1. Chapter 11: Gaming Entertainment

2. Chapter 11 Gaming Entertainment
Historical Review
Native American Gaming
Size and Scope of Gaming
Key Players
Positions in Gaming
Trends

3. 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

4. Definitions Handle: Total amount of all bets
Win: The net amount of spending by the customer
Cruise to nowhere: Gaming and entertainment on board the ship are the main attraction

5. 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

6. Who is the Guest?
54.1 million U.S. households gamble in casinos (more than one-quarter)
U.S. households make 371 million visits annually to casinos
Casino players tend to:
Have higher levels of income and education
Are more likely to hold white-collar jobs

7. 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 the third millennium B.C.
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

8. Historical Review of Gaming
The gaming entertainment business has its roots in Las Vegas
From , Las Vegas was a monopoly for gaming
Las Vegas is rich with tales of Bugsy Siegel
During the 1970s, Atlantic City was in an impoverished state experiencing high amounts of crime and poverty; in an effort to revitalize the city, New Jersey voters in 1976 approved casino gambling for Atlantic City
The gaming industry has exploded from just two jurisdictions in 1976 to some form of legal gambling in 48 states
Only two states, Hawaii and Utah, do not permit some form of gambling

9. Native American Gaming
In California v. Cabazon Band of Mission Indians, et al. (1987), the Supreme Court decided that once a state legalized any form of gambling, the Native Americans in that state have the right to offer and self-regulate the same games, without government restrictions
Indian Gaming Regulatory Act (IGRA):
Provides framework for games
Defines different “classes” of gaming
Today there are 354 gaming facilities on reservation lands in 28 states, and Native American gaming has been the fastest-growing sector of casino gaming in the United States

10. 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

11. 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 & Casino
Plus several others

12. Key Players Harrah’s Entertainment:
Paired up 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

13. 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

14. Positions in Gaming Entertainment
Casino operations:
Gaming operations
Casino service
Marketing
Human resources
Finance and administration

15. Positions in Gaming Entertainment
Retail operations:
Increased emphasis on nongaming sources of revenues
Gaming entertainment business demands an expertise in all phases of retail operations
From store design and layout to product selection, merchandising, and sales control

16. 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
Production shows have climbed into the $30-90 million range, with special entertainment venues built for superstars

17. Trends
Gaming entertainment is depending less on casino revenue and more on room, food and beverage, retail, and entertainment revenue
The gaming entertainment industry and lodging industry are converging as hotel room inventory is rapidly expanding
Gaming entertainment will continue to be scrutinized by government and public policy makers
As the gaming entertainment industry becomes more competitive, exceptional service quality will become increasingly important
The gaming entertainment industry will continue to provide management opportunities for careers in the hospitality business

18. The End