STATESIDE
premier casino loyalty programs. Although a perfect complement to People, Inc., most customer loyalty programs are typically privately held, based on customer behavior within the gaming infrastructure.
In Las Vegas alone, MGM operates many of the most visible, luxurious and successful properties. These include Bellagio, Vdara at ARIA, Mandalay Bay, W Las Vegas, New York-New York and others.
Nationwide, there is Borgata in Atlantic City, Beau Rivage in Biloxi, Mississippi, MGM National Harbor in Maryland outside Washington, D.C., just to name a few. These properties sell experiences as much as anything else.
Conversely, media companies look for ways to maximize money-making customer allegiances. This data alliance could introduce explosive customer communication. Everyone knows that Artifi cial Intelligence (AI) has devastated the digital media business and compromised talent. On the other hand, AI cannot damage MGM‘s physical assets like a casino fl oor, a lavish suite, live entertainment arenas and dining venues. Diller will reportedly maintain the status quo and keep MGM’s executive management team’s existing agreements in place. Available cash, debt and equity will fund the acquisition.
This new philosophy shows an evolutionary trend in mergers and acquisitions. In years past, many industries’ perishable products changed how they bought and sold companies.
For example, my former coin-operated amusement/vending world utilized a different buying and selling formula. In those years, the “good will” of the existing contracts and agreements enhanced a company’s sales price.
Why was goodwill so crucial to an acquisition or sale? The easy answer is the shelf life of the equipment. As coin-op and casino operators know, a machine or table game’s lifespan may be fi nite because of technology advancements, changing trends
Barry Diller Photo by David Shankbone
As the U.S. celebrates the offi cial July 4,1776 birth of the original 13 colonies, I applaud the visionary genius of our forefathers George Washington, Thomas Jefferson, Ben Franklin and the dozens of other “Founding Fathers.” Given the limited communication, travel diffi culties and time requirements to get anything accomplished quickly, it is a miracle that they achieved what they did.
I was lucky enough to be born and raised in the Philadelphia, Pennsylvania area, the centerpiece of our American history. No jokes… it was MUCH later than 1776… ha, ha.
and new generations of customers with diverse backgrounds and experiences. For example, a vendor or small casino operator aims to sell the business. In my experience, the process meant calculating the current value of the equipment. The inventory could include games, offi ce equipment, real estate, vehicles and much more. The seller then added on a multiple of the “good will” value of the customers, based on prior sales and lengths of contracts.
That is how we determined the worth of our companies. Today’s business world incorporates more complex elements. With social media, Internet, more television networks than ever before and email, the old marketing methods have gone the way of the dinosaur. We need to give it time to determine if this new type of alliance succeeds and prospers. If it does, we can expect more partnerships like this. In closing, I must give a shoutout to our U.S. readers on this special occasion. Happy 250th Birthday America! Depending on when you read this, the giant July 4th extravaganza will be a great memory.
Sharon Harris
Sharon has worked in the casino and coin- operated amusement industries since the 1980s. In the early 1990s, Sharon transferred her public relations and journalism skills to the gaming industry. She wrote her fi rst feature for Casino International predecessor EUROSLOT magazine in 1994.
As Associate Editor, North America for Casino International, Sharon has chronicled the explosive growth of U.S. gaming and reported on its most signifi cant changes. She has traveled across America to participate in dozens of industry events and has interviewed
hundreds of gaming operators,
executives and suppliers.
BMM qp strip CI
Feb26.indd 1
11/2/26 09:54
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84
