Ask Tangam: Roulette Pricing: Table Minimum vs Chip Minimum, what’s better?

May 28, 2021

3 min read

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The goal of an optimal pricing strategy is to segment your patrons based on average wagers and offer a better guest experience. 

In North American market, table minimum strategy for Roulette consists in the sum of all “inside” wagers that need to be at least the minimum, while the non-value cheques are typically a $1 value, unless it’s a $25 or higher limit when the non-value cheques represent a $5 value.

With the chip minimum strategy used outside North America, the one color non-value cheque is equal to the posted table minimum.

Properties in the US predominantly use the table minimum strategy, while Canada is split between the two. For the rest of the world, a majority of the properties use chip minimum for their pricing strategy.

Here is an example of the difference in average player rated wager between properties applying two strategies:

From the table above the table minimum strategy has a minimal impact on the player average wagers from the $5 to $15 price-point. Despite a 3x increase in table minimum from $5 to $15, the average wagers only increase by 30%. Next, from the $15 to $25 price point, only a 40% increase in table minimum represents a ~3x increase in average wager.

The chip minimum strategy offers a more gradual progression to higher limits  because Roulette players wagering on the inside are typically wagering anywhere from 20 units - 30 units. 

In conclusion, to better segment players based on their average wagers, the chip minimum offers a better segmentation of players and a more gradual progression to the higher limits. There are other benefits to overall revenue with the chip minimum strategy - including a faster game pace.

We cover this topic in depth in this webinar and will be posting a blog post. Stay tuned!

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