The Gaming Entertainment Industry

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The Gaming Entertainment Industry
C H A P T E R
C H A P T E R
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After Reading and Studying This Chapter, You
Should Be Able to

• Outline the history of the gaming entertainment
  industry
• Describe the various activities related to gaming
  entertainment
• Explain how gaming entertainment is converging
  with other aspects of the hospitality business
• Discuss the controversies surrounding the gaming
  entertainment industry

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Casinos

• A place to legally wager money
• UK
• Nevada, Connecticut, New Jersey Louisiana
• Casino Gambling Directory

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Gaming Entertainment Defined

• Gaming Entertainment
• Commercial and Native American casinos
• Card rooms
• Charitable games
• Lottery operated games
• Wagering on greyhound and horse races

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Definitions

• Handle
• What the consumer bets (wagers)
• 500 billion dollars
• Win
• Gross gambling revenue
• 48 billion dollars
• Casinos count for half of the U.S. gaming dollars

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Gaming Versus Gambling

• Gaming entertainment
• Casino floor (gambling)
• High-quality food and beverage
• Hotel rooms
• Live performances
• Theme park, theme rides, and museums
• Land, based, and riverboats
• Gambling
• Playing a game of risk for chance of making money

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Who Is the Guest?

• Guests
• Increasing acceptance by all consumers
• 32 of U.S. households gamble in casinos
• Younger players
• White-collar jobs
• Wants total entertainment experience

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Las Vegas
http//www.insidervlv.com/hotelslargestworld.html
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Las Vegas by the Numbershttp//cber.unlv.edu/tour
.html
Time Magazine July 26, 2004

• 6.2 Billion
• 32.8 Billion
• 6.1 billion of it went to gambling. Shows, hotel
  rooms, restaurants, clubs and shops accounted for
  the rest
• 35.5 million visitors
• 5.6 million
• The number of convention delegates who poured
  into Vegas in 2003, an 11 increase from the year
  before
• RevPAR 190 up 40 from previous year
• Occupancy 95
• Vegas is the fastest-growing major U.S city
  7,000 people move to Clark County each month 

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History of Gaming

• History
• Gambling legalized in 1931 in Las Vegas
• From 1940-1978 Las Vegas was a monopoly for
  gaming
• No hotel rooms
• No entertainment
• Gaming Control Board and Nevada Gaming Commission

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The Move to New Jersey

• New Jersey
• Gambling legalized in 1976
• Looked at gaming to invest capital, create jobs,
  pay taxes, and attract tourists
• Casino Control Act funded Casino Control
  Commission

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Native American Gaming

• Native American
• In 1987 the Supreme Court determined if state has
  gaming, so may Native Americans
• 11 of all winnings are from Native American
  casinos
• Indian Gaming Regulatory Act (IGRA)
• Provides framework for games
• Defines different classes of gaming
• www.mohegansun.com
• www.foxwoods.com
• http//www.indiangaming.org/info/pr/press-releases
  -2006/NIGA-Gaming-Survey-2006.pdf

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National Gambling Impact Study Commission

• Commission
• Signed into law in 1996 to study social and
  economic impacts of gambling in the United States
• Two-year study

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Focus of Commission

• Commission (cont.)
• Review existing policies
• Relationship
• Gambling and crime
• Assess problem gambling
• Review impact on society
• Determine how gambling affects revenue to
  government
• Study interstate and international effects of
  gambling by electronic means

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Size and Scope

• Growth
• Publicly traded companies is 45
• Public acceptance
• People like to wager
• More demand than supply
• Aided economic growth in states
• Taxes
• Capital investment

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Controversy

• Controversy
• Dislike of gaming
• Moral beliefs
• Social costs
• Organized crime
• Street crime
• Gambling addictions

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Key Players Mirage Resorts

• Mirage Resorts
• Treasure Island
• Golden Nugget
• Monte Carlo
• Bellagio
• Soon to be in Atlantic City

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Key Players Harrahs Entertainment

• Harrahs Entertainment
• Reno, Lake Tahoe, Las Vegas, and Laughlin NV
• Atlantic City, NJ
• Riverboat and dockside casinos
• Native American Casinos
• http//www.harrahs.com/

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Key PlayersHilton Hotels Corporation

• Hilton Hotels Corporation
• Purchased Bally Entertainment
• Las Vegas, Reno, and Laughlin
• Atlantic City
• New Orleans riverboat
• Canadian casino

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Star Trek at Hilton Las Vegas

• Star Trek
• 70 million venture
• Targets
• Baby boomers
• Generation X
• Simulation ride
• Television screens

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Key Players

• Players
• Caesars World hotel/casinos
• Las Vegas, Lake Tahoe
• Atlantic City
• Circus Circus Hotel
• Owns hotels and casinos in three states

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Luxor Owned by Circus Circus

• Luxor
• Based on Egyptian pyramid
• Worlds largest atrium
• 4500 hotel rooms
• Thrill seeking rides
• Museum

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Excalibur Owned byCircus Circus

• Excalibur
• Based on medieval period of time
• 4000 hotel rooms
• Evening jousting matches

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Key PlayersMGM Grand

• MGM Grand
• 113 acres
• 5034 hotel rooms
• City of Entertainment
• Six-story lion entry

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New Players

• New Players
• Boyd Gaming
• 10 gaming and hotel facilities in 4 states
• Grand Casinos
• Develops, constructs, and manages land-based and
  dockside casinos
• New York New York Casino
• Sands Venetian Resort

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Big Names in Las VegasStatus as of July 2004

•  
• 1) Kirk Kerkorian
• MGM Mirage purchased that off Steve Wynn
• MGM Grand 5034 rooms
• Mandalay Resort Group
• 2) Steve Wynn
• Bellagio
• Mirage
• Treasure Island
• Wynn http//www.wynnlasvegas.com/
•  

• 3) Sheldon Adelson
• Venetian
• Sands Inc.
• Anti union stance has made him a little
  unpopular uses an armed escort of ex-Mossad
  Israeli intelligence agents
• 4) Gary Loveman
• Former Harvard Business School professor
• Harrahs Entertainment now owns Caesars
  Entertainment worlds biggest casino operator
•  

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Careers in Gaming Entertainment

• Careers
• Hotel operations
• Food and beverage operations
• Casino operations
• Retail operations
• Entertainment operations

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Trends in Gaming Entertainment

• Trends
• Merging frenzy
• Look at entertainment for profit growth
• Hotel room inventory in gaming properties is
  expanding
• Continued scrutiny by government
• Exceptional service quality is key to success
• Great management opportunities for students