HSPM 201 Casino Management Final Exam
Straight bets in horseracing is a type of bets that
bet on a single horse to finish first, second, or the third
Trifecta is a type of exotic bet that
bets on the first three finishing horses in a race in the order of their finish
Which of the following games give players additional ways to win by activating additional symbols, as players increase their wagers?
buy-a-pay games
A tie bet
can be placed with or without player or banker bet
The order of suits in a Blackjack game is
diamonds = hearts = spades = clubs
Assuming a player inserts a $100 bill into a slot machine's currency acceptor and hits the cash-out button without making any wagers. The machine prints a $100 voucher. The player collects the voucher and leaves the casino. The payout rate of this game is 85%. How much coin-in would this activity generate?
$0
Assuming a casino has revenue of $100 million in 2019. The direct gaming tax rate the casino is subjected to is 25% and its total operating expenses are $73 million. What is the casino's net income for 2019?
$2 million
During the past week, a casino had Coin-in, $240,000; Hand Paid Jackpots, $44,000; Progressive Accrual, $2,400; Drop, $200,000; Vouchers Issued, $150,000; Coin-out, $160,000; and Fills, $0. What is the win?
$33,600 (Win = Coin In - Coin Out - Hand Paid Jackpots - Fills - Progressive Accrual)
You randomly select one card from a shuffled deck of 52 cards. You wager $100 and win 10 to 1 if the card is a Spade Ace. The house advantage of this game is:
$78.84
You randomly select one card from a shuffled deck of 52 cards. You wager $5 and win even money if the card is an Ace. The expected value of this wager is:
-$4.23
You randomly select one card from a shuffled deck of 52 cards. You wager $100 and win 10 to 1 if the card is a Spade Ace. The expected value of this wager is:
-$78.84
In a Baccarat game, what is the card total of a Q and K
0
The probability that the first five cards from a well-shuffled deck of cards is a royal flush is:
0.000000003206
The probability that the first card from a well-shuffled deck of cards is the Ace of spades is
0.01923
The value of an Ace card in the combination of Q, 6, and Ace should be
1
If a player is dealt a natural, but the dealer does not have a natural, the player's wager will be paid at a rate of
1.5:1
What is the probability of getting the number 10 from two dices?
1/12
If a card is randomly selected from a deck of 52 cards, the probability of it being an Ace is
1/13
What is the probability of getting the number 2 from two dices?
1/36
If a card is randomly selected from a deck of 52 cards, the probability of it being a diamond is
1/4
Which of the following initial two cards in a Blackjack game can be split?
10 and K
The value of an Ace card in the combination of K and Ace should be
11
Which of the follow dice amounts has the smallest probability to occur in the Craps game?
12
At what age did Seabiscuit die?
14
The Louisiana Lottery was authorized in___________, and was operated by _________.
1868; a group of businessmen or a syndicate
In ________, Charles Fay created the________ in _________
1887; first true slot machine; San Francisco
When did the state of Nevada banned gaming and reversed itself and legalized gaming?
1911 and 1931
When did the State of Iowa legalize gaming?
1989
In a Blackjack game, the card total of the combination of a 10 and a J is
20
The results of analysis on a new table game show that, in a long run, the player will lose $0.37 for each 10 bet. What is the house advantage of this game?
3.7%
How many kinds of baccarat bets were mentioned in the class handout?
4
What is the approximate casino gaming market stare Indian gaming currently represents?
45%
The possibility that Event A will happen is 17.65%. What are the odds against Event A from happening?
4:67:1
The odds of getting the number 6 on a dice is:
5 to 1
Assuming there are 18 stops on each of the three reels of a mechanical slot machine and there is one top award symbol on each reel. The top award would be expected to occur once after how many spins?
5,832
The probability of getting a tail in a coin toss is
50%
The odds that the first card from a well-shuffled deck of cards is Ace of spades are:
51:1
From any deck of cards, how many different two-card combinations of 10 can be made?
6
The player will stand if the two card total is
6, 7, 8, and 9
What is the percentage the state of Iowa collects in taxes on whatever is left over once bets have been settled n sports betting?
6.75%
Usually how many decks of cards are used in a baccarat game?
8
In a baccarat game, what is the highest possible card total in one hand?
9
Under Central Limit Theorem, the condition to assume normal curve is
A large number of trials
Which of the following variables is not used to determine a player's worth?
A player's credit score
The amount of comps is determined based on
A player's worth
Which of the following bets in a Roulette game has payoff of 35:1
A straight bet
Which one of the following hands is a natural.
