Opening a poker room in Texas can cost between $500,000 to $1 million.
First Time Licensing and Legal Fees
This is expensive – thousands to tens of thousands of dollars. Yep, you heard that right.
Business Operating License (REQUIRED TO BEGIN): It usually runs a few hundred dollars, depending on where you are located, on average about $300 to $500.
License to gamble: This is the big one. Depending on the size and type of poker room, this can cost anywhere from $1,000 to $10,000.
According to the staff report, Texas is hoping to run a background check on any “person officially involved in the operation of the poker room.” This will cost another $200 – $500 per person.
Lawyer fees: Lawyers usually cost anywhere from $200 to $500 per hour, my mom advised at least $2,000 to even $5,000 in legal fees.
Security and Surveillance Centre: An estimate of $5,000 to $10,000 for a decent surveillance system. This includes cameras, recording equipment, and potentially hiring a security team. A security guard is about $30,000 to $50,000 per year.
Renovation and Interior Design: $20,000 – $100,000+ ensuring that your poker room is both aesthetically pleasing to the eye as well as functional for all players, can cost you between this wide price range. Poker tables can cost a thousand or 7,000 bucks each.
Marketing and Advertising: Plan to spend between $5,000 and many tens of thousands on initial marketing & advertising. This may include social media, local ads, or online promotions.
Utilities and Operational: monthly operational costs like rent, utilities, etc., can range between $5,000 to $15,000.
Insurance: This includes liability insurance and property insurance, which can range from $1,000 to $5,000 annually.
One day, a friend of mine says, I think Max is right; we ought to build and run this poker room where everyone who comes in here will pay us $200 just for the privilege. Conclusion: Hosting regular games would rake you around $50 to $200 per table that night in certain places with a standard percentage of rake fee for each pot. If you have 10 tables running five nights a week, that can be from $2,500 to $10,000 per week. If you multiply that by 4 weeks, now we are hearing about $10,000 – $40,000 per month. This means annual earnings would subsequently be between $120,000 and $480,000 although you also have to bear in mind this is before tax.
Taxes: Texas wants their pounds of flesh as well. This money is subject to state and federal taxes. Local taxes, including corporate tax rates, so going for 20-30% of gross income is safe in terms of budget.
Location and Venue Costs
Urban vs. suburban locations: In cities such as Houston or Dallas, rent on commercial property might range from $20 to $50 per square foot annually. That equates to $60,000-$150,000 annually in rent on a 3,000 sq. ft. space. In the suburbs, you may be looking at rates somewhere in the $10 to $25 per square foot range so your total rent could drop down to as little as $30,000-$75,000 annually for that same space.
Renovation and Build-out Costs (i.e. poker tables, bar area, restrooms, surveillance): Cost of renovating depending on the quality of materials and complexity in design from $50-$150 per sq. ft. This could result in an added $150,000 to $450,000 charge for a 3,000-square-foot area.
Zoning – Commercial: Ensuring the property is zoned and properly suited for entertainment/gambling properties. Consult your local planning board (or a lawyer) for more detailed information, as zoning regulations vary greatly.
BYO Food/Drink: Yes, if applicable, describe: “Will be available.”
Parking and Accessibility: Adequate parking is necessary. One parking spot per 2-3 customers. Paving work typically ranges from $2 to $5 per square foot.
Utilities: Electric, water, heat, and air will come every month. Prepare to spend from $2,000-$5,000 per month depending on the city and size of your location.
Lease Terms: Securing lenient lease terms has a great potential to save you money. For example, sign long-term leases with lower rates or ask for a few months of free rent at the beginning to mitigate those upfront costs.
Example Locations:
- Downtown Houston: Will see more foot traffic but also add to the costs. Rent for a space that would work there could be from $5,000 to $12,500 per month.
- Suburban Dallas: Cheaper, but you might need more advertising. Monthly rent here may range from $2,500 to $6,250.
- Small Town or Rural: These can cost a lot less (as little as $1,000 – $2,500 per month), but getting the same crowd on an ongoing basis will likely be much harder.
