1. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Chapter 13 Gaming Entertainment Gaming Entertainment Historical Review Size and Scope of Gaming Key Players Positions in Gaming Trends

2. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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.

3. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Definitions Handle: Total amount of all bets. Win: The net amount of spending by the customer. Cruise to nowhere: Gaming and entertainment onboard the ship are the main attraction.

4. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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.

5. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Who is the Guest? 54.1 million U.S. households gamble in casinos (more than a quarter of all households). More than 80% of U.S. adults say casino entertainment is acceptable for themselves or others. Higher levels of income and education. More likely to hold white-collar jobs.

6. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 2300 BC. 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.

7. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Historical Review of Gaming The gaming entertainment business has its roots in Las Vegas. From 1940 to 1976 Las Vegas was a monopoly for gaming. Las Vegas is rich with tales of Bugsy Siegel. The gaming industry has exploded from just two jurisdictions in 1976 to a presence, through some form of legal gambling, in 48 states. Only two states, Hawaii and Utah, do not permit some form of gambling.

8. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Native American Gaming The fastest growing sector of casino 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.

9. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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.

10. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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 and Casino Plus several others.

11. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Key Players Harrah’s Entertainment: –Partnered 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.

12. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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.

13. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Positions in Gaming Entertainment Casino operations: –Gaming operations. –Casino service. –Marketing. –Human resources. –Finance and administration.

14. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Positions in Gaming Entertainment Retail operations: –Increased emphasis on non-gaming sources of revenues in gaming entertainment business demands an expertise in all phases of retail operations. From store design and layout to product selection, merchandising, and sales control.

15. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. 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. –Career opportunities exist in stage and theater production, lighting and box office management, talent management and booking.

16. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Figure 13-1 A Career Path in the Gaming Industry

17. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Trends Gaming entertainment is depending less on casino revenue and more on room, food and beverage, retail, and entertainment revenue for its profitability and growth. The gaming entertainment industry and lodging industry are converging as hotel room inventory is rapidly expanding in gaming entertainment properties. Gaming entertainment will continue to be scrutinized by government and public policy makers.

18. Walker: Exploring the Hospitality Industry. © 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved. Trends As the gaming entertainment industry becomes more competitive, exceptional service quality will become an increasingly important competitive advantage for success. The gaming entertainment industry will continue to provide management opportunities for careers in the hospitality business.