Ace and 10
According to the data in 2016, Indian gaming experienced the fastest decline in which of the following state?
Alaska
The first permanent structure erected in Las Vegas valley was:
An adobe fort
Baccarat game originated in
Argentina
Which of the following is not one of the trends of slot machine activities in recent years?
As the technology advances, the average useful life of slot machines has significantly increased. A typical mechanic machine has lifespan of thirty years.
Which of the following variables affects a player's worth the most?
Average Bet
In the long run, what kind of bet gives baccarat players more chances to win?
Banker
Why is it acceptable for all players at a Baccarat game to see the card totals of both player hand and banker hand?
Because the rules of draw and stand of the Baccarat game is predetermined and knowing the card totals of both hands will not help the players predict the outcome
In a Blackjack game, the initial bets are placed
Before any cards are dealt
Which of the following methods is the legitimate way of avoiding paying income taxes on the money a player wins from casinos?
Being same amount of money as the player wins
According to the Indian Gaming Regulatory Act, which of the following is a Class II game?
Bingo
Which of the following games documents the amount of money players wager?
Bingo
Which of the following games is a game of skill?
Blackjack
Which of the following was NOT a game or sport that Native Americans played and bet on?
Blackjack
The landmark case for the development of Indian gaming is
Bryan v. Itasca County
Which of the following types of gaming has the highest payback rate (i.e. the percentage of wagered amount that is returned to players)?
Casino Gambling
After a marker is approved, how the dealers usually provide the player with the approved amount?
Chips
Which of the following games does not document the amount of money players wager?
Craps
Which of the following games uses a table that has mirror-image betting fields on both sides
Craps
Based on the class handout, which the following is NOT a basic form of slot game design?
Graphic games
The focus of the Table Game Department is
Customer service and game protection
Table game dealers are often required to stand at specified positions because
Dealers need to protect the games they are dealing
"Comp system" in the modern casino industry
Did not start until the 1940's
What are the three types of jobs casinos create?
Direct Temporary, Direct Permanent and Indirect Jobs
Per-unit expected value to the casino is
Expected Value / Amount Wagered
Which of the following statements regarding the financial controls in casinos is incorrect?
Financial controls in casinos should be limited because they cost a lot of time and money and directly hurt the casinos' profitability
Which state has the most dog-racing tracks?
Florida
The modern state-run lotteries was introduced in
France
Which of the following casino entrepreneurs first hired female blackjack dealer?
Frank Rosenthal
Compared to video reel machines, modern traditional spinning reel machines
Have no significant differences
What is the relationship between house advantage and expected value?
House Advantage = Expected Value / Wager
The cost for a casino to give complimentary goods and service is
Income tax deductible
Which of the following casino was the first one that brought Baccarat game to Las Vegas?
Las Vegas Sands
The first date to legalize casino riverboats was
Iowa
The state agency that regulates the gaming industry in the State of Iowa is:
Iowa Racing and Gaming Commission
Which of the following statements about Iowa gaming industry is incorrect?
Iowa is the third largest gaming state in terms of gaming revenue
Which of the following statements about Iowa's initial gaming laws (before March of 1994) is incorrect?
Iowa's initial gaming laws allowed table games in racinos
Nevada gaming tax
Is a progressive tax (tax rate increases as the gaming revenue increases)
The amount of credit extended by casinos to high-rollers
Is often determined using a process to a bank's loan processing
Giving a player more in comps than she/he loses
Is wrong
Credit is
Issued to high rollers only
Transfer Price is the price the charging department charges the receiving department for guest comps. It is important because
It affects the financials of both departments and player's gambling experiences
In the 1995 film "Casino," Spilotro, renamed "Nicky Santoro," was played by
Joe Pesci
Who developed the first upscale casino in America?
John Davis
Who operated the first state lottery?
King Francis I of France
Which of the following statements is incorrect?
Like commercial casinos, tribal casinos are regulated and taxed by the states
By 1878, ___________ is the only state in the nation that allowed lotteries
Louisiana
Which of the following states require riverboats to be (a duplicate of) historic vessels?
Louisiana
Which of the following is the first cruise ship to operate a full on-board casino?
Mardi Gras
For accounting and taxation purpose, complimentary goods and service should be recorded as
Marketing expenses
What are the he three broad categories of rewards of slot clubs?
Merchandise, Comps and Cash
A(n) _________ game is characterized by increases in the dollar-amount of potential jackpots, resulting from increases in the dollar-amount wagered.
