Chapter Eleven



Chapter Twelve

Gaming Entertainment

Gaming Entertainment Defined Page Object.

|The gaming industry includes a range of activities including casinos, card rooms, charitable games, |418 |1 |

|lotteries, and wagering. Gaming entertainment will refer to the casino industry for the purposes of | | |

|this chapter. | | |

| | | |

|One of the most significant developments in the hospitality industry during the past two decades has | | |

|been the astounding growth of the casino industry and its convergence with the lodging and hospitality|418 |1 |

|industries. | | |

| | | |

|There is a difference between gambling and gaming. Gambling refers to the playing of games of risk for| | |

|the action or thrill. Gaming, however, includes not only the thrill aspects, but also includes other | | |

|facets, such as hotel operations, entertainment offerings, retail shopping, and recreational |418-419 |2 |

|activities. | | |

| | | |

|Gaming entertainment operations have the casino gaming floor as the main focus. High quality food and | | |

|beverage is a critical element. Other key components include: hotel operations, entertainment | | |

|offerings, retail shopping, recreational activities, convention services, and health spas. |420 | |

| | |2, 3 |

|The gaming entertainment industry differs from the casino industry in the diversity and broadening of | | |

|the revenue sources. Non-gaming revenues come from sources not related to waging on the casino floor | | |

|– hospitality and entertainment. | | |

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| |422 | |

| | |3 |

|Gaming is popular as an entertainment option. 26% or 51.2 million people gamble in casinos. U.S. |423 |1 |

|households make 300 million visits to casinos per year. More than 90% of U.S. adults say casino | | |

|entertainment is acceptable for themselves or others. | | |

| | | |

|Casino players tend to have high levels of income and education. Operators appreciate the need to know| | |

|the customers’ preferences and to tailor their properties to meet those preferences. |423 |2 |

Historical Review of Gaming Entertainment

|Las Vegas–the name alone summons images of millions of neon lights, elaborate shows, outrageous |424 |1 |

|performers, and bustling casinos, where millions are won and lost every night. | | |

|The gaming entertainment business has its roots in Las Vegas. From the early 1940s until 1976, Las |424 |1 |

|Vegas had a monopoly on the casino business, not the gaming entertainment business. Casinos had no | | |

|hotel rooms, entertainment, or other amenities. The hotels that existed were just a place to sleep | | |

|when a guest was not on the casino floor. | | |

|Casino gambling, seen as a desperate remedy for Atlantic City’s severe economic situation at the time,|424 |1 |

|was approved by a voter referendum in a statewide ballot in November 1976. | | |

| | | |

|With the spread of the casino industry throughout the U.S. and Canada, the competitive nature of the | | |

|industry began to create a need for what is now known as gaming entertainment with the addition of | | |

|non-casino attractions. Gaming entertainment is, therefore, a natural evolution of the casino |424 |1 |

|industry. | | |

Native American Gaming Page Object.

|In California v. Cabazon Band of Mission Indians et al. (1987), the Supreme Court decided 6-3 that |425 |1 |

|once a state has legalized any form of gambling, the Native Americans in that state have the right to | | |

|offer and self-regulate the same games, without government restrictions. | | |

|Congress, which some observers say was alarmed by the prospect of tribal gaming going out of control, |425-426 |1, 4 |

|responded to these court decisions by passing the Indian Gaming Regulatory Act of 1988 (IGRA). The | | |

|IGRA provides a framework by which games are conducted to protect both the tribes and the general | | |

|public. | | |

|The three objectives of the IGRA were to provide a statutory basis for operation, provide a statutory |426 |1 |

|basis for regulation, and establish an independent regulatory authority, the National Indian Gaming | | |

|Commission. | | |

|Native American gambling has been the fastest growing sector of casino gaming in the United States. | | |

|There are now 281 Native American gaming facilities in 32 states. |427 |1 |

Size and Scope of Gaming Entertainment

|Recently, a merging frenzy has occurred in the gaming industry. As of 2000, there were four large |427 |1 |

|casino operators: Park Place Entertainment, Inc., MGM Grand, Inc., Harrah’s Entertainment, Inc., and | | |

