Chapter 12 Gaming Entertainment Introduction to Hospitality Fourth

Chapter 12 Gaming Entertainment Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to: n n 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

Gaming Entertainment Defined n n n 432 casinos in 11 states Commercial and Native American casinos Card rooms Charitable games Lottery operated games Wagering on greyhound and horse races

Definitions n Handle n n n Win n What the consumer bets (wagers) $500 billion dollars Gross gambling revenue $48 billion dollars Casinos count for half of the U. S. gaming dollars

Gaming Versus Gambling n Gaming entertainment n n n n Casino floor (gambling) High-quality food and beverage Hotel rooms Live performances Theme park, theme rides and museums Land-based and riverboats Gambling n Playing a game of risk for chance of making money

Who is the Guest? n n n Increasing acceptance by all consumers 32% of US households gamble in casinos Younger players White-collar jobs Wants total entertainment experience

History of Gaming n n Gambling legalized in 1931 in Las Vegas From 1940 -1978 Las Vegas was a monopoly for gaming n n n No hotel rooms No entertainment Gaming Control Board and Nevada Gaming Commission

The Move to New Jersey n n n Gambling legalized in 1976 Looked at gaming to invest capital, create jobs, pay taxes and attract tourists Casino Control Act funded Casino Control Commission

Native American Gaming n n n 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) n n Provides framework for games Defines different “classes” of gaming

Key Players Mirage Resorts n n n Treasure Island Golden Nugget Monte Carlo Bellagio Atlantic City Now MGM-Mirage Resorts

Key Players Harrah’s Entertainment n n n n Reno, Lake Tahoe, Las Vegas, and Laughlin, NV Atlantic City, NJ Riverboat and dockside casinos Native American Casinos

Key Players Hilton Hotels Corporation n n n Purchased Bally Entertainment Las Vegas, Reno, and Laughlin Atlantic City New Orleans riverboat Canadian casino

Star Trek at Hilton, Las Vegas n n $70 million venture Targets n n Baby boomers Generation X Simulation ride Television screens

Key Players Caesars World hotel/casinos n Las Vegas, Lake Tahoe n Atlantic City n

Key Players Circus n Owns hotels and casinos in three states Now MGM-Mirage Resorts

Luxor Owned by Circus n n n Based on Egyptian pyramid World’s largest atrium 4500 hotel rooms Thrill seeking rides Museum Now MGM-Mirage Resorts

Excalibur Owned by Circus n n n Based on medieval period of time 4000 hotel rooms Evening jousting matches Now MGM-Mirage Resorts

Key Players MGM Grand n n 113 acres 5000 hotel rooms “City of Entertainment” Six-story lion entry Now MGM-Mirage Resorts

New Players n Boyd Gaming n n Grand Casinos n n n 10 gaming and hotel facilities in 4 states Develops, constructs and manages land-based and dockside casinos New York, New York Casino –now MGM-Mirage Sands Venetian Resort

Careers in Gaming Entertainment n n n Hotel operations Food and beverage operations Casino operations Retail operations Entertainment operations

Trends n n n 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