Multiplier
In the state of Nevada, which of the following has the final decision making power in granting or denying a gaming license to an applicant?
Nevada Gaming Commission
The first state run lottery in the 20th century in the U.S. began in 1946 in the State of
New Hampshire
Nevada had a 45 years of monopoly on casino gaming until what state legalized gambling
New Jersey
Which of the following state is the 2nd in the nation that legalized commercial casino (after Nevada)?
New Jersey
Which of the following states has the highest percentage of lottery sales returned to the state?
New York
In which of the following states Indian gaming creates the largest number of job opportunities
Oklahoma
The comps a player receives from a casino is*
One of the itemized deductible items for the player
Where do pit supervisors send the two copies of a marker?
One to the player and one to the drop box at the game table
Who developed the modern version of dog racing?
Owen Patrick Smith
Pari-mutuel is a method of betting introduced by:
Pierre Oller
Which hand must draw a third card if the two-card totals are 0, 1, 2, and 3
Player
A significant change of Hold percentage of a table game indicates
Possible stealing and cheating activities
Which of the following Iowa commercial casinos has the largest number of slot machines?
Prairie Meadows
Which of the following is NOT the reason that gaming has become more acceptable to the public?
Prior to the legalization of gamin in Nevada, gaming was not regulated by the state where it was legal
Casino financial controls are ___________ and __________ in nature
Procedural and Documentary
What ensures the fairness of a gaming device?
Randomness
A lammer is used to
Separate stacks of chips
Win betting is
The easiest bet because a player only needs to pick the horse that finish first in one race
To which of the following firms did the federal government award the contract to build Hoover Dam
Six companies, Inc.
The majority of casino floor space is used by
Slot Machines
Which one of the following is not the result of technological innovation in slot machines
Slot payout rates became much lower
Which of the following acts permitted charities to enter the lottery business?
Small Lotteries and Gaming Act of 1956
Per federal law, gaming profits from Indian gaming are used to
Support tribal government operations
Which of the following is NOT a gaming license issued by the state of Nevada?
Table Game Operator license
Modern traditional spinning reel machines and video reel machines are different in the way
That results are displayed
The tightening of the Nevada casino regulations did not occur until:
The 1950's and 1960's
Who/which organization approved the rules that include a start date of August 15 for Iowa Casinos to take sports wagering?
The Iowa Racing and Commission
Types and amounts of comps are mainly determined by
The amount a player wagers
In casino operations, Hold represents
The amount of money the casino holds after winnings are paid
Which of the following statements regarding comps to slot machine players is not true?
The amount of the comp a slot player receives is considered as "Drop"
Like most other table games, Baccarat players wager against
The casino
"The odds are 12 to 1 that IT will happen." Means
The chances IT will not happen is 12 times as big IT will happen
Although Las Vegas was founded in 1905, it did not start growing until:
The construction of Hoover Dam between 1930 and 1935
According to the Law of Large Numbers
The larger the number of trials is, the more likely the actual probability of an outcome occurs will be equal to the theoretical probability
The Z-Score indicates
The number of standard deviation above or below the mean a value is
The key difference between combinations and permutations is that
The order in which the selected objects are arranged is important in permutations
Amount of credit to be granted is based on
The pre-developed formula
In casino operations, Count refers to
The process of counting the contents of cash containers
In casino operations, Drop is
The revenue the casino collects in all gambling activities
Gaming revenue is
The total amount of money wagered less Paid Outs
Based on the class handout, which of the following statements regarding the invention of chinless slots is incorrect?
This invention decreased the slot payout rate
Which of the following is not a purpose of complimentary goods and services?
To encourage players to dine in restaurants inside the casino
To determine the comp amount for a slot machine player, the casino needs to
Use the information recorded by computers
Which of the following games does not belong to the Table Game Department?
Video Poker
Which of the following statements regarding video poker is incorrect?
Video poker represents approximate 50% of the electronic gaming machine market
Standard Deviation is a measure of
Volatility
Indian gaming does not exist in which of the following states?
West Virginia
Which of the following statements is true?
When the Civil War started, most gamblers abandoned the riverboats and fought safety in New Orleans
Under what circumstances does a table game dealer need to tap a chip vertically on the edge of the chip rack?
