The Casino Industry Case Study Analysis
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The Casino Industry Case Study Analysis
The legendary casino mogul Steve Wynn launched the most expensive resort ever built in April 2005. The resort was built on the Las Vegas strip. It was a $2.7 billion property that was designed to offer the highest conceivable level of luxury. The resort offered 2,700 rooms which included floor-to-ceiling windows, 320-thread count European linens, flat screen televisions, and marble bathrooms. The shopping arcades provide the feel of a walk down New York Citys Fifth Avenue with outlets such as Chanel, Dior, and Cartier. The property also includes a Ferrari and Maserati dealership. A Las Vegas newsletter publisher, Anthony Curtis, said, “No expense has been spared. Its not a matter of Will it be great? but Just how great will it be?”
Wynns previous venture was the Mirage Resort which was snatched up by Kirk Kerkorians MGM a little over five years ago. The new Wynn Las Vegas resort was a comeback that he had been planning for some time after getting rid of the Mirage Resort. He has put everything in the resort to show that he is the guy who makes the best resorts in the world.
Wynn is taking considerable risks in trying to outdo his rivals. The casino industry has shown little growth in recent revenues. The major centers of gambling such as Las Vegas and Atlantic City have shown little growth. The expansion of Native American casinos and the emerge of online gaming are factors to the decline in growth. Now casinos fell the need to sped more and more to entice more gamblers.
For many years Nevada was the only state in which casinos where allowed. Nevada still retains its status as the state with highest revenues from casinos, with revenues reaching $10.3 billion in 2004. More than half of these revenues came from casinos that are located in Las Vegas. In 1976 New Jersey pass laws allowing gambling in Atlantic City, this gave the population on the east coast easier access to casinos.
The growth of casino gambling has been driven by the better payouts that they give to their players. Casinos typically keep less than $5 of every $100 that is wagered. Racetrack betting keeps over $20 of every $100 that is wagered. State lotteries keep about $45 of every $100 that is spent on tickets. The winning in casinos are put backing to play much faster then any other form of gaming. This provides a casino with more opportunity to win from a customer. Most of the growth in the casino industry comes from the growing popularity of the slot machines. These slot machines account for more than 60 percent of all casino gaming revenues.
There are two major cities that have seen a spectacular growth in casino gaming revenues over the years, Las Vegas and Atlantic City. Las Vegas has far more hotel casinos, each of the dozen casinos in Atlantic City typically generate much higher revenues. Las Vegas acts like a magnet for the