Chapter 12 Gaming Entertainment

1. Chapter 12Gaming Entertainment

2. 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

3. Gaming Entertainment Defined • 432 casinos in 11 states • Commercial and Native American casinos • Card rooms • Charitable games • Lottery operated games • Wagering on greyhound and horse races

4. 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

5. 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

6. Who is the Guest? • Increasing acceptance by all consumers • 32% of US households gamble in casinos • Younger players • White-collar jobs • Wants total entertainment experience

7. History of Gaming • 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

8. The Move to 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

9. Native American 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

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

11. Key Players Harrah’s Entertainment • Harrah’s Entertainment • Reno, Lake Tahoe, Las Vegas, and Laughlin, NV • Atlantic City, NJ • Riverboat and dockside casinos • Native American Casinos

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

13. Star Trek at Hilton, Las Vegas • $70 million venture • Targets • Baby boomers • Generation X • Simulation ride • Television screens

14. Key Players • Caesars World hotel/casinos • Las Vegas, Lake Tahoe • Atlantic City

15. Key PlayersCircus Circus • Owns hotels and casinos in three states

16. Luxor Owned by Circus Circus • Based on Egyptian pyramid • World’s largest atrium • 4500 hotel rooms • Thrill seeking rides • Museum

17. Excalibur Owned byCircus Circus • Based on medieval period of time • 4000 hotel rooms • Evening jousting matches

18. Key PlayersMGM Grand • 113 acres • 5000 hotel rooms • “City of Entertainment” • Six-story lion entry

19. 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

20. Careers in Gaming Entertainment • Hotel operations • Food and beverage operations • Casino operations • Retail operations • Entertainment operations

21. 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