Insurance: These will set you back $1,000 to $5,000 per year, depending on the size of and where your poker room is located.
Furniture and Fixtures: High-quality poker tables average between $1,000 up to $3,000 each. For a 10-table venue, expect to spend between $10,000 and $30,000. Throw in some chairs, lighting, and other fixtures — you could be staring down another $20,000-$50,000.
Safety and Surveillance: You can commit $5,000 to $10,000 on a nice rig with cameras and monitoring. The annual salary for security staff is another $30,000 to $50,000 per year per guard.
If you have a bar, you need licenses to serve alcohol and meet fire regulations, which could cost another $5,000 to $15,000 a year for all of these.
Employee wages, marketing, and other – these can add up to anywhere from $10,000 to $20,000 a month.
Services: Renovation, Interior Design
Luxurious Style
- Materials and Finishes: Marble, leather, hardwoods are used for finishing. Professional poker tables cost $2,500 – 5,000 each.
- Lighting and Decor: Adding elegant chandeliers, recessed lighting, and designer decor could also set you back an additional $10,000+.
- Audio-Visual Equipment: HD Screens & Premium Sound System: $15,000-$30,000.
Cost Estimate for a 3,000 sq. ft. venue:
- Renovation: $100 to $200 per square foot.
- Total Cost: $300,000 to $600,000.
Modern Style
- Materials and Finishes: Basic level materials such as polished concrete, metal, or glass. Current poker tables could cost around $1,500 to $3,000 each.
- Lighting and Decor: Modern art pieces along with sleek, adjustable LED lighting could easily set you back $5,000 -10,000.
- Audio-Visual Equipment: Screens with integrated technology for sports or poker streaming ($10,000-$20,000).
Cost Estimate for a 3,000 sq. ft. venue:
- Renovation: $70-$150/square foot.
- Cost: $210,000 – $450,000 Total.
Casual Style
- Materials and Furnishings: Budget-friendly materials such as laminate flooring, cheap wooden or plastic tables. Poker tables may run you $1,000 to $2,000 a pop.
- Lighting and Decor: Basic (unobtrusive) lighting, casual minimalist decor starting at $3,000-$7,000.
- Audio-Visual Equipment: Standard screens and sound systems can range $5,000-$10,000.
Cost Estimate for a 3,000 sq. ft. venue:
- Remodel: $50-$100 per square foot.
- Cost: $150,000 to $300,000.
Quick Math for you on different venue sizes:
2,000 sq. ft. Venue:
- Luxurious: $200,000 – $400,000
- Modern: $140,000 to $300,000
- Casual: $100,000 to $200,000
4,000 sq. ft. Venue:
- Luxury: $400,000 +
- Modern: $280,000 to $600,000
- Casual: $200,000 to $400,000
5,000 sq. ft. Venue:
- Luxurious: $500,000 to $1,000,000
- Modern: $350,000 to $750,000
- Casual: $250,000 to $500,000
Other Considerations
Labor Costs: Mechanical labor in Texas can cost between $50 to $100 per hour for quality workers.
Permit Fees: Permit fees can be anywhere from $500 to upwards of $2,000 depending on the size and scope of your renovation.
Timeline: A remodel will take anywhere from 2 to 6 months.
Reserve 5-10% of the original renovation cost every year for ongoing repairs and updates.
Poker Tables and Equipment
- Simple Tables: $1,000-2,000 apiece.
- Mid-range Tables: $2,000-3,500 each.
- Top-end Tables: $3,500-5,000+.
- Small Venue (2,000 sq. ft.): 5 to 10 tables.
- Medium Venue (3,000 sq. ft.): 10 to 15 tables.
- Large Venue (5,000 sq. ft.): 15 to 25 tables.
Chairs
- Regular Chairs: $50 to $100 Each.
- Mid-Range Chairs: $100-$200 Each.
- Premium Chairs: $200 – 500 Each.
Number of Chairs: 10 chairs per table.
Room Capacity: Up to 50 chairs (small venue). Large Venue: Over 100 Chairs.