|Mandalay Resort Group. These four hold all the cards in the gaming industry, so to speak! | | |

|The gaming entertainment industry pays billions of dollars per year in taxes. Gambling pays taxes to |427-428 |1 |

|state governments. Casino gaming companies pay an average of 12 percent of total revenues in taxes. | | |

|Casino development has been credited with revitalizing economies through new capital investment, job |427 |1 |

|creation, new tax revenue, and increased tourism. | | |

|Key Players in the Industry | | |

|Today, there are four giants in the gaming entertainment business: Park Place, MGM, Harrah’s, and |428 |3 |

|Mandalay, all well-respected and well-run businesses. Text pages 428-30 discuss the more notable | | |

|achievements of the corporations with regard to gaming entertainment. | | |

| | | |

|Exciting Gaming Entertainment Projects | | |

|The Mirage distinguishes itself by its large erupting volcano and tropical rainforests. The pool is a | | |

|paradise of waterfalls and connecting lagoons. |431 |3 |

| | | |

|Station Casino Kansas City creates an elegant Victorian theme, including cobblestone streets, | | |

|antiques, and hand-painted sky. | | |

| |432 |3 |

|New York New York Casino, located in Las Vegas, is an incredible replica of the real city of New York,| | |

|including skyscrapers, Little Italy, the Statue of Liberty, the Brooklyn Bridge, and much more. | | |

| |432 |3 |

|Star Trek: The Experience, also located in Las Vegas, is designed to attract all those interested in | | |

|science fiction with its outer-space theme casino and attractions. | | |

| | | |

|Atlantic City’s Wild Wild West Casino is the city’s first highly-themed, entertainment-oriented, |432 |3 |

|technology advanced casino. Model trains, canyons and waterfalls, vultures, and mountain scapes all | | |

|create an 1880 western frontier theme. | | |

|The Masquerade Village has a unique parade including five themed floats suspended from the ceiling. | | |

|These floats hold entertainers and performers who perform throughout the day. |432 |3 |

| | | |

|The Luxor Las Vegas was constructed as a thirty-story pyramid and houses the world’s largest atrium. | | |

|It also features a beam of light so intense it can be seen from Los Angeles, California. | | |

| |433 |3 |

|The dockside Grand Casino Tunica is located in Tunica County, Mississippi. The casino offers guests a | | |

|variety of atmospheres, including the San Francisco Gold Rush, the New Orleans Mardi Gras, the Great | | |

|American West, or a Mississippi riverboat town. | | |

| |433 |3 |

|The Monte Carlo Pub & Brewery is one of the largest brewpubs in the United States. The Pub offers an | | |

|extensive variety of beer, including six different styles of Monte Carlo-labeled beer. | | |

| | | |

|Treasure Island’s theme is shown through its wooden bridge entrance, pirate battles, and gunfire. The|433 |3 |

|resort also features a very unusual circus act that does not actually involve animals. | | |

| | | |

|The Forum Shops at Caesar’s Palace draw an estimated 50,000 people a day. One main feature is the | | |

|fountain and light show incorporated with animatronic statues of the Roman gods. | | |

| |434 |3 |

|Fremont Street Experience is brought to life with a four-block-long pedestrian mall light and sound | | |

|show. A giant video-quality animation screen provides a canopy over the entire area. | | |

| | | |

|Foxwoods Resort Casino is located in Connecticut and is one of the largest gaming operations in the |434 |3 |

|world. It is owned and managed by the Mashantucket Pequot Tribal Nation. | | |

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|Aladdin Casino and Hotel, which opened in 2000, contains a fifty-foot genie golden lamp on which its | | |

|entire theme is situated; the classic Arabian tale of the thousand and one nights. |434-435 |3 |

