1. Gaming and Casinos

2. History of Gaming  Earliest recorded gaming dates to China in 2300BC  Egyptian Pyramids – Dice  Greeks @ Troy  Romans @ Christ’s Crucifixion  Craps – Played by Knights

3. History of Gaming  In the US Gaming ebbs & flows Colonies – lotteries & cards Colonies – lotteries & cards Columbia, Dartmouth, Harvard, & Yale partly funded by lotteriesColumbia, Dartmouth, Harvard, & Yale partly funded by lotteries 1810 – New Orleans 1810 – New Orleans 1910 – Outlawed in the US 1910 – Outlawed in the US

4. History of Gaming  1931 – Nevada restores gaming Reno & Las VegasReno & Las Vegas 1935 Clubs began to appear 1935 Clubs began to appear 1946 the Flamingo Hotel & Casino – elegance & entertainment 1946 the Flamingo Hotel & Casino – elegance & entertainment Thirty years Las Vegas was the crown jewel of gaming Thirty years Las Vegas was the crown jewel of gaming

5. History of Gaming  1976 – Gaming approved in Atlantic City, NJ  1988 – Indian Gaming Regulatory Act – legal for Native Americans to open casinos on their properties in states where gambling is allowed. Foxwoods, CN, MN

6. History of Gaming By 1997 six states had legalized riverboat gaming IL, IA, MO, MS, TN, KY By 1997 six states had legalized riverboat gaming IL, IA, MO, MS, TN, KY FL, TX, & GA cruises to nowhere FL, TX, & GA cruises to nowhere Reinvention of Las Vegas Reinvention of Las Vegas 2001 only UT & HI without 2001 only UT & HI without

7. Factors Contributing to Growth in Gaming  Indian Gaming Regulatory Act of 1988  Legalization of riverboat gambling  Change in consumer attitude toward gambling  Accessibility of gambling facilities  Government needs for additional sources of taxes

8. Gaming Operations  Hotel operations are subordinate to gaming operations  In the hotel business the GM is King  In Casinos the President is King  Mktg., Finance, Security, Admin., all report to the President  F&B is often separate

9. Gaming Operations  Entertainment & F&B take on greater importance in a Casino Hotel  Gamblers travel on impulse  Gamblers vs. social gamers  32% of US households gamble  ½ Trillion dollars wagered annually  Casino Hotel 20% rooms, 11% F&B

10. Casino Games  Table Games Baccarat– 8 decks – vs. another player Baccarat– 8 decks – vs. another player Blackjack/21 – vs. house/rules 2.0% Blackjack/21 – vs. house/rules 2.0% Craps – most exciting – bet on the shooter ~ 1.4% Craps – most exciting – bet on the shooter ~ 1.4% Roulette – 36 #s; 0 & 00 ~ 5.26% Roulette – 36 #s; 0 & 00 ~ 5.26%

11. Casino Games  Slot Machines – Most profitable from the casino point of view Atlantic City – return 83% Atlantic City – return 83% Nevada – return at least 75% Nevada – return at least 75% Loose slots 99% Loose slots 99% Little labor involved Little labor involved

12. Casino Terms  Handle ~ total amount bet or wagered  Win ~ net amount retained by the casino – estimated at $48 billion/yr.  Pit ~ grouping of tables under one supervisor/manager  Markers ~ form used to extend credit to a guest  Player ~ a guest or client  Cage ~ Cashier cage where the chips and cash are stored  Fill/Credit Slips ~ Slips used to bring table banks to par

13. Casino Employees  Croupiers – AKA Dealers  Floor People – Supervise Croupiers (two to four tables)  Pit boss – manages a group of tables or a game  Games manager – responsible for table games  Shift Manager – Responsible for all casino ops during a shift

14. Casino Customers  Grind Players ~ gaming is entertainment  High-end Players – A different breed Casinos give them rebates, gifts, comp rooms, & F&B Casinos give them rebates, gifts, comp rooms, & F&B  Whales – highest of the high

15. Casino Controls  Lots of opportunity due to high level of cash and credit  Multiple checks and balances  Accounting Controls  Equipment Controls – Surveillance  Human Controls  Monitored by city, county, state, and federal governmental agencies