Casino Industry Strategy Case Study
Assignment 1 - the Casino Industry 1. Introduction - current situation overview
The three most common forms of casino gambling in the USA are the land-based, the river-boat and the Native American gambling.
During the year 2009, the commercial casino industry used to employ about 375000 people earning around $13 billion in wages, making it one of the biggest industries in the USA.
Commercial casinos are a major part of the actual entertainment landscape. For proof, ¼ of the U.S. adult population spends money at a casino at least once a year.
Casinos are one of the main contributors to the economy of the USA contributing to this with total revenue around $32.5 billion in 2009. They are very important to the states in which they are settled thankful the employment they offer and the numerous business opportunities for local producers. Casinos provide more than $5.6 billion in direct gaming tax revenues, which of course help local and national economies.
Moreover casinos are a way to increase diversity as a business way of doing: they use to employ more minorities than the national U.S. In the same way they also bought more than $631 million in products/services from various sellers. Casinos and racetrack casinos (Racinos) create an entire economy based on entertainment and gambling and this for 20 states in the USA.
With the subprime and the resulting global crisis, the revenue in the sector went down to 4.7% in 2008, with a continuous tendency for year 2009. Indeed, the gross gaming revenues compared to 2007 have kept decreasing since February 2008. Consequently the monthly revenue decreases became much more important as the crisis in the USA and the rest of the world had negative effects.
The gaming industry suffers from the combined two major crises which occurred these previous years, the precipitous fall in consumer spending and of course the national credit crunch.
With the apparition of the recession, American consumers who go to casinos
The three most common forms of casino gambling in the USA are the land-based, the river-boat and the Native American gambling.
During the year 2009, the commercial casino industry used to employ about 375000 people earning around $13 billion in wages, making it one of the biggest industries in the USA.
Commercial casinos are a major part of the actual entertainment landscape. For proof, ¼ of the U.S. adult population spends money at a casino at least once a year.
Casinos are one of the main contributors to the economy of the USA contributing to this with total revenue around $32.5 billion in 2009. They are very important to the states in which they are settled thankful the employment they offer and the numerous business opportunities for local producers. Casinos provide more than $5.6 billion in direct gaming tax revenues, which of course help local and national economies.
Moreover casinos are a way to increase diversity as a business way of doing: they use to employ more minorities than the national U.S. In the same way they also bought more than $631 million in products/services from various sellers. Casinos and racetrack casinos (Racinos) create an entire economy based on entertainment and gambling and this for 20 states in the USA.
With the subprime and the resulting global crisis, the revenue in the sector went down to 4.7% in 2008, with a continuous tendency for year 2009. Indeed, the gross gaming revenues compared to 2007 have kept decreasing since February 2008. Consequently the monthly revenue decreases became much more important as the crisis in the USA and the rest of the world had negative effects.
The gaming industry suffers from the combined two major crises which occurred these previous years, the precipitous fall in consumer spending and of course the national credit crunch.
With the apparition of the recession, American consumers who go to casinos
References: • Kelly, Joseph. 1995. "Indian Gaming Law." Drake Law Review. 43:3, pp. 501-45. • Margolis, Jeremy • Walker, Douglas M. and John D. Jackson. 1998. "New Goods and Economic Growth: Evidence from Legalized Gambling." Review of Regional Studies. 28:2, pp. 47-69. • Stitt, Grant. Effects of Casino Gambling on Crime and Quality of Life in New Casino Jurisdictions, Final Report. National Criminal Justice Reference Service. NCJ 187679. Nov. 2000. • “Police in casino towns see few problems from gambling facilities,” by Bruce Schreiner, July 13, 2007