Introduction to hospitality
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Virginia Stipp Lawrence, MHM. Introduction to Hospitality. The Gaming Entertainment Industry. Gaming Entertainment Defined. We are just going to talk about one segment of the gaming industry, the casino industry. The Casino business is now known as GAMING ENTERTAINMENT.

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Introduction to hospitality

Virginia Stipp Lawrence, MHM

Introduction to Hospitality

The Gaming Entertainment Industry


Gaming entertainment defined

Gaming Entertainment Defined

  • We are just going to talk about one segment of the gaming industry, the casino industry.

  • The Casino business is now known as GAMING ENTERTAINMENT.

  • What other business are included in the gaming industry?

  • $500 BILLION is wagered or bet on games or races every YEAR!!!

  • In 1976, there were only 2 gaming jurisdictions in the US. How many do you think that there are now?


Updated notes

  • Gaming entertainment refers to the gaming business & all of its aspects.

    • What are these aspects?

  • What is next in importance to customers after the gaming floor?

  • Gaming revenues in Las Vegas have been declining for the last 20 years.

  • 32% of US households gamble in casinos.

  • 90% of US adults say that casino entertainment is acceptable for themselves or others.

  • Casino players tend to have higher levels of income & education & are more likely to hold white collar jobs.

  • Gaming entertainment operators are becoming more retail driven.

  • The average visitor stays in Las Vegas 3.7 nights, budgets $580 for gambling, spends $58 a night for lodging, $111 for food & drink, $63 on shopping, $27 on shows & $7 on sightseeing.

  • The average bet on table games is $12.


What is gaming entertainment

What is Gaming Entertainment?

  • 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


History of gaming entertainment

History of Gaming Entertainment

  • Las Vegas is second only to who as the favorite vacation destination in the US?

  • From the early 1940’s to 1976, Vegas had a monopoly on the casino business.

  • Back then, a slot machine or a blackjack table was enough to attract guests to the operation.

  • Legalization & control of gambling is a matter for state governments.

  • In November of 1976, New Jersey voters passed a referendum to allow gambling in their state.

  • 13 years later, Iowa legalized riverboat gambling.


The size scope

The Size & Scope

  • As of 2000, there were four large casino operators: Park Place Entertainment, MGM Grand, Harrah’s Entertainment & Mandalay Resort Group.

  • Gaming entertainment pays more than $2 billion per year for gaming privilege taxes.

  • Casino gaming relies more heavily than most industries on domestic labor & domestic suppliers.

  • Casino gaming has created more than 700,000 jobs with wages of approximately $21 Billion.


Key players

Key Players

  • Mandalay Resorts

    • Casinos primarily in Vegas including the Luxor, Mandalay Bay and Excalibur

  • Harrah’s Entertainment

    • Operates casinos in major gaming markets including Reno, Lake Tahoe, Vegas, etc. Also riverboats.

    • Operates 700,000 square feet of gaming floors, 6,500 hotel rooms & 50 restaurants.

  • Hilton

    • With its $3 Billion purchase of Bally Entertainment, it is the nation’s largest gambling business.

  • Circus Circus

    • Owns 9 casinos in Nevada including the Excalibur & the Luxor.

  • MGM Grand/ Mirage

    • Operates the world’s largest casino/hotel, MGM. Mirage, Treasure Island, the Golden Nugget & the Monte Carlo. (MGM was just sold –2002)

  • Bellagio and Steve Wynn


New players

New Players

  • Boyd Gaming

    • 10 gaming and hotel facilities in 4 states

  • Grand Casinos

    • Develops, constructs and manages land-based and dockside casinos

  • New York, New York Casino

  • Sands Venetian Resort


Positions in gaming entertainment

Positions in Gaming Entertainment

  • Hotel Operations

    • Much like those in the full-service hotel industry.

    • Rooms & guest services departments offer the most opportunities for students.

    • Dept heads have a large number of supervisors & more responsibilities.

  • F & B Operations

    • Some of the best foodservice operations are found in gaming entertainment operations.

    • Many career opportunities in restaurant management & culinary arts.

