Comments on: Casino Float http://blogs.n1zyy.com/mistert/2009/03/22/casino-float/ Random thoughts, half thoughts, and just plain stuff I want to blog about Wed, 01 Feb 2012 03:43:45 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Matt http://blogs.n1zyy.com/mistert/2009/03/22/casino-float/comment-page-1/#comment-465 Matt Mon, 23 Mar 2009 21:39:49 +0000 http://blogs.n1zyy.com/mistert/2009/03/22/casino-float/#comment-465 I doubt that they have the full amount in cash. Surely enough to cover more than they issue in a day, but I bet they can bank on a lot being not cashed in the same day. In fact, it's probably one of those accounting things that's so thoroughly decoupled from cash flow that it's hard to answer the question. After a while they'd realize they consistently had $12 million (totally arbitrary) more cash than needed, and start banking some of it for interest. I'm sure there's a big buffer since not all days are the same, but I bet that if you bought lots of chips every single day over the course of a few years, and then one day cashed them all in, they'd not have enough. Kind of like banks and cash, really. Kind of like gift certificates. Besides people who lose or forget about them, you have people who wait months to redeem them, and then lots of people that end up with $3.76 left on a gift certificate to a fancy steakhouse and just throw it out. I doubt that they have the full amount in cash. Surely enough to cover more than they issue in a day, but I bet they can bank on a lot being not cashed in the same day. In fact, it’s probably one of those accounting things that’s so thoroughly decoupled from cash flow that it’s hard to answer the question. After a while they’d realize they consistently had $12 million (totally arbitrary) more cash than needed, and start banking some of it for interest. I’m sure there’s a big buffer since not all days are the same, but I bet that if you bought lots of chips every single day over the course of a few years, and then one day cashed them all in, they’d not have enough. Kind of like banks and cash, really.

Kind of like gift certificates. Besides people who lose or forget about them, you have people who wait months to redeem them, and then lots of people that end up with $3.76 left on a gift certificate to a fancy steakhouse and just throw it out.

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