Medium-size Venue: 100 – 150 Chairs.
Large Venue: 150-250 chairs.
Chips and Cards
Costs:
- Poker Chips: $200 to $500 (per set of 500 chips)
- Playing Cards: $2 to $5 per deck
Quantity:
- Standard Small Venue: 10 chip sets, 50 card decks.
- Medium Venue: 20 chip sets, at least 100 decks of cards.
- Large Venue: 30 sets of chips, 150 cards.
Dealer Equipment
Costs:
- Dealer Buttons: $5 – $20 Each
- Card Shufflers: $200-$1,000 Each
Quantity:
- Small Venue: 5 to 10 dealer buttons, and about the same number of shufflers.
- Large Venue: 30+ dealer buttons, 20 shufflers.
- Large Venue: 15-25 Dealer Buttons, 15-25 Shufflers.
The Technology and Display Systems
Costs:
- Digital Plaques of Games: $500 to $2,000 Each
- Sound Systems: $1,000-$5,000 (the larger and higher quality it is)
- Security Cameras: $100 – $500 Each
Quantity:
- Small Venue: 5 to 10 screens, low power sound system, up to 20 cameras.
- Medium Scale Venue: 10-15 Screens, 1-2 Sound Systems, 20-30 Cameras.
- Large Venue: 21-35 Screens, 3-5 sound systems, up to 40 cameras.
Calculating the Total Costs
In the case of a medium-sized venue (3,000-5,000 sq. ft.) with a mid-range setup:
- Poker Tables: 12 tables x $2,500 = $30,000
- Seating: 120 chairs @ $150 each = $18,000
- Poker Chips: 20 sets @ $350 a set = $7,000
- Playing Cards: 100 decks x $3 each = $300
- Dealer Equipment: 12 buttons @ $10 each + 12 shufflers
- Digital Screens: 12 x $1,000 = $12,000
- Sound System: 1 system @ $3,000 = $3,000
- Security Cameras: 25 cameras x $300 = $7,500
Total Estimated Cost: $85,120
Staffing and Salaries
Key Staffing Roles
- General Manager
- Floor Managers
- Dealers
- Security Personnel
- Cashiers
- Maintenance Staff
- Marketing and Promotions Team
- IT Support
Costs and Roles
General Manager: Manages operations, finances, and staffing across the board.
Pay: $50,000 – $100,000 per year.
Education: BS in Business Management or related field. Experience in the gaming industry is highly desirable.
Number: 1 per venue.
Floor Managers: Manage game operations, dispute resolutions, and ensure smooth play.
Pay: $35,000 – $60,000 annually.
Education: High school graduate, with proven industry experience (gaming or customer service).
Quantity: 2 to 4 per size of the venue.
Dealers: Run the poker games, manage chips, and maintain game integrity.
Hourly: $15-$25 per hour plus tips.
Education: High School Diploma; Dealer Training & Certification.
Amount: 10-30, with 1 shift per table.
Security Staff: Responsible for the safety and security of the venue/guests.
Average pay: $20,000-$40,000 per year.
Education: High school degree; security training and certification.
Quantity: 2 to 6 (depending on venue size and hours of operation).
Cashiers: Process financial transactions, buy-ins, and payouts.
Salary: $10 to $15 per hour.
Qualifications: HS diploma preferred; cash-management experience a plus.
Quantity: 2 to 4 based on the size of the venue.
Maintenance Staff: Clean and maintain the venue.
Salary: $10 to $15 per hour.
Education: High school diploma; Maintenance experience.
Quantity: 2-4 based on location size.
Marketing and Promotions Team: Generate new players and event promotion.
Income range: $40,000 to $70,000 per year.
Education: Bachelor Degree In Marketing Or Equivalent Knowledge.
Batch Size: 1 to 2 as per marketing strategy.
IT Support: Responsible for the maintenance and upkeep of technology infrastructure including security systems on gaming software.
Compensation: Annual salary range of $40,000 to $60,000.
Qualification Degree: Bachelors in IT or relevant field.
Count: 1 to 2 (depending on the complexity of your systems).
Costs and Staffing by Region
Example Urban Area: Dallas, Texas
General Manager: $80,000 per year.
Floor Managers: $55,000 each.
Dealers: $20/hour + tips.
Security: $35,000 annually.
Cashiers: $12/hour.
Maintenance: $12/hour.
Marketing: $60,000 annually.
IT Support: $55,000 annually.
Annual Staffing Costs for Medium Venue (3,000 sq. ft.) in Dallas:
- General Manager: 1 @ $80,000 = $80,000.
- Floor Managers: 3 x $55,000 = $165,000.
- Dealers: 15 x ($20/hour x 2,080 hours) = $624,000 plus tips.
- Security: 4 x $35,000 = $140,000.
- Cashiers: 3 x ($12/hour x 2,080 hours) = $74,880.
- Maintenance: 2 x ($12/hour x 2,080 hours) = $49,920.
- Marketing: 1 x $60,000 = $60,000.
- IT Support: 1 x $55,000 = $55,000.
TOTAL: $1,248,800 plus tips.
Example Urban Area: London, United Kingdom
General Manager: £70,000 per annum.
Floor Managers: £45,000 each.
Dealers: £12/hour + tips.
Security: £30,000 annually.
Cashiers: £10/hour.
Maintenance: £10/hour.
Marketing: £50,000 annually.
IT Support: £45,000 annually.
Annual Staffing Costs for Medium Venue (3,000 sq. ft.) in London:
- General Manager: 1 @ £70,000 = £70,000.
- Floor Managers: 3 x £45,000 = £135,000.
- Dealers: 15 x (£12/hour x 2,080 hours) = £374,400 plus tips.
- Security: 4 x £30,000 = £120,000.
- Cashiers: 3 x (£10/hour x 2,080 hours) = £62,400.
- Maintenance: 2 x (£10/hour x 2,080 hours) = £41,600.
- Marketing: 1 x £50,000 = £50,000.
- IT Support: 1 x £45,000 = £45,000.
TOTAL: About £898,400 plus tips.
Example Urban Area: Mumbai, India
General Manager: ₹1,200,000 per annum.
Floor Managers: ₹800,000 each.
Dealers: ₹300/hour + tips.
Security: ₹500,000 annually.
Cashiers: ₹200/hour.
Maintenance: ₹200/hour.
Marketing: ₹1,000,000 per year.
IT Support: ₹800,000 per annum.
Annual Staffing Costs for Medium Venue (3,000 sq. ft.) in Mumbai:
- General Manager: 1 @ ₹1,200,000 = ₹1.2 million.
- Floor Managers: 3 x ₹800,000 = ₹2.4 million.
- Dealers: 15 x (₹300/hour x 2,080 hours) = ₹9,360,000 plus tips.
- Security: 4 x ₹500,000 = ₹2,000,000.
- Cashiers: 3 x (₹200/hour x 2,080 hours) = ₹1,248,000.
- Maintenance: 2 x (₹200/hour x 2,080 hours) = ₹832,000.
- Marketing: 1 x ₹1,000,000 = ₹1 million.
- IT Support: 1 x ₹800,000 = ₹800,000.
TOTAL: About ₹18,840,000 plus tips.
Summary of Staffing Needs
Small Venue (2,000 sq. ft.):
- General Manager: 1
- Floor Managers: 2
- Dealers: 10
- Security: 2
- Cashiers: 2
- Maintenance: 2
- Marketing: 1
- IT Support: 1
Medium Venue (3,000 sq. ft.):
- General Manager: 1
- Floor Managers: 3
- Dealers: 15
- Security: 4
- Cashiers: 3
- Maintenance: 2
- Marketing: 1
- IT Support: 1
Large Venue (5,000 sq. ft.):
- General Manager: 1
- Floor Managers: 4
- Dealers: 25
- Security: 6
- Cashiers: 4
- Maintenance: 4
- Marketing: 2
- IT Support: 2