Jun 7, 2019 in Economics

Introduction

Casinos are simply establishments set up to enable people participate in different forms of gambling. This industry has brought in a lot of revenue worldwide although some states haven’t yet fully embraced it and this is mostly due to the negative perception associated with it. According to the statistics portal casinos bring in revenue of about $357 billion worldwide. Social casinos gamers are fast gaining popularity and the internet casino has been estimated to bring in about $3.4 billion from $2.2 billion in 2013 which goes to show how fast this industry is growing. 

 

The global casino industry brings in about $80 billion worth of revenue and has been steadily rising apart from the 2008 financial crisis it faced. However, it has since re-bounced from that as research shows that consumers are more willing to spend their money on leisure and entertainment. There is a trend of wealthy consumers having an ‘appetite’ for gambling and this is why they get into casinos. 

 

The key players in the global casino and gaming industry consist of the largest brand names and these are based in Hong Kong, Las Vegas and Macau. Studies show that Las Vegas SandsCorp (LVS) is the leading American Casino company although about 64% of its revenues are generated abroad. It is followed by Wynn Resorts Ltd (WYNN) and then MGM Resorts International comes third. There are some international major players found in the casino industry and examples include the Melco Crown Entertainment (MPEL) based in Hong Kong, the Galaxy entertainment and SJM Holdings which mainly operate in Macau.

 

This paper seeks to provide a deeper understanding of the global entertainment industry with specific emphasis on casinos.  With regards to that, the paper will focus on three locations where casinos are very successful and these are: Macao in China, Las Vegas in United States and Atlantic City in United States. The paper will look at the major industry players in these places, their scope and influence, the segment trends within the casino industry in these places and the future of casinos in the same places. 

The Wynn Macau Casino, Macau, China

Section 1: Major Industry Players

The casinos in Macau are the biggest, the best and known to be the most expensive. This place was a former Portuguese colony which has now grown and part of this success can be attributed to its gambling dens particularly the casinos. The Wynn Macau casino was opened in September 6, 2006. It has earned the reputation of being the premium brand resort preferred by sophisticated visitors. This has helped the casino to grow in addition to other ventures not related to the casino and examples include hotel and entertainment. Steven Wynn, the casino tycoon is in charge of running the Wynn Macau casino.

 

The Wynn Macau casino has benefitted so much from the fact that there is an extremely strong market for gaming and travel among the Chinese people. Experts predict a 10% increase in the per capita disposable income that will be experienced in China between 2015 and 2020. In 2014, there was only a 1.5% rate of Chinese population penetration compared to a 12% rate in Las Vegas. Overtime, a lot of changes have been made which have contributed towards the growth of casinos in Macau. There has been a 50% increase in the number of hotel rooms which allow accommodation of more visitors from provinces that are outside Guangdong. This means that they can stay longer and gamble more therefore promoting the casinos. Macau is the only place in China where gambling has been legalized and this is partly why it has flourished. Macau has therefore turned into a popular gaming destination. The Wynne casino attracts a huge crowd who come to see the shops and the high stake games. Examples of the big names it attracts include Versace, Louis Vutton, Gucci and Prada. 

 

Section 2: Scope and Influence of Segment

From the outside, there are lots of similarities between the Wynn Macau casino and its brother casino in Las Vegas. They both have a color scheme of red and beige on the inside and outside parts of the casinos. In addition to that, the casino consists of a sweet poker room that has beautiful female dealers. The Wynn Macau has a lot to offer with regards to the slot machines and they range from HK$0.05 to $ 5,000 for every pull: the rate for the general activities range from $295 to $630 v.  More than 10% of Wynn’s stock price is derived from the domestic casino operations. It consists of two hotels namely; the Wynn Casino Resort and the Wynn Encore Macau. This casino has a spa at Wynn and its venues include Cinnerbar, Bar Crstal and the Wing Lei Lounge. According to statistics portal, the casino has 495 tables, 11 poker tables and 1015 gaming machines. It is normally opened 24/7. The casino is 205,000sq/ft and the convention is 24,000sq/ft. 

