Transcript The Gaming Entertainment Industry

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The Gaming Entertainment
Industry
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©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Gaming Entertainment Defined
• Gaming Entertainment…
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Commercial and Native American casinos
Card rooms
Charitable games
Lottery operated games
Wagering on greyhound and horse races
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Gaming Versus Gambling
• Gaming entertainment…
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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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Who Is the Guest?
• Guests…
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Increasing acceptance by all consumers
32% of U.S. households gamble in casinos
Younger players
White-collar jobs
Wants total entertainment experience
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Focus of Commission
• Commission (cont.)…
– Review existing policies
– Relationship
• Gambling and crime
– Assess problem gambling
– Review impact on society
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Focus of Commission
• Commission (cont.)…
– Determine how gambling affects revenue to
government
– Study interstate and international effects of
gambling by electronic means
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Size and Scope
• Growth…
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Publicly traded companies is 45
Public acceptance
People like to wager
More demand than supply
• Aided economic growth in states…
– Taxes
– Capital investment
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Controversy
• Controversy…
– Dislike of gaming
• Moral beliefs
– Social costs
• Organized crime
• Street crime
– Gambling addictions
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Key Players
Mirage Resorts
• Mirage Resorts…
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Treasure Island
Golden Nugget
Monte Carlo
Bellagio
Soon to be in Atlantic City
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Key Players
Hilton Hotels Corporation
• Hilton Hotels Corporation…
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Purchased Bally Entertainment
Las Vegas, Reno, and Laughlin
Atlantic City
New Orleans riverboat
Canadian casino
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Star Trek at Hilton Las Vegas
• Star Trek…
– $70 million venture
– Targets
• Baby boomers
• Generation X
– Simulation ride
– Television screens
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Key Players
• Players…
– Caesars World hotel/casinos
– Las Vegas, Lake Tahoe
– Atlantic City
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Key Players
Circus Circus
• Circus Circus Hotel…
– Owns hotels and casinos in three states
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Luxor Owned by Circus Circus
• Luxor…
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Based on Egyptian pyramid
World’s largest atrium
4500 hotel rooms
Thrill seeking rides
Museum
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Excalibur Owned by
Circus Circus
• Excalibur…
– Based on medieval period of time
– 4000 hotel rooms
– Evening jousting matches
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Key Players
MGM Grand
• MGM Grand…
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113 acres
5000 hotel rooms
“City of Entertainment”
Six-story lion entry
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Careers in Gaming Entertainment
• Careers…
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Hotel operations
Food and beverage operations
Casino operations
Retail operations
Entertainment operations
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker