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transitioned to gaming after spending years promoting coin-operated arcade games. Amusements thrived for decades because as long as younger people wanted to play games, there would be customers that would last into adulthood. However, our simplistic mindset collapsed when
Nintendo introduced home games in the 1980s. We suddenly had to get players off their cushy sofas. Casinos were a different story. Anyone wanting to play a slot or table game had to visit a legal destination. Again during the 80s, the one-dimensional mentality believed the more elaborate the venue, the greater the crowds. That worked for many years. Today, casino executives realize their mere
existence is not enough. Mintel International, a data analysis company on consumer behavior and media, reported casino customer traffic fell last year to 30 per cent. Tribal casinos experienced their own drop to 27 per cent of adults; 24 per cent visited Las Vegas and 12 per cent gambled in Atlantic City. While the economy obviously has impacted gaming
Out-of-towners are great, but the continual “bread and butter” residents are better…
revenues, particularly in Nevada with its record-high unemployment and home foreclosures, one senior analyst speculated that sophisticated home entertainment HDTVs, high-end video game systems and advanced Internet with online gambling options have also impacted casino attendance. Casino operators must thoroughly analyze who
plays and what they want. Out-of-towners are great, but the continual “bread and butter” residents are better. Like many regional riverboat jurisdictions in the Midwest and South, Atlantic City has developed new programs for 300,000 residents living in its two closest counties. Special business and restaurant promotions for “locals” are appearing all over town. Las Vegas has perfected locals marketing. Like Boyd Gaming in downtown Las Vegas, some local casinos outside the city have targeted “mature” players by installing banks of older, refurbished slot and poker machines on their gaming floors. Guess what… they are a huge draw for seniors. Millions of America’s playing customers still prefer the simplicity and ringing bells of the coin-operated games. Many manufacturers have phased out these games, but companies like IGT are refurbishing and selling them. While their primary used game sales territory is overseas to newer jurisdictions, there is definitely a small local market that smart operators will tap into. Elsewhere, things can happen in an instant; what a
difference a day can make. You may remember my report last month that golden boy Steve Wynn was returning to the East Coast to salvage the troubled
10 MAY 2010
Sharon Harris brings the ins and outs from US gaming
Philadelphia Foxwoods project. Within days of submitting that column, the process was moving along smoothly. Wynn had even presented plans ahead of schedule to Pennsylvania’s gaming control officials. Then, without warning or a clear explanation,
Wynn abruptly pulled his name and investments from the project.
The Philadelphia Inquirer, the city’s major newspaper,
reacted with a scathing editorial regarding what they consider just another problem in Pennsylvania’s “reckless entry in gaming”. The editorial read, “Wynn folded his hand faster than some of the poker players he’s used to seeing in his casinos. He wasn’t at the table long enough here to get a free drink.” Immediately, the rumor mill buzzed that Wynn
chose to bypass Philadelphia to drive the 60 miles back to his earlier roots in Atlantic City. That rumor was quickly dispelled after Wynn’s spokesperson stated that his focus would remain focused on Nevada and Asia. Wynn is now so committed to Macau that he is considering relocating Wynn Resorts’ global HQ from Las Vegas to Macau, where he just opened the $600million Encore. The Macau property generates more than half of Wynn Resorts’ operating revenues. Back in Pennsylvania post-Wynn, Foxwoods is floundering with multiple problems. The original local investors have benefitted from a close friendship with Governor Ed Rendell. However, time is running out for both Foxwoods and Rendell, whose term ends next January. Who can predict how the new governor will react to this bungling. Wynn may also soon lose another identification
reference. MGM Mirage recently filed a request with shareholders to officially change its corporate name to MGM Resorts International. The change would end a 10-year name brand that followed the MGM Grand acquisition of Wynn’s Mirage Resorts in 2000. In addition to 10 Las Vegas Strip properties, MGM
Mirage also owns half a casino in Macau. An MGM Mirage marketing executive reveals the organization holds approximately 16 agreements and letters of understanding to use the MGM Grand, Bellagio and Skyloft brand names in the Middle East and Asia. Finally, in that other billionaire battle, Carl Icahn lost his bid against “the Donald” in federal court. The Trump name will remain on the three Trump properties in Atlantic City, although namesake Donald Trump will retain only 5% company ownership. However, since perception is everything, the public will still view Trump as the main man in charge, which will suit him just fine.
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