Section 3: Segment Trends

The Wynn Macau has table games consisting of both contemporary and traditional games and examples include Caribbean Stud, sic Bo, Blackjack and Roulette not to mention all types of baccarat. The Wynn Macau casino gets its revenue from the hold made over the sum of money that people wage at the gaming tables. The casino has two signature shows namely the Dragon of Fortune and the Tree of Prosperity. The Dragon of Fortune takes place every hour and this mainly consists of a dragon that rises to about 28 feet in the air. This dragon has an animated head, glowing eyes and smoke billowing out of its nostrils. This dragon is covered with gold leaf of about 2,450 square feet and this bling is what makes the Dragon of Fortune more interesting compared to other shows. The Tree of prosperity is the second show and this takes place after every half hour. This show involves a giant golden tree that spectators watch as it rises from the ground. Apart from these two, the casino has other attractions which include the Performance Lake, Cabanas, Moon Jellyfish Aquarium and Pools. 

Section 4: Future Outlook

The Wynn Macau casino is very successful despite the rough patches it has gone through over the years. There isn’t any significant change expected in the coming years due to the fact that other states are also catching up on the idea of making legalizing casinos which might take away some of the attention that the Wynn casino currently has. However, Wynn is embarking on a new project known as ‘Everett Massachusetts’ and this is predicted to considerably boost the domestic gaming operations of the casino. 

 

The casino has faced a number of setbacks over the years and a good example is the mysterious disappearance of millions of money from the casino. The casino brings in billions and this is the same place where multimillions mysteriously disappear.  Reports from the local police in charge of the case said that the missing money was estimated to be over 270 million Macau Patacas which is equivalent to approximately $34 million although Steven Wynn denied losing any money. Apart from this incidence, the casino faced a bust of a prostitution ring which resulted in rounding of about 4,000 triad members. 

Red Rock Resort Casino, Las Vegas, United States

The most successful companies in the United States casino industry are the ones that are able to provide full leisure packages in the form of resorts, exhibition facilities, entertainments complexes, casinos and shopping malls among others. A good example of such an establishment is the Red Rock Resort Casino in Las Vegas. 

Section 1: Major Players

The Red Rock Resort is both a hotel and a casino complex established in 2006. This hotel and casino is located near the dramatic red cliffs found in the conservation area of the Red Rock Canyon in Lag Vegas. The location of this casino has greatly contributed towards its success.  This property is constructed similarly to the Green Valley Ranch which is its sister property and the style is that of a high-end boutique. The property has a flowing design with a unique architecture. In addition to that, it has a state-of the art technology and it cannot be compared to most of the large resorts on the strip. The casino floor is about 87,000 square-foot. The suites are normally used by corporate clients.

Section 2:  Scope and Influence of Segment

The Red Rock has LCD screens in almost every area from the Resort to the Spa and the Casino. In addition to that, there are modern light fixtures which serve to brighten the casino floor. There are several hot spots within these establishments and one needs to follow the tiled pathways that surround the various gaming areas in order to find them. The unique design of this area brings out its natural beauty. There are various materials that have been incorporated into this area to achieve this kind of beauty and they include red patent crocodile leather, marble, wood and red sandstones among others. 

The Red Rock Casino is full of glitz, glamour and action. The slots are about 3,000 in number and 60 table games and video poker machines. The casino has a high-limit room, a smoke-free poker room, a keno lounge, race and sports book that can accommodate 206 people and an extensive bingo hall.  

Section 3: Segment Trends

The table games in the Red Rock Casinos offer various games such as baccarat, blackjack, craps and roulette. The casino has various attractions it has a 96-foot video wall. The Conde Nast Traveler magazine named this hotel and casino the best in the whole world and went ahead to win the AAA Four Diamond Award. 

The casino has a free boarding pass guest reward program that enables the guests to earn points and redeem them at any of the Station Casinos property. One can earn a lot of things and examples include cash back, free or discounted hotel rooms and entertainment. There are two options for winning this reward, one can either get his or her reward through rewards center kiosks or rewards center desk. These two places enable someone to see their point balances and check out their rewards. 

 

The Red Rock Casino and Resort has a lot to offer in terms of entertainment. Apart from its many bars and outdoor venues, it also offers concerts with great acts. Its open air night club, Sandbar is the largest in Las Vegas and it hosts both public and private events. It has a variety of electric headliners which include barenaked Ladies, Gipsy Kings, Lifehouse, Goo Goo Dolls and so on. Its outdoor amphiheater is the largest in the entire Southern Nevada and this attracts up to about 10,000 guests. 