    • Most gaming entertainment properties house numerous F & B outlets.


Casino operations

Casino Operations

  • Casino Operations

    • There are 5 functional areas including:

      • Gaming Operations Staff

      • Casino Service Staff

      • Marketing Staff

      • HR Staff

      • Finance & Administration Staff

  • Retail Operations

    • Store Design & Layout, Merchandising, Sales Control.

  • Entertainment Operations

    • Some productions shows cost $30 - $40 Million to produce & require large production staff.

    • Stage & Theater Staff, Lighting & Box Office Management & Talent Management & Booking.


Casino terms

Casino Terms

  • Handle ~ total amount bet or wagered

  • Win ~ net amount retained by the casino – estimated at $48 billion/yr.

  • Pit ~ grouping of tables under one supervisor/manager

  • Markers ~ form used to extend credit to a guest

  • Player ~ a guest or client

  • Cage ~ Cashier cage where the chips and cash are stored

  • Fill/Credit Slips ~ Slips used to bring table banks to par


Casino gambling

Casino Gambling

  • Slot machines and games of chance

    Slot machines – American invention

    Must pay off at 84%

    High volume machine may pay 98%

    Play maximum number of coins for greatest payoff

    Very addictive

    Where legal will be found everywhere

    Most profitable for casino

    Casino take relatively high

    Not much labor needed

    No dealers needed

    Change makers, maintenance


Games of chance

Games of Chance

Blackjack

Most popular table game

Player with skill might have slight edge on house

Poker

Also involves skill, May play several different versions

Baccarat

High dollar game- Add up to nine

Must bet on bank or player in advance

Roulette

Ball spinning around a wheel and landing on a number

Craps or dice

Fast, exciting, high stakes

Hard to operate – takes 4 people

Keno

Like bingo but pick numbers in advance


Regulation

Regulation

To deter cheating and improve image

  • State gaming commissions

  • Sets and enforces rules

  • Quality – how managed and maintained

    Public space – follow zoning and fire laws

  • Credit procedures – varies

  • Game rules – must be published

  • Lay out – based on square footage

  • How many and what kinds of games can be played

  • Accounting procedures – cash flow records

    How, when, who collects cash and counts

  • Employees garments – no pockets or openings

  • Owners and employees must be licensed

    Owners very thorough check

  • Employees personal history


Casino hotels

Casino Hotels

  • A casino with at hotel attached-many want this!

  • Most notable difference is organization and management

  • In casino hotel, rooms is subordinate to gaming

  • Casino manager will be equivalent to or above general manager

  • Control system different because of the amount of cash

  • Many checks and balances


Service operations

Service operations

  • Entertainment and food important part of gambling

  • Casino hotels even more labor intensive (3 or 4 X higher)

  • Elaborate entertainment

  • Multiple dining facilities

  • All night service


Casino staff

Casino Staff

Croupiers or dealers – conduct table games

Fast and friendly

Manual dexterity and math skills

Screened for honesty and under electronic surveillance

Average salary $30,000 plus tips

Floor people

Supervise dealers

Enforce proper dealing procedures

Resolve disputes

Watch for cheaters

Usually supervise 2-4 tables, Reports to pit boss

Pit boss

Manages larger group of tables

Pays special attention to tables with high action

Makes sure those placing large bets are happy

Shift manager

In charge of casino

High pressure job – work six to eight hours

$1M hour in bets, $1M profit per day


How do you work in a casino

How do you Work in a Casino?

  • Employers are looking for people who have enthusiasm, those who can work well with people. This is the entertainment business, not a straight gambling business anymore. It's more like you're throwing a party for the people who are coming in. You've got to be good at entertaining.


Updated notes

  • The jobs [being a dealer] themselves are simple to learn. You can be a professional dealer after a month or two, making close to $100 a day at some of the new places. You just give the customers a lot of service, try to be funny, or amusing, or keep it light.

  • You start out at one of the break-in places off the Strip and work your way up to better-paying jobs as you gain experience. However, at some of the new casinos they are opening in other parts of the country, they train their own people [at the company's training school].


