The Casino Industry
Essay Preview: The Casino Industry
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The Native American casinos made approximately 18,036 million dollars in the year 2005 compared to a combined total of approximately 11,052 million dollars made by the traditional casinos from Las Vegas and Atlantic City. To maximize the revenue, traditional casinos in Las Vegas and Atlantic City need to tie up with the Native American groups and explore new potential locations to strategically diversify competition. This will not only increase their revenue, but will also increase their target audience which automatically will bring more money to the industry. Traditional casinos may also consider ownership of other casinos through mergers and acquisition, which will leverage the synergies of reducing the cost, increase the profit margin and will strategically target different audience to minimize cannibalization.
The slot machines placed at the racetracks is a growing concern and poses a threat to the casino industry. Gamblers can now spend money in the slot machines at the racetracks instead of the traditional casinos which may be in a different state or far away for gamblers to decide against it. To overcome this situation and to maximize the stay of these gamblers in these casinos, the casino industry should open up their own racetrack with a facility of city online lotto system. The lotto system will offer winning prizes such as free airline ticket and 3 nights free stay at a casino in Las Vegas or Atlantic City. This will not only increase the popularity of casinos of both Las Vegas and Atlantic City but will also increase the average stay of customers which for Atlantic City is just 1.5 days. If we look at the statistics, Atlantic City is currently making revenue of $5.3 billion with annual visitors of around 34 million. If the stay is doubled to 3 days, this will automatically increase the annual visitors and in turn the revenue. Indeed this will be a win-win situation.
Finally, the growing competition from online gambling is considered