should be readily available. If your department is still taking hourly manual counts then adjust your tracking input form to allow for the recording of table limits as well as spot counts. Keep in mind that the strategies discussed here are guidelines, a starting point for more detailed analysis. You may find that the optimum utilization during late night when business is winding down may be slightly lower.

Many well-respected industry table games experts have expanded on the impact of running too high a target utilization on Blackjack and I encourage you to investigate their analysis and recommendations while developing your own property’s strategy. In the meantime, try these simple guidelines as a starting point; you may be surprised at how close they come to optimum.

Desperate Email

Want a sure sign that the General Manager of a Casino or Hotel has lost confidence in the labor plans in place at their property? Look for their desperate email! You know, the one that comes out on the day before a major event, that comes out on the Friday before a federal holiday weekend, that comes out just before a visit from the corporate office – it reads something like this – please watch your labor! Let’s control overtime! Make sure that your Managers look for early out opportunities! Please help me, I’m desperate!

Want to know another sure sign with the sending of desperate email? It means that the General Manager has not taken the time to fully understand and to be an integral part of the labor planning activities at their property. Why? Because if he or she had actually taken the time to understand and to be a part of the plan then either the email would come out all the time (if the plan were under development and needed encouragement), or would never come out at all (because the plan in place is mature, tested, understood, and reliable). Knee-jerk messages are symptomatic of knee-jerk management, and of lazy management to boot.

As a property leader my message to Managers before a big event is to relax! Have fun! You have worked hard to prepare for this, so enjoy the action that being at a busy property brings! Aren’t these the reasons we got into this game in the first place? Don’t we live to see our guests having a great time making memories at our properties while we enjoy our biggest revenue and profit days? We have analyzed our prior performance over similar events and time periods. Weeks in advance we planned out every aspect of the event with our Marketing and Operational Departments. We have forecasted our anticipated volumes and we have scheduled our employees accordingly. In short, we are ready, and the last minute is not the time to second-guess ourselves. Let’s have some fun and watch our Department Teams in action!

If you are a property leader and you find yourself at the keyboard ready to generate some desperate email, ask yourself, why? Why do I lack the confidence that my Managers can plan in advance and that they can execute under pressure? What part of the labor plan needs more attention so I can be more confident of the outcomes? What do I need to do to become more involved in pre and post-forma marketing analysis? What message do I really want to send to my Managers and Supervisors on the eve of a big event or weekend, one of encouragement or one of fear?

Go ahead and start typing, because in the end you either have to get busy or get desperate.