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|The Bellagio, which cost more than $1.5 billion to construct, contains an art gallery holding works by| | |

|Picasso, Renoir, and Rembrandt. |435 | |

| | |3 |

|Caesars Riverboat, located in Indiana, includes a 450-ft-long vessel, a convention-style hotel, an | | |

|upscale shopping mall, a sports arena, IMAX theater, attractions, golf course, theme park, and a | | |

|“Caesar’s Chariot” gondola system. |435-436 | |

| | |3 |

|The MGM Grand, a 5,000 room megaresort, carries out the theme of “City of Entertainment” with its | | |

|Studio Walk, Hollywood landmarks, and nightclub. |436 | |

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|The Beau Rivage, located on the Mississippi Gulf Coast, includes cascading fountains, lush formal | |3 |

|gardens and acres of white sand overlooking the Gulf. | | |

| |436 | |

|Hilton Hotel Paris Casino Resort includes a half-sized, fifty-story replica of France’s Eiffel Tower, | | |

|3,000 rooms, and 130,000 square feet of casino space. | |3 |

| |436 | |

|Las Vegas Sand’s Venetian is inspired by the canals, bridges, and ancient architecture of Venice, | | |

|Italy. The Resort includes two large casinos and a 1,200 ft replica of Venice’s Grand Canal. | |3 |

| | | |

|The MGM Grand Detroit is an art-deco megaresort constructed in downtown Detroit, including a variety | | |

|of restaurants, stores, and movie theaters. | | |

| |437 | |

|Le Jardin, located in Atlantic City, includes three acres of vaulted glass atriums and lush | | |

|horticultural gardens and 2,000 rooms. | |3 |

| | | |

|The Borgata has earned the title of most expensive megaresort casino in Atlantic City. It has 2002 |437 | |

|rooms and 125,000 sq. ft. of gambling space. | | |

| | |3 |

|Positions in Gaming Entertainment | | |

|The possibilities for careers in the gaming entertainment industry are endless. The five initial |437 | |

|career tracks are hotel operations, food and beverage operations, casino operations, retail, and | | |

|entertainment operations. | |3 |

| | | |

|Hotel Operations |437 | |

|The rooms and guest services departments offer the most opportunity for students of hospitality | | |

|management. Reservations, housekeeping, valet parking, and guest services can all be very large | |3 |

|departments with many employees. | | |

| |437 | |

|Food and Beverage Operations | | |

|The gaming industry holds some of the best foodservice operations. As with hotels, the gaming | |3 |

|industry is very large and contains many food and beverage outlets. | | |

| |437 | |

| | | |

| | |3 |

|Casino Operations |437 | |

|Casino operations jobs fall into five functional areas including gaming operations staff, casino | | |

|service staff, marketing staff, human resources, and finance and administration staff. | |3 |

| | | |

|Game dealers must be skilled in a variety of games, including blackjack, craps, roulette, poker, and | | |

|baccarat. |438 | |

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|Retail Operations | |3 |

|Retail operations often support the overall theme of the property and are usually a major source of | | |

|revenue. However, retail is often overlooked as a career path in the gaming industry. | | |

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|Entertainment Operations |438 | |

|Due to constant competition, gaming entertainment companies are creating bigger and better production | | |

|shows to turn their properties into destination attractions. Because of this, careers in stage and | |3 |

|theater production, lighting and box office management, and talent management and booking are more | | |

|available. | | |

| | | |

|Trends in the Gaming Entertainment Industry |438 | |

|Some trends in the industry include less dependence on the casino’s revenue alone and more on food and| | |

|beverage, and retail and entertainment revenue for profit and growth. (pp. 440-441). | |3 |

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Check Your Knowledge, p. 427

1) Question: Define the following:

a) Wagered

b) Bet

c) Handle

d) Win

e) Action

f) Beat the House

g) Social gambler

Answer (page 418):

a) Wagered – an amount or object risked in a wager.

b) Bet – same as wagered.

c) Handle – the total bet amount.

d) Win – the net amount of spending by the customer.

e) Action – playing a game of risk for the thrill and the chance of making money.

f) Beat the House – win more than they lose from a casino.

g) Social gambler – customers who play a game of risk as a form of entertainment and social activity, combining gambling with many other activities during their visit.

2) Question: Briefly describe the history of the gaming industry.

