Transcript Chapter 13 Gaming Entertainment

Chapter 13 Gaming Entertainment
• Gaming Entertainment
• Historical Review
• Size and Scope of
Gaming
• Key Players
• Positions in Gaming
• Trends
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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.
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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.
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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?
• 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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Positions in Gaming Entertainment
• Casino operations:
– Gaming operations.
– Casino service.
– Marketing.
– Human resources.
– Finance and
administration.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Figure 13-1 A Career Path in the
Gaming Industry
Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.