Wednesday, June 29, 2011

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.

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