1. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter 15 FUTURE OF GAMING Chris Roberts University of Massachusetts

2. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Changing Cycles of Gaming in History Rose theorizes gaming is cyclical: Governments need money; they look to gaming. Gaming popularity increases, levels of addiction, crime, and other social problems increase. The population cries out for de-regulation, and gaming is outlawed. Rose forecast a complete ban on legalized gaming by 2029.

3. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Differences suggest that history will not repeat; key among these are: Physical structures of the gaming facilities Tendency for entire communities to support gaming Large numbers of jobs in the industry Immense sums of capital invested Broad economic and public policy impact in terms of taxes and jobs Popularity of internet gaming, professional sports The integration of gaming into contemporary society

4. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Different Conditions Physical Structures Differ three ways from the past : First, whole communities have developed around gaming. Second, the typical casino has grown from an intimate boutique into a very large hall. Third, the casino has become integrated with several other industries in the delivery of the gaming product. - Most commonly, these other products include hotels, restaurants and retail shops.

5. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Human Resources Casinos employed more than 350,000 by 2004 Capital Investment and Ownership Capital committed to the industry is staggering. Casinos bring major investment to communities. Tax burden on businesses rather than residents. Publicly held ownership resulted in: - Professional, corporate management - Transition from images of sin, sex, and the mafia to modern entertainment destinations; safe, clean and fun for individuals and families

6. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Economic Impact In 2004, gross gaming revenues were $29 B. State and local areas improved their overall economic situation after allowing casinos. Foxwoods pays the state of Connecticut a percentage of their monthly slots revenue in the range of $50–$60 million. Indirect spending in related industries further increased totals. (Called the multiplier effect ). In states allowing gaming: employment percentages increased; additional tax dollars are being used for education and infrastructure.

7. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Rise of the Internet and Professional Sports Betting There are 1,800 virtual casinos Internet gambling is illegal in the U.S. Government entities are powerless to reasonably enforce the law Providers avoid U.S. legal concerns by basing their operations in other nations Other issues: Collection of bets Payment of winnings Determining identity and age of a bettor

8. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Accompanying interest in professional sports is the rise of sports betting. Nevada is only state to legalize sports betting. Betting on sports has become common. Newspaper sport sections cite “odds” of various events by well-known professional gamblers. Casinos outside of Nevada often provide areas for customers to contemplate sports bets even though the casino does not take the bet. Size of underground economy in sports betting is incalculable. Has increased levels of acceptance of gambling.

9. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Nature of Contemporary Culture Citizens generally believe gambling is acceptable as long as minors are protected. Government approval and widespread geographic availability contribute to high levels of acceptance. Social upheavals of the late 1960s and early 1970s dramatically altered definitions of acceptable behavior. If a jurisdiction bans gaming, customers can move to another area that permits it. Fear of gambling addiction is waning as our understanding of it develops.

10. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Rise of Native American Gaming Native American gaming is a mainstay for many tribes – and for their non-Indian customers. Foxwoods and Mohegan Sun, the largest and second largest casinos in the world, are tribal. Casinos have become important vehicles of economic development and employment. Since reservations are often located away from cities, some casinos are small with small profits. Many reservations have no casinos, believing it is immoral or inappropriate for their culture.

11. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Hashimoto: Casino Management: A Strategic Approach © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. The Future Forecast Forecast: continued institutionalization. Will experience ebb and flow cycles. Governments who rely on tax revenues and increases in employment from gaming will continue their support. Regulation will be crafted with care, as it will directly impact state coffers. NIMBY (not in my back yard) will certainly continue as an argument against the industry. Gambling in virtual casinos will continue to be widely available.