©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker CHAPTERCHAPTER CHAPTERCHAPTER 11 The Gaming Entertainment Industry

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Gaming Entertainment Defined Gaming Entertainment… –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 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 Introduction to Hospitality Management, First Edition John Walker 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

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Who Is the Guest? Guests… –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 Introduction to Hospitality Management, First Edition John Walker History of Gaming History… –Gambling legalized in 1931 in Las Vegas –From 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 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 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 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 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 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 Introduction to Hospitality Management, First Edition John Walker Size and Scope Growth… –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 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 Introduction to Hospitality Management, First Edition John Walker Key Players Mirage Resorts Mirage Resorts… –Treasure Island –Golden Nugget –Monte Carlo –Bellagio –Soon to be in Atlantic City

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 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 Introduction to Hospitality Management, First Edition John Walker Key Players Hilton Hotels Corporation Hilton Hotels Corporation… –Purchased Bally Entertainment –Las Vegas, Reno, and Laughlin –Atlantic City –New Orleans riverboat –Canadian casino

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 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 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 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 Introduction to Hospitality Management, First Edition John Walker Luxor Owned by Circus Circus Luxor… –Based on Egyptian pyramid –World’s largest atrium –4500 hotel rooms –Thrill seeking rides –Museum

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 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 Introduction to Hospitality Management, First Edition John Walker Key Players MGM Grand MGM Grand… –113 acres –5000 hotel rooms –“City of Entertainment” –Six-story lion entry

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 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 Introduction to Hospitality Management, First Edition John Walker Careers in Gaming Entertainment Careers… –Hotel operations –Food and beverage operations –Casino operations –Retail operations –Entertainment operations

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 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