Chapter 11 Gaming and Casino Hotels
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1 Chapter 11 Gaming and Casino Hotels Introduction to the World of Hospitality
2 After Reading and Studying This Chapter, You Should Be Able to: Outline the history of gaming around the world, in the USA and in China Describe casino operations, including casino games, terminology, employees, customers, marketing, and controls and regulations
3 Gambling = Gaming Gambling is the betting of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Gaming gambling when it is permitted by law. Question: When do you think people started to gamble?
4 History of Gaming First mentioning from ancient Chinese dynasties (2600 B.C.) and ancient Egypt Ancient Greeks did not approve Ancient Romans making bets on sports events, gladiators, etc. Gambling came to Europe after the Crusades ( A.D.)
5 History of Gaming in the U.S. Started with sailors of the explorers (Columbus, etc.) Got spread among native Americans & early colonists Gambling was legalized: in Nevada in 1931 in Atlantic City in 1976 Indian gambling in 1988 riverboat gambling reemerged in late 1990s Nowadays is legal in all states except Utah & Hawaii
6 Modern History of Gaming in China Gaming is banned everywhere in Mainland China In 2002 ease of legislation and Macau, S.A.R. of China, is allowed to have gaming Gaming revenues grew at around 30% a year between Question: Which revenue is higher: Las Vegas or Macau?
7 Las Vegas vs. Macau Las Vegas Size: 350 sq.km Number of casinos: ~80 Average spending: $156 Revenue in 2013: 6.5 $bn Famous for: entertainment Macau Size: 30 sq.km Number of casinos: ~40 Average spending: $1354 Revenue in 2013: 45 $bn Famous for: gambling
8 Gambling Revenues in 2012 (Boyce, 2013)
9 Casino Games 1. Table games baccarat, blackjack, craps, roulette 2. Slot machines
10 Baccarat
11 Blackjack
12 Craps
13 Roulette
14 Most Popular Table Games USA black jack Europe roulette Macau baccarat
15 Who Are the Guests? 1. Grind players (low-end) budget players 2. Middle-range players spend between $3000- $5000 per trip 3. High-end players (high rollers or whales) spend more than $5000 per trip
16 Video Top Las Vegas Casino Hotels Questions: 1. Which is the largest hotel they described? How many rooms does it have? 2. What are some of the unique attractions of different hotels shown in the video? Answers: 1. MGM Grand with 6900 rooms 2. Bellagio fountains, Venetian gondolas, Caesar Palace the Coliseum with free shows, Circus Circus rides, circus shows, etc.
17 Key Players: MGM Resorts Intl. MGM Grand The Mirage Treasure Island Golden Nugget Monte Carlo Bellagio Circus Circus Atlantic City casino hotels Manage MGM Grand Macau etc.
18
19 Key Players: Harrah s Entertainment Harrah s Hotels & Casinos: Reno, Lake Tahoe, Las Vegas, and Laughlin, NV Atlantic City, NJ Riverboat and dockside casinos Native American Casinos
20 Key Players: Las Vegas Sands The Venetian The Palazzo Sands Macao The Venetian Macao Sands Cotai Central Marina Bay Sands, Singapore
21
22 Key Players: Wynn Resorts Wynn Macau and Encore Wynn Las Vegas and Encore Read about Stephen Wynn in Chapter 11
23 Casino Hotels What is the main part of the casino hotel operations? Casino operations Casino hotels are casinos with guestrooms attached Rooms, F&B, Entertainment & other departments play supporting role
24 Casino Hotel Organization p.333
25 Jigsaw Exercise In groups learn the following casino terms: 1. Markers 2. Cashier s cage 3. Pit & pit boss 4. Fill and credit slips 5. Drop box 6. Table drop 7. Slot drop 8. Table win 9. Hold percentage 10.Croupier or dealer 11.Floor people 12.Shift manager pp
26 Casino Operations Definitions Markers printed or written IOUs that extend credit to a player, used instead of cash to buy chips from dealers.
27 Casino Operations Definitions Credit slip a form that states the amount of the excess chips at each gaming table at the end of a shift. Extra chips will be returned to a cage along with the slips. Fill slip a form that states the amount of chips short at each gaming table at the end of a shift.
28 Casino Operations Definitions Cashier s cage or the cage the area within the casino where chips, cash are stored, and checks are cashed, where credit cards are accepted, and where markers are approved. Controls the flow of chips to and from gaming tables.
29 Casino Operations Definitions Drop box A locked box beneath each gaming table into which the cash and markers received from players are deposited. Removed after each shift and the content is counted under strict supervision.
30 Casino Operations Definitions Table drop the amount of money and markers in a gaming table s drop box that players have exchanged for chips at that table. Table win the amount bet at the gaming table less the amount that is paid back to the players. Slot drop the amount of money put into the slot machine, less the amount paid out. Hold percentage the percentage of chips purchased at a gaming table that is won back by the casino.
31 Casino Operations Positions Croupier or dealer an attendant at a gaming table who conducts the game, collects bets, and pays the winning bets of players using chips.
32 Casino Operations Positions Floor people casino employees that supervise dealers to avoid cheating, resolve disputes and enforce good dealing practices. Normally supervise 2-4 tables.
33 Casino Operations Positions Pit boss a manager who oversees a group of gaming tables, called a pit. A pit can consist of a few gaming tables of same or different games. Has 2-4 floor people to report.
34 Casino Floor Plans
35 Casino Floor Plans
36 Careers in the Gaming Industry Hotel operations Food and beverage operations Casino operations Retail operations Entertainment operations
37 Gaming Industry Trends Look at entertainment for profit & growth Hotel room inventory in gaming properties is expanding Continued scrutiny by government Exceptional service quality is key to success Great management opportunities for students
38 Homework Questions (Book + Printout) 1. What is a casino hotel marketing department responsible for? What is a casino junket? (p.343-5) 2. Harrah s: what is Total Rewards? How does it work? 3. What information can be analyzed using Total Rewards? 4. What is the most profitable target market of Harrah s? 5. What are the findings of the Harrah s customer loyalty program?
39 Homework Read the article about Harrah s Read Chapter 11 and learn the terms.
40 References Boyce, L. (2013, September 7). What happens in Vegas... is nothing compared to Macau: The tiny Chinese peninsula that is the real global home of gambling. Retrieved from article /macau-casino-mecca-worldrevenue.html#ixzz3ge7o0vbg
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