Chapter 13 Gaming Entertainment

1. Chapter 13 Gaming Entertainment • Gaming Entertainment • Historical Review • Size and Scope of Gaming • Key Players • Positions in Gaming • Trends

2. Gaming Entertainment • The casino industry is one subset of the gaming industry. • There are 445 casinos in 11 states, including: • Land-based and Riverboat Casinos. • Card Rooms. • Charitable Games. • Lottery-operated Games. • Greyhound and Horse Races.

3. Definitions • Handle: Total amount of all bets. • Win: The net amount of spending by the customer. • Cruise to nowhere: Gaming and entertainment onboard the ship are the main attraction.

4. 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.

5. Who is the Guest? • 54.1 million U.S. households gamble in casinos (more than a quarter of all households). • More than 80% of U.S. adults say casino entertainment is acceptable for themselves or others. • Higher levels of income and education. • More likely to hold white-collar jobs.

6. Historical Review of Gaming • Today the precise origin of gambling is still unknown. • There are Chinese records that date the first official account of the practice as far back as 2300 BC. • A public gambling house was legalized for the first time in 1626 in Venice, Italy. • Romans were also gamblers. • They placed bets on chariot races, cockfights, and dice throwing.

7. Historical Review of Gaming • The gaming entertainment business has its roots in Las Vegas. • From 1940 to 1976 Las Vegas was a monopoly for gaming. • Las Vegas is rich with tales of Bugsy Siegel. • The gaming industry has exploded from just two jurisdictions in 1976 to a presence, through some form of legal gambling, in 48 states. • Only two states, Hawaii and Utah, do not permit some form of gambling.

8. Native American Gaming • The fastest growing sector of casino gaming. • In 1987, the Supreme Court determined if a state has gaming, so can 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.

9. Size and Scope of Gaming • As public acceptance of legalized gaming has grown, state and local governments have permitted gaming entertainment establishments to open. • The gaming entertainment industry pays billions of dollars per year in gambling privilege taxes to state governments. • Casino gaming companies pay an average of 12% of total revenues in taxes.

10. Key Players • MGM Mirage Resorts: • Now controls half of the Las Vegas Strip. • Properties include: • The Bellagio. • MGM Grand Las Vegas. • The Mirage. • Treasure Island. • New York–New York. • Boardwalk Hotel and Casino • Plus several others.

11. Key Players • Harrah’s Entertainment: • Partnered with Caesers Entertainment. • Now the world’s biggest casino operator. • Operates 40 casinos in 3 countries. • A $1.5 billion company publicly traded on the New York Stock Exchange. • Boyd Gaming: • 18 gaming and hotel facilities in 6 states.

12. Positions in Gaming Entertainment • Hotel operations: • Much like the career opportunities in the full-service hotel industry, with the exception that food and beverage can be a division of its own and not part of hotel operations. • Food and beverage operations: • High-quality food and beverage service in a wide variety of styles and concepts. • Some of the best foodservice operations in the hospitality industry are found in gaming entertainment operations. • Many career opportunities in restaurant management and the culinary arts.

13. Positions in Gaming Entertainment • Casino operations: • Gaming operations. • Casino service. • Marketing. • Human resources. • Finance and administration.

14. Positions in Gaming Entertainment • Retail operations: • Increased emphasis on non-gaming sources of revenues in gaming entertainment business demands an expertise in all phases of retail operations. • From store design and layout to product selection, merchandising, and sales control.

15. Positions in Gaming Entertainment • Entertainment operations: • Because of the increased competition, gaming entertainment companies are creating bigger and better production shows to turn their properties into destination attractions. • Career opportunities exist in stage and theater production, lighting and box office management, talent management and booking.

16. Figure 13-1 A Career Path in the Gaming Industry

17. Trends • Gaming entertainment is depending less on casino revenue and more on room, food and beverage, retail, and entertainment revenue for its profitability and growth. • The gaming entertainment industry and lodging industry are converging as hotel room inventory is rapidly expanding in gaming entertainment properties. • Gaming entertainment will continue to be scrutinized by government and public policy makers.

18. Trends • As the gaming entertainment industry becomes more competitive, exceptional service quality will become an increasingly important competitive advantage for success. • The gaming entertainment industry will continue to provide management opportunities for careers in the hospitality business.