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Chapter 1 A PRELIMINARY EXPLORATION

Chapter 1 A PRELIMINARY EXPLORATION. Casino Management Kathryn Hashimoto, East Carolina University. INTRODUCTION. Americans gamble 7 times more than they purchase movie tickets In 2004 that amounted to : $29 billion 445 casinos in 11 states 350,000 jobs = $12 billion

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Chapter 1 A PRELIMINARY EXPLORATION

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  1. Chapter 1A PRELIMINARY EXPLORATION Casino Management Kathryn Hashimoto, East Carolina University

  2. INTRODUCTION • Americans gamble 7 times more than they purchase movie tickets In 2004 that amounted to: • $29 billion • 445 casinos in 11 states • 350,000 jobs = $12 billion • direct state and local casino taxes > $4.7M

  3. The History of Gambling • In Greek mythology, the oracle tossed the dice and the gods expressed their wishes. • Gambling developed as a pastime for the aristocracy. • In the Roman spas, betting on cards and dice was convenient and helped to while away the time.

  4. Introduction to Gambling • Gambling: to play or game for money; anything involving risk or uncertainty. • Casino: a specially designated facility (also called a house). Note: In this book, gambling discussions will be restricted to legal forms of gambling performed in a casino.

  5. The Three Categories of Commercial Casinos • Land-based: built on land, like those in Las Vegas and Atlantic City. • Riverboat: mainly on the Mississippi River, through the middle of America from north to south. • Native American: river-based or land-based; distinguished by ownership.

  6. Changing Attitudes Toward Gambling • 54% of Americans said gambling was acceptable for anyone. • 27% said while gambling was “not for them,” it was an acceptable form of entertainment for others. • 81% of adults agree that going to a casino is an acceptable form of entertainment for themselves and others.

  7. Why a change in attitude? • Partially from the positive economic impact that communities received. • Casinos pay taxes and fees far in excess of other industries. • Taxes were used to cover funding shortfalls for schools, road construction, and infrastructure improvements.

  8. The other side of the table –Who Are the Patrons? Compared to the average American adult a typical casino customer is: • More educated; more likely to hold a white collar job, have a higher income • More likely to engage in a variety of vacation, outdoor experiences • More likely to eat out • Three times more likely to go to a resort

  9. The Social Acceptance of Gambling A Cyclical Pattern

  10. External ForcesCannot be controlled by the industry.Have great impact on the way a casino does business. • Economic: cited as improving economic environment. • Social: perceived effects on the social environment – rise in crime, addiction, underage gambling. • Political & Legal: control the regulations and laws that govern what a casino can and can’t do. • Consumer Behavior: the way people buy or spend time. • Corporate Culture &Technology: management teams took over. Technological advances created a new way to make management decisions. • Historical Development/Changing Competitive Environments: as America grew, gaming grew.

  11. Internal EnvironmentsWhat is happening inside the casinos? • Product: How does the casino make money? • Organization: How do the layers of the organization change to meet the casino’s needs? • Pricing: What are theobjectives in filling casino hotels? • Location & Transportation: How does location impact buying decisions and how do people get from one place to another in the casino property? • Promotions: What is the message the casino wants to send?

  12. Other Questions • Should a new casino be a destination area or a day trip? • What kind of people should the casino attract? • Should a casino hotel use the hotel as an amenity? • Should the food service operate as a profit center? • Should government regulators try to prevent problems before they arise? • Do casinos create addicts? • What is the difference between gambling in a casino and gambling on the stock market?

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