When the dealer receives chips as tips
Computer controlled slot machines enable
a casino to control the house advantage and pay higher jackpots and remain profitable
According to Thomas Jefferson, a lottery is
a form of a tax
The term "a bank of slot machines" refers to:
a group of slot machines
Odds is
a long-run ratio of number of times an outcome does not occur to number of times an outcome occurs
Probability is
a long-run ratio of number of times an outcome occurs to number of times an experiment is conducted
Expected value is
a long-term concept that measures a player's performance
A heat map is
a map of casino floor shows slot performance
When casino operators forfeit a percentage of coin-in or win in exchange for the use of a game maker's slot machines, the arrangement is known as _____________ in the gaming industry.
a performance based participation agreement
In the Blackjack game, push means
a player's hand and the dealer's hand have some value
Which of the following statements regarding racetrack expenses is correct?
a racetrack charges racetrack expenses based on a percentage of total bet
If the expected value is $10 and the standard deviation is $1. The chances the actual value falls between $11 and $9 is
about 68%
When a gaming table accumulates too many chips, some chips need to be removed from the table and sent to the cage. The process of removal chips is known as
credit
Utilization is calculated by
dividing number of gaming spots in use by total available number of gaming spots
A blackjack dealer
does not need to have very good math skills because there are fixed draw and stand rules for Blackjack dealers to follow
Comps are*
easily abused and can cause significant impact on financials of the charging and receiving departments
Volatility index listed on a par sheet can be used to
estimate how actual hold percentage varies from theoretical hold percentage
The most popular form or racing in the U.S. is
horse racing
The three main pari-mutuel wagering activities in the U.S. are
horse racing, dog racing, and Jai alai
The main reason that multiple employees are required in various cash-handling activities is
humans are less likely to do something that is disapproved by peers around us
According to course materials, a slot analyst
is responsible for slot performance analysis
Differential Betting limit of a baccarat game
is the allowed difference between the total amount wagered on banker hand and the total amount wagered on player hand.
If the stated payback rate of a slot machine is 85%,
it is very unlikely that a player will get 85% of the total wagered amount back at the end of the day
Volatility analysis is an important tool for casino managers because
it tells the manager when to investigate the casino's performance
By accepting large oversea deposits from players, a casino
might unintentionally facilitate money laundering
According to the class handout, which of the following bets has the highest house advantage?
no commission banker
If the card total of the first two cards in a player hand is 8
no more cards will be dealt
Which of the following table games has higher house advantage than Keno does?
none
Standard Deviation is a useful measure only when
normal distribution is assumed
If a slot machine holds 2%, a player can
not expect to get back 98% of the money wagered in the machine
Before 1980's most comps were offered to table game players mainly because
only table game players could be identified
In pari-mutuel wagering, a player is betting against:
other players
A royal flush is
ranked the highest, it is a unbeatable hand
Which of the following is not one of the popular types of slot machines?
single-line, single-play video devices
In casinos in the U.S.,
slot machines are more popular than table games and produce more gaming revenues
What is the relationship between variance and standard deviation?
standard deviation is the square root of variance
The Vice President of casino operation has responsibility for:
strategic planning
A negative Z-Score indicates
that a value is less than the mean
Randomness is particularly important for casino games because of unpredictability. However, it does not mean totally unpredictable because of
the Law of Large Number
The Expected Value concept can be used as a performance measurement for casino management because of
the Law of Large Numbers
Expected value is
the amount of money a player can expect to win or lose
Money laundering through a casino is made possible by*
the casino's willingness to "loan" money to players
A dealer's up card is
the dealer's initial card that is dealt face up
A "no roll" in the Craps game usually occurs when
the dices do not make it across the layout and hit the wall
Utilization represents
the efficiency of table game operation
A burn card is
the first card from the shuffled and cut deck
Ted Arison was
the founder of Carnival Cruise Lines
If the dealer and a player are dealt a blackjack at the same time,
the hand is over and there is no winner or loser
The largest expense in running a bingo hall is
the labor expenses
House advantage represents
the long-run theoretical win percentage of each game
In a Blackjack game,
the minimum number of cards a player should have is two
Hit Frequency is
the percentage of time the machine pays
House advantage of slot machines represents
the proportion of the money wagered in a machine that a casino gets to keep in a long run
The probability that the first card from a well-shuffled deck of cards is the Ace of spades is
the same as that of Ace of diamonds or Ace of hearts.
Based on the normal distribution, the actual casino win always falls between
three standard deviations below and three standard deviations above the mean
the purpose of the Nevada Gaming Control Act requires a two-tiered gaming control system is:
to avoid possible corruption
One of the main reasons that some cruise ships are registered under the flag of a foreign country is
to not to comply with the U.S. laws
In pari-mutuel wagering, the term "write" represents
total amount of money wagered
If all players were able to play optimally, the Blackjack game
would not have house advantage