Answer: The gaming entertainment business has its roots in Las Vegas. From the early 1940s until 1976, Las Vegas had a monopoly on the casino business, not the gaming entertainment business. Casinos had no hotel rooms, entertainment, or other amenities. This was the era when a slot machine or a blackjack table was enough to attract guests to the operations (p. 424).

3) Question: What does the Indian Gaming Regulatory Act of 1988 consist of?

Answer: The IGRA provides a framework by which games are conducted to protect both the tribes and the general public. The three objectives of the IGRA were: (a) provide a statutory basis for the economic development, self-sufficiency, and strong tribal government; (b) provide a statutory basis for the regulating of gaming by a Native American tribe adequate to shield it from organized crime and other corrupting influences; and (c) establish an independent regulatory authority, The National Indian Gaming Commission (NIGC), for governing gaming activity on Native American lands. (pp. 426-427)

Check Your Knowledge, p. 438

1) Question: What impact does the gambling industry have on crime?

Answer: Organized crime and casinos – there is no direct connection between the gambling industry and organized crime, and the common assumption that casinos increase organized crime is partially grounded in stereotypes from the early years of the industry.

2) Question: Briefly describe the following gaming entertainment projects:

a) New York New York

b) The Monte Carlo Pub and Brewery

c) Treasure Island

d) Forum Shops at Caesar’s Palace

e) Bellagio

f) MGM Grand

Answer (pages 431-437):

a) New York New York – In Las Vegas is an eye-catching property with twelve hotel towers, each a replica of a Manhattan Skyscraper.

b) The Monte Carlo Pub and Brewery – Is located in the Monte Carlo Resort and Casino in Las Vegas; it is one of the largest brewpubs in the U.S. Six different styles of Monte Carlo labeled beer are regularly produced, including a light beer, Indian pale ale, and an American-style, untitled wheat ale.

c) Treasure Island – A megaresort; the entrance is across a long wooden bridge that traverses the waters of Buccaneer Bay. Every ninety minutes each evening, cannon and musket fire is exchanged in a dynamic pyrotechnic battle between the pirate ship Hispanola and the British frigate HMS Britannia in the middle of the bay.

d) Forum Shops at Caesar’s Palace – Draws an estimated 50,000 people a day and makes an average of $1,200 per square foot, far above the industry norm of $400.

e) Bellagio – A megaresort located on the Las Vegas Strip at a cost of more than $1.5 billion, which is more than the initial construction cost of Disneyland.

f) MGM Grand – A megaresort in Las Vegas themed out as the “City of Entertainment.”

Answers to Chapter 12 Review Questions

1) With the rapid expansion of legalized gaming entertainment in North America and throughout the world, new opportunities have been created for careers in the hospitality industry. The gaming entertainment business has its roots in Las Vegas. From the early 1940s until 1976, Las Vegas had a monopoly on the casino business and not the gaming entertainment business. Traditionally, casinos had no hotel rooms, entertainment, or other amenities. The hotels that existed were simply a place to sleep when a guest was not on the casino floor.

2) Gaming entertainment refers to one subset of the gaming industry, namely, the casino industry. What used to be known as the casino business is now known as gaming entertainment. Gaming entertainment refers to the casino gaming business and all of its aspects, including hotel operations, entertainment offerings, retail shopping, recreational activities, and other types of operations in addition to wagering on the gaming floor.

3) The millions of neon lights, round-the-clock entertainment, elaborate shows, outrageous performers, bustling casinos, and the chance to win millions attract people from all over the world.

4) Strict regulations on the casino floor are due to the common assumption that casinos increase crime; this is partially grounded in stereotypes from the early years of the industry.

5) Hotel operations in a gaming entertainment business are different from hotel operations in a non-gaming environment in that the size and scope of gaming entertainment is much greater. Gaming entertainment operations are relatively labor intensive; thus, they create more direct jobs than those in other industries. Also, casino entertainment is one of the most tightly regulated industries in the United States. Due to large competition, gaming entertainment companies are creating bigger and better production shows and casinos to turn their properties into destination attractions. Unlike the non-gaming hotel operations, major sources of revenue are derived from entertainment rather than room revenue.

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