Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Chapter 12 Gaming Entertainment

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ History of Gaming 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Key Players Mirage Resorts Mirage Resorts Treasure Island Golden Nugget Monte Carlo Bellagio Soon to be in Atlantic City

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Key Players Hilton Hotels Corporation Hilton Hotels Corporation Purchased Bally Entertainment Las Vegas, Reno, and Laughlin Atlantic City New Orleans riverboat Canadian casino

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Star Trek at Hilton, Las Vegas $70 million venture Targets Baby boomers Generation X Simulation ride Television screens

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Key Players Caesars World hotel/casinos Las Vegas, Lake Tahoe Atlantic City

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Key Players Circus Circus Owns hotels and casinos in three states

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Luxor Owned by Circus Circus Based on Egyptian pyramid World’s largest atrium 4500 hotel rooms Thrill seeking rides Museum

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Excalibur Owned by Circus Circus Based on medieval period of time 4000 hotel rooms Evening jousting matches

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Key Players MGM Grand 113 acres 5000 hotel rooms “City of Entertainment” Six-story lion entry

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ Careers in Gaming Entertainment Hotel operations Food and beverage operations Casino operations Retail operations Entertainment operations

Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 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