DEFINITION of 'Casino Finance'

A slang term for an investment strategy that is considered extremely risky. Casino finance refers to casinos and gambling, where players may have little to no control over the outcome of their bets. The terms often refers to large "bets" on investments that are typically high risk, with an anticipated high potential reward outcome. However, as with betting at a casino, the investor could "lose it all".

BREAKING DOWN 'Casino Finance'

Casino finance generally refers to high dollar bets in the markets, either involving high risk investments, and/or high leveraged accounts. Investors who employ these tactics are usually taking large risks in order to attempt to earn large rewards. While most investors prefer a more conservative approach, some investors are comfortable undertaking a large amount of risk, in order to have the opportunity to secure large returns.

RELATED TERMS
  1. Outcome Bias

    A decision based on the outcome of previous events without regard ...
  2. Gaming Industry ETF

    A sector exchange-traded fund that invests solely in gaming companies, ...
  3. Spread Betting

    A type of speculation that involves taking a bet on the price ...
  4. Pari-Mutuel Revenues

    The income a gaming company earns from customers' mutual betting ...
  5. Martingale System

    A money management system of investing in which the dollar values ...
  6. Gambling Loss

    A loss resulting from games of chance or wagers on events with ...
Related Articles
  1. Investing

    Why Does the House Always Win? A Look at Casino Profitability

    Understand how a casino has a number of built-in advantages that insure it, and not the casino players overall, will always come out a winner in the end.
  2. Investing

    These 2 Casino Stocks are Winners (MGM,LVS)

    While casino stocks haven’t been faring well over the past year, these two remain winners.
  3. Investing

    Judge OKs Pinnacle's Casino Sale, Lease-Back Deal

    Casino operator Pinnacle Entertainment (PNK) got a judge's approval to sell a casino to a real estate investment trust and then lease it back, despite the objections of the casino employees' ...
  4. Managing Wealth

    How to Play the Gaming and Gambling Sectors

    An upturn in macro revenue numbers should signal a significant trading and investment opportunity in the gaming and gambling sectors.
  5. Investing

    4 Gambling Stocks that Outperformed Since 2010 (CHDN, MPEL)

    A look at four stocks in the casino and gambling industry that outperformed the market for the last five years.
  6. Trading

    The Casino Mentality In Trading

    Many new traders treat the market like a casino, placing unwise bets and hoping for the big win.
  7. Investing

    2 Weeks After IPO, Red Rock Resorts Goes Shopping

    Well, that didn't take long. Fresh off its IPO two weeks ago, Red Rock Resorts (NASDAQ: RRR) has announced it is looking to grow bigger by buying the off-Strip Palms Casino Resort for $312.5 ...
  8. Investing

    Icahn to Close Trump's Taj Mahal after $100M Loss

    Billionaire Carl Icahn's bad hand has forced him to close Atlantic City's Trump Taj Mahal casino, which he bought from Donald Trump
  9. Investing

    MGM Resorts Hunts for Ways to Thwart Tribal Casino

    Recently thwarted in its attempt to promote federal legislation that would have undermined the  construction of a competing casino in a neighboring state, MGM Resorts International (NYSE: MGM) ...
  10. Investing

    Should Bet on This Top Gaming ETF?

    BJK has been performing well, but is this just a blip in an otherwise bear market for gaming companies?
RELATED FAQS
  1. What taxes will I pay if I win a lot of money while gambling in Las Vegas?

    Travel to Vegas and try to win big at the casino; but before you do, make sure you understand the tax laws that govern gambling ... Read Answer >>
  2. Is financial spread betting considered an investment?

    Learn about the basics of investing in spread betting and how investors protect investments from loss when using this risky ... Read Answer >>
  3. What are some examples of financial spread betting?

    Learn how financial spread betting is done, and see examples of some of the ways that investors can use spread betting as ... Read Answer >>
  4. How does market risk differ from specific risk?

    Learn about market risk, specific risk, hedging and diversification, and how the market risk of assets differs from the specific ... Read Answer >>
  5. What is the difference between speculation and gambling?

    Learn about speculation and gambling, examples of speculation and gambling, and the main difference between a speculator ... Read Answer >>
Hot Definitions
  1. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  2. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  3. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  4. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  5. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  6. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
Trading Center