© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Chapter 12 Gaming Entertainment

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Definitions Handle:  What the consumer bets (wagers)  $500 billion Win:  Gross gambling revenue  $48 billion Casinos count for half of U.S. gaming dollars

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Who Is the Guest? Increasing acceptance by all consumers 32% of U.S. households gamble in casinos Younger players White-collar jobs Wants total entertainment experience

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition History of Gaming Precise origin is unknown Ancient games of chance can be documented in China and Rome 17th century casino-style gaming clubs existed in England, Italy, and Central Europe The Bellevue opened August 10, 1901

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Las Vegas Mobster Bugsy Siegel influence Gambling legalized in 1931 From 1940–1978, Las Vegas was a monopoly for gaming:  No hotel rooms  No entertainment Gaming Control Board and Nevada Gaming Commission

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Important Notes Donald J. Trump’s role in Atlantic City casino industry Pennsylvania Slot Law Pennsylvania State Gambling Commission

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition The Big Four Key Players in Gaming Caesars Entertainment, Inc. MGM Grand, Inc. Harrah’s Entertainment, Inc. Mandalay Resort Group

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition MGM Grand, Inc. 113 acres 5,000 hotel rooms “City of Entertainment” Six-story lion entry

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Harrah’s Entertainment, Inc. Reno, Lake Tahoe, Las Vegas, and Laughlin, NV Atlantic City, NJ Riverboat and dockside casinos Native American Casinos

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Hilton Hotels Corporation Purchased Bally Entertainment Las Vegas, Reno, and Laughlin Atlantic City New Orleans riverboat Canadian casino

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Other Key Players — Mirage Resorts Treasure Island Golden Nugget Monte Carlo Bellagio Soon to be in Atlantic City

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Circus Owns hotels and casinos in three states

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Luxor, Owned by Circus Circus Based on Egyptian pyramid World’s largest atrium 4,500 hotel rooms Thrill-seeking rides Museum

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Excalibur, Owned by Circus Circus Based on medieval era 4,000 hotel rooms Evening jousting matches

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Careers in Gaming Entertainment Hotel operations Food and beverage operations Casino operations Retail operations Entertainment operations

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Trends Less dependence on casino revenue and more on food, beverage, room, and retail profit centers Hotel room inventory in gaming properties is expanding Continued scrutiny by government Increased competition between properties Great management opportunities for students