Casino Industry Analysis

Gambling is becoming increasingly popular in today’s society. Major casinos and online gambling sites attract

This report seeks to examine and evaluate the gaming control practices implemented in Sands Hotel and Casino before exploring the possibilities of its application in other gaming casinos and industries.

Over the years, several researches have been conducted to study into gambling activities and as such many theories have come up to explain gambling and to give us a better understanding of the activity. The following are some of the theories that some scholars have come with up to explain gambling as well as related studies done on this subject matter.

Economic The Australian gambling market is remarkable in the world’s gambling industry. It has already been mature and showed a very strong growing momentum with 2.9% annually over the last five years, and it was predicted that the growth rate would be constant in a medium-term period. (Sudarsanam, 2011)There are four categories of gambling activities. Gaming is the largest type with the annual turnover over $10.2b, and other three types are Casino, wagering and lotteries, and the annual turnover was $3.2b, $2.6b and $2.1b respectively. (Sudarsanam, 2011)

The casinos at these resorts are crowded daily with adults who share the love and excitement of gambling responsibly. Guest at the hotels and resorts can also enjoy other options for entertainment like spas, shows, concerts, and dining. Guest can also enjoy playing a variety of free casino themed social games which is used for advertising the products and services at the casinos. Today the company is focused on building valuable relationships with their loyal customers to regain market share and boost competitiveness and profitability.

Casino, whether online or the operations of brick and mortar casinos, is considered a huge business. Each year, thousands of players play and try out some of the popular casino games, and win some of the best jackpots around, including the progressive jackpot offerings. Also, the success and viability of casinos can also be found in the profits of casinos, particularly the profits of brick and mortar casinos. Casinos are known to offer the best jackpots and cash prizes, and among these casinos, there are some that manage to rake in top revenues, making these the world’s biggest casino profits. Here are some casinos known for their biggest casino profits, and happy customers.

When neighboring states started to allow gambling in 2006, Atlantic City became less of a hot spot and – within the past two years – has shut down four casinos in the community. On top of that, residents complain about traffic, crime, and noise and air pollution, blaming the city life that casinos bring in. Running a business of this type is risky when the competition is high. And these days regional gaming is all about convenience and appeal, which Atlantic

The growing industry of online casinos today is a problem most rookie bettors face. With the overflowing list of casinos coming their way, it can be difficult to settle on a brand and narrowing the list down can be a demanding task. In addition to this, it is true that dangers in this industry are aspects that will never leave the minds of bettors, and these are elements all individuals must be aware of before engaging in any form of wagering.

The economic literature is quite broad and while there is extensive data on the effects of casino gambling, economists are still torn between the questions of if “A casino typically generates more benefits to society than costs” (Walker, 2013). While more economists believe that the costs outweigh the benefits, this paper will explore current economic findings of casino gambling and attempt to offer more understanding to the effects it has on the economy.

The Australian casino industry is a $5.7bn industry that boasts a healthy profit margin of almost 16%. However predictions for 2016 and onwards is for a return to modest growth of approximately 1.9% - down almost 40%. A mature industry with eight organisations, nearly 90% of its revenue is shared amongst its two largest players – Crown Resorts Limited (Crown) and Star Entertainment Group Limited (Start) (Little 2015). Although the core business is to do with gambling services, the major players also offer accommodation, entertainment, and hospitality services.

Although gambling predates documented history, how people gamble has continuously adapted to fit into the lives of different cultures all over the world. Those who choose to test the unknown by betting on a possible outcome are allowed to explore chance and take a controlled risk through an individual situation. Places that could bring people together to indulge in this experience were usually successful due to the vast amount of interest in the activity. The introduction of spas is the most important thing to know about gambling before 1900 because it marks the introduction of resort based gambling, demonstrates the politics of gambling, and sets the precedent for casinos even today.

As a gamer enters the extraordinary location of MGM Grand, located in the heart of Las Vegas, it is no wonder that most of their profitability comes from gambling. MGM Grand casino offers a multitude of games from blackjack, craps, roulette, slot machines, poker and more. Gaming profits are high in Las Vegas with the plethora of casinos available. The MGM Grand, not only is the second largest hotel in the world, but has one of the largest gaming floors in Las Vegas. However, the biggest question MGM Grand’s President and Chief Operating Officer, Gamal Aziz faces; how can the hotel advertise non-gaming entertainment to create more profitability? Understanding non-gaming customers has become a critical factor in the growth of MGM Grand. MGM Grand

Wynn Resorts, led by the romantic and visionary leader Steve Wynn, is a leader in the gaming and casinos industry. Following its mission statement of, “A commitment to providing an elegant environment, high-quality amenities, a superior level of service and distinctive attractions for our customers,” the company is well known for its luxury and excellence. Some major competitors in the Industry are MGM Mirage and Trump Entertainment Resorts. Fortune Magazine said that ”Wynn, which also led casino resort operators in 2009, ranked second in the hotel, casino and resort category for innovation and number 3 for people management, quality of management and quality of its products and services.” Wynn Resorts management strategy is that of focused differentiation. They create products and services that are unique and valued in which customers will pay a premium and they focus on an upper class segment. The company does well in management or in parenting, by using the experience of the corporate office and the support of the corporate office. Wynn Resorts does an excellent job in branding and is a big part of the company’s core competencies.

There is a steady growth rate in gaming revenues taking effect in the casino industy around the United States. A number of factors are tied into the increase including new entrants to the casino industry and rival casino expansions. Through aspects of Porter’s Five Forces Model of Industry Competion: Rivalry among existing firms, the threat of new entrants, and the threat of substitues, this case analysis addresses key problems the casio industry is facing and implements stratiges they may use to tackles thoses issues. In addition, SWOT analysis (Strengths, Weaknesses, Opportunites, and Threats) will be used to facilitate the discussion.

“The geographic location of a casino is a huge consideration” (Lewis pg. 1). Demographics, travel patterns and nearby competition play a significant part in casino design. “ Most people in North America live within a day’s drive of one or more gaming areas” (Lewis pg. 1), so in order to attract people to the casino there must be something other than the gaming floor to draw them in. Many amenity and non-gaming attractions must be considered in order to really stand out. The casino must design strong support facilities, a hotel that can accommodate as many players as it can afford, a parking system for the traveling patrons, non-gambling facilities for families and it must be an inviting space.