Dealer school

Dealer School

  • Most gaming schools offer flexible schedules, with day and evening classes. Admission requirements are also similar, with classes running from approximately four weeks for poker to about twelve weeks for craps.

  • Depending on the length of the class and game procedures being taught costs vary from $500 for a short session on blackjack dealing to $2,000 or more for extensive craps training.

  • All states mandate that enrollees must be at least 21 years old by the date they are scheduled to graduate from the dealer school. You must be 21 or older to work in Nevada's casinos.


Updated notes

  • Surveillance jobs are very low paying compared to other casino jobs. They only pay about $10–$12 an hour. It's a good job if you are going to school and want to study at night.


Updated notes

  • One of the best jobs to have in the casino is that of host or in casino marketing. That's the person who handles giving out comps, the free passes and extra perks


Updated notes

  • From dealer, the next step up is that of floorperson or floor manager. The interesting thing is if you take a job as a floorperson, even though it's a promotion, you usually are taking a cut in pay. Floor managers don't make as much as dealers because they are no longer getting tips. From floorperson the next step up is pit boss then shift boss then casino boss. It's usually a ten-year process to make it to casino boss, but definitely worth it if you want to make a career out of working in this industry.


Casino customers

Casino Customers

  • Grind players

    • Come on budget

    • When money is gone, they leave

    • Gaming a source of entertainment

  • High end players (high rollers and whales)

    • Chance to experience meaningful risk, big thrill

    • May bet $25,000-$500,000 at a time-Expect to suffer big losses at times

    • Minimize losses by negotiating with casino where they play regularly

    • Gifts, free guestrooms, free food

    • May be worth 50% of what they lost

    • May have personal representatives that negotiate terms in advance

    • Casino division reimburses rooms and food division for any rooms or food and beverage that are given away

    • Source of tension – price casino charged, guestroom inventory

    • Must save some for last minute arrivals

      • Don’t want to have empty rooms


Impact of gaming

Impact of Gaming

  • Economic

    • Tourism, Purpose of casinos

    • Employment opportunities

    • Increase state revenues

    • Attract visitors

  • May not necessarily benefit

    • Atlantic City not improved

  • Social

    • Part of culture through the ages

    • Often associated with dishonesty and immorality

  • Concerns

    • Environment

    • Smoke

    • Back rooms

    • Women

    • Drinking

  • Do you want this in your community?

    • Boils down to social vs economic


Technology of gaming

Technology of Gaming

  • The boundaries of casino technology are most visible in three areas: new gaming devices, visual surveillance systems, and customer data mining.

  • technical innovation in surveillance, both visual and behavioral


Visual surveillance

Visual Surveillance

  • . The first casino surveillance systems were completely non-electronic. Games managers merely observed players and dealers from catwalks over the action.

  • With the development of closed circuit television and video recording technology, though, surveillance was able to become both a way to detect malfeasance and to preserve a record of it for future legal action.

  • More recently, breakthoughs in digital imaging technology, including facial recognition systems, have pushed casino surveillance to the forefront.


Behavioral surveillance

Behavioral Surveillance

  • Behavorial surveillance or data mining is another area where casinos have excelled.

  • Harrah's groundbreaking Total Rewards program is still the model for other similar player cards programs

    • It enables casino personnel to not only track what players are spending, but chart what they potentially could be dropping in the casino. This lets them create parameters for their marketing efforts and, hopefully, allows them to get more mileage out of complimentaries.


Trends in the lodging industry

Trends in the Lodging Industry

  • Gaming entertainment is depending less on casino revenue.

  • Room inventory is rapidly increasing.

  • Gaming entertainment will continue to be scrutinized by government & public policy makers.

  • Exceptional service quality will become an increasingly important competitive advantage for success.

  • Gaming entertainment will continue to provide management opportunities.


Updates and what is coming up

Updates and What is coming up

  • Homework-be sure to check the Assignments

  • Next Week

    • Dream Design Project

      • Travel and Tourism

      • Food and Beverage

      • Hotels and Lodging

      • Meeting and Event Planning


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