The Casino Industry

The Las Vegas and Atlantic City locations have lost revenues in recent years. In addition to the economic slowdown, these gambling locations are also facing new competitors in the market that are providing attractive choices to the customers. Though there are some external forces beyond their control, it seems that attractiveness and accessibility are very important focus areas for these cities.

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

The growing industry of gambling creates revenue from taxes, but is it really profitable? Smith-Christopher claims “the total amount accounts for less than a quarter of the gambling industry revenues nationwide each year.” It can be said that gambling can help economic progress, “Nearly half of all tribal gaming enterprises earn less than $10 million in annual revenue, and one-quarter earn less than $3 million each year. On the other end of the spectrum, about 40 tribal casinos (or about 1 in 10) take in two-thirds of all Indian gaming revenues” (Smith-Christopher). The economic benefits that gambling creates may outweigh the addictions it may create. Walker claims, “As gambling expands, the gambling industry and government are beginning to

Gambling has been around for quite some time. Initially outlawed, it became legal in 1931 and it has been an interesting road from there. The ringing of slot machines, winning at bingo or poker has become an addiction of sorts, to people of different races and cultures. And Native Americans have not been left out either.

People tend to spend their money mostly on the slot machines and multiple poker games taking place in the Casinos around the United States. These revenues go towards the workers of the Casinos and state taxes which benefits the other attractions surrounding the casino. The gambling industry has grown massively in little time, it has grown to make around 40 billion dollars a year. Generating this money contributes largely to make a better city or state for visitors or residents to enjoy. These casinos are usually looked down upon but they offer new horizons for men and women in the United States. The online gambling push is also coming to a close consideration with legality and within the next ten years should be completely legal (Bonesteel 1). Online gambling provides a different dimension of many businesses and also sports clubs. Most of the money from online sports gambling goes towards these sports clubs allowing them to expand their club and the league as one. As gambling begins to grow considerably larger in the United States, it is used as entertainment and recreation. As a whole, gambling allows any given city to grow economically and as whole, it brings in plenty amounts of revenue which also contributes to state taxes.

As the casino industry brings in the community with income and tourism, there are more and more countries legalizing and liberalizing this industry. However, the expansion of the casino industry depends on the ability to grant credit to guest. In Nevada, the casino credit accounts for more than fifty percent of the revenue generated by games in the states larger casinos. (Auguilera, Rubinstein, and Reid, 2000) Steve Wynn Resort did not start to conduct the Wynn

In 2012 commercial casinos earned revenues of $37.3 billion, while Indian casinos had revenues of $27.9 billion. The American commercial casino industry directly contributed $8.6 billion in taxes and directly employed over 332,000 people in 2012. Whereas, Native American casinos are exempt from federal taxes, but individual Native Americans aren’t exempt from taxes. As a result, the Indian casino industry also contributes tremendous resources to the government. Although, it’s quite complex to calculate a direct comparison with commercial casinos. Casino City provides the only comprehensive annual report on the Indian casino industry and their report includes other variables, such as nongaming operations. Casino City concluded that Indian casinos employed, directly and indirectly, more than 679,000 people in 2012. That report also concluded that Indian gaming contributed $9 billion in taxes and revenue-sharing payments to federal, state, and local governments in the same

Casinos bring a local economy a new tax source and new jobs but it is crucial to look further to see if casinos boost the local economy. In one article the writers state the benefits of the new casino including new jobs and investment. Felsentein, Littlepage, & Klacik (2000) then explain that many casino jobs however require some specific training. This means many employees commute to work. Also some of local casino employees leave previous jobs in community to come work in the casino. The casino is not creating for the local economy if workers are commuting or leaving old jobs (Felsentein, Littlepage, & Klacik, 2000)

Finally, an increase in job opportunities is a strong motivator for the legalization of gambling and casino development in a time where jobs are hard to find. Jobs are created in all sectors from planners, construction workers, dealers, table workers, cooks and kitchen staff, bartenders, wait staff, security, hotel staff, event coordinators, etc. Financial reasons are the most discussed reasons for the advocacy of legalizing gambling and casino development.

The development of tribal casinos or what is commonly referred to as organized gambling can be credited to Native American reservations. Gaming operations have brought phenomenal success to many native tribes in America, and there has been a new dimension to the existing debate regarding Native American sovereignty in organized gambling. There are over 310 casinos ran by about one-third the nations federally recognized tribes, and generate around $10 billion in revenue which is one-sixth of all revenue generated through legal gaming in the country (Evans, Topoleski, 2002). Many of the tribes are now able to provide for themselves essential services rather than wait for the government. However, most

In the early 1930s, gambling was legalized throughout the state of Nevada and casinos began to flourish (Dunstan, 1997). The economic growth in Nevada, especially the city of Las Vegas, has improved tremendously by the creation of casinos. Many people were employed since the operation of casinos requires a huge amount of labor, skill, and expertise. In addition, local retail sales also increased from casinos when gamblers visit the stores to spend their winnings on various items and products (Garrett, 2003). As a result, many state governments began to legalize casinos in order to boost their economies and increase employment. As of today, there are roughly 1500 casinos in the United States and they generate almost 65 billion dollars in revenue (“Facts on U.S Casinos” 2013). However, casinos use immoral methods to achieve this incredible feat of big profit with few government interventions. While the city of Las Vegas becomes more prosperous than before, many citizens lose their fortunes or even lives by the immoral business practices implemented by the casinos. Even though the

Adding to Native American casino fortunes, their casinos are likely to increase over the next few years. It is noted that several states are reaching agreements to allow the introduction or expansion of Native American casinos because of the additional revenues they can provide. This increases the Native American casinos opportunities and consitutes a high barrier for new entrants. The major source for this entry barrier is the cost disadvantage independent of scale regarding the favorable government polices vis -a -vis the Indian Gaming and Recration Act of 1988.

“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.

Gaming or gambling industry is clearly accelerating the transformation, and opportunities and challenges are mixed in the trend. The November 4th vote has given us a highly positive signal about the future of casino industry in Massachusetts, however, we still have to look into the trend and capitalize on this great chance.

I intend to evaluate the Casino Industry in Macau including the reasons for its high demand and growing success and compare it to the Casino Industry in Las Vegas.