Section 4: Future Outlook

The Red Rock casino has managed to stay out of scandals. This casino and hotel is always looking for a way to expand and become a bigger house name. The Resort and casino were renovated after the Station Casinos announced their plans of setting aside $35 million for renovations in 2013. This included the interior and exterior of the resort and a “restaurant row” facing the entrance. 

The Borgata Hotel, Casino and Spa

Section 1: Major players

This upscale resort overlooks the Renaissance Pointe and is located about 2.1 miles away from Atlantic City Boardwalk. The Atlantic City is normally identified with its casinos which come in almost every variety. People who like playing at the high stakes poker tables can enjoy doing so at the city’s casinos. Those who prefer penny slots are also catered for and one cannot fail to get what they like. The Borgata is considered to be the brightest spot in the whole of Atlantic City. 

 

This Hotel, Casino and Spa is partly owned by MGM Resorts and Boyd Gaming. The revenue earned from Atlantic City dropped by about 6.2% in 2013 but the Borgata experienced a 0.7% increase. In addition to that, it received revenue of $617 million which was the highest in the gaming industry. This goes to show how resilient this Hotel, Spa and Casino is. 

Section 2: Scope and Influence of Segment

The Borgata casino comprises of more than 3,000 slots which are considered to be the hottest slots and these are available in different denominations. There are a variety of games you can play and they include roulette, Pai Gow, Craps, Texas Hold ‘Em and so on. The casino is about 161, 000 square foot has more than 180 table games in addition to poker games. It is considered the hottest place in Atlantic City with regards to casino excitement. People who are looking for a thoroughbred harness racing can try the casino’s racebook. The Borgata casino has state of the art facility consisting of about 100 seats and all these have individual flat-screen monitors. There are also exclusive players card which one can win and walk away with generous rewards. There are lots of poker slots, reel slots and video slots.

 

The Borgata has a poker game program which consists of daily tournaments in addition to the high-stake tournaments. It also has the World Poker Tour. Its racebook is the only one existing in Atlantic City and this makes it stand out. 

Section 3: Segment Trends

The Borgata casino has six casual dining options and a lower level food court that accommodates seven eateries. There is also a water Club lobby that customers can enjoy. The patrons at the casino normally get extended hours to majority of these locations. The casino normally operates 24/7 although reservations are not accepted for these locations. The event center can hosts big concerts and events since it has about 2,400 seats. Other facilities available at the Borgata include a theater that can seat 1,000 people, a music box and others.  The Borgata also has nightclubs such as the MIXX, the Gypsy Bar, B Bar and Long bar among others.  

Section 4: Future Outlook

The Borgata casino has faced some scandals over the years. Most people normally associate underground ports gambling with the mafia and so some were not surprised by the allegations that the Mafi was running an illegal sportsbook at the Borgata. An operation was conducted in which 23 people were arrested and charged with participating in high-stakes poker room having underground sports gambling. Some of the people arrested were actually connected to the mob, the Philadephia South Jersey Mafia to be specific. During this operation, a sum of $22 million dollars was found which was derived from illegal bets. The bets were on a variety of things mostly related to games and examples include professional football, college football, and professional basketball and so on. 

 

There was also an incidence known as the Borgata Chipgate in which some counterfeit chips that were being smuggled inside the casino were discovered in the casino’s toilet when it clogged. Christian Lusardiwa, a resident of North Carolina was arrested in relation to this and charged with theft not to mention a few other crimes. He confessed to sneaking the chips into the casino to help him win in poker tournaments.  In order to prevent such kinds of activities in the future, the Borgata introduced some anti-cheating chips. These chips are made using intricate designs and are multicolored which makes it very difficult to replicate them. In addition to that, there is a specific way in which these chips respond to ultraviolet light and it is only the Borgata employees who have this knowledge. Although this casino has faced some challenges, it still forges on and continues to be among the best casinos in Atlantic City. Borgata casino announced its plans of opening up two venues in 2015 in order to grow and expand their establishment. These were namely; a new nightclub and a festival outdoor concert grounds. 

Conclusion

Casinos worldwide are loved and hated in equal measure. However, their contribution to the economy cannot be ignored. The entertainment industry specifically the casinos bring in a lot of revenue which is used to develop the various states. There are some states like China which heavily rely on casinos to boost their income. Casinos have both advantages and disadvantages or risks associated with them. Although they are highly prone to scandal and setbacks, they try their best to forge on, provide the people with entertainment and make profits. As long as people are willing to spend on entertainment, casinos will always be around. 

 

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