Introduction
Over the last fifty years, the Casino business has become a global industry and has earned huge, abnormal profits by offering entertainment services to its visitors. Las Vegas like other states and countries had been a leading Casino business city, but recently, it has been under competition from different casinos worldwide. The legalization of gambling in the USA to generate more taxes and encourage tourism led to competition in the casino industry. Several other Casinos that started operations in different regions, state that the revenue generated by these casinos exceeded the amount generated from casinos in Las Vegas.
Case Study
For 50 years, the casino business has been progressing daily, making $160 billion annually in the global industry. The records show that in the casino’s success, the United States is leading the charge; for that, Las Vegas and Atlantic City have been major sources of revenue. However, in the past few decades, the competition has increased because many other casinos have opened in other states, and for revenue generation casino management has to rely on gamblers only. There was a time when the dominance of Las Vegas’s and Atlantic City’s casinos could not be challenged, but now some local tycoons have established high-end casinos in different states of America, such as Macau. The gamblers and the casino tycoons have established well-developed and high-end casinos in Macau, which has caused the interest of the gamblers to divert from Las Vegas and Atlantic City to Macau. Due to this development of casinos in Macau, it has become the center of gambling. No doubt, Las Vegas, and Atlantic City have more than a dozen casinos, but the people are more attracted to the developed and managed World’s largest casinos.
Initially, the casinos were just established in a few states in the U.S. However, with time, gambling became a business and a way to earn revenue and in 1976, New Jersey passed legislation that allowed gambling in the United States. This approval of legislation gave rise to gambling and the development of casinos in the United States. Different Casino operators started establishing casinos in different states of the U.S. and provided great facilities to the gamblers to attract and facilitate them. For this purpose, casinos offered gamblers complimentary rooms, food, beverage shows, and other perks. Although these facilities were worth billions of dollars each year they became the main attraction for gamblers. Different operators started establishing casinos that attract visitors, such as beachfront, places near lavish hotels or restaurants and offered amenities such as tropical indoor pools.
Casinos became a main visiting point for gamblers by providing great facilities, but the attraction of gamblers was diverted from the U.S. by establishing new and developed casinos in Macau. The gamblers started visiting the casinos of Macau because they provided great facilities to the gamblers without any limitations or restrictions. Also, China provided great transport facilities to new visitors, so the number of gamblers increased rapidly. This became a problem of great concern for the United States because it affected the revenue generated by the casinos in the country. However, the development of casinos in Macau also gave rise to further problems. With time, Asia became interested in opening more gambling casinos, and in this way, several casinos were established in different countries of Asia. These countries include Singapore, Malaysia, Australia, the Philippines, South Korea, Japan, Sri Lanka, Taiwan, and Vietnam. In Asia, Singapore, and the Philippines have become extremely successful in establishing casinos and attracting more gamblers from all over the World.
It was challenging for Las Vegas and Atlantic City to regain their position for the gamblers and establish more casinos in these states. That is why these states started new strategies to attract more gamblers. These strategies include offering the gamblers dining, shopping, and other entertainment. In this way, the gamblers will visit these states and enjoy the casinos’ offers. Las Vegas also tried to attract the families to the casinos by offering circus performances, pirate battles, and animal reserves but these strategies failed to attract the gamblers, and the revenue of the casinos started to decline. However, the casino operators started other strategies to attract gamblers, offering nightclubs and adult offers. The city succeeded in attracting the gamblers but generated sinful roots.
However, the main problem started when the states of the United States, especially Las Vegas, started to offer great facilities to gamblers instead of increasing competition in casinos. On the other hand, casinos in Macau continued their development and raised great competition for Las Vegas and other casinos in the United States. As said by M. Coughlan;
“Gambling won’t go out of fashion. It will just become part of a wider offering.” (Casino19, n.d.)
Problems Faced by Casinos
The Las Vegas and Atlantic City casinos faced great problems for several reasons. The very first reason is the establishment of casinos in Macau. Before the establishment of a casino in Macau, Las Vegas was the only market for gamblers, so they were enjoying great revenue from their casinos. However, when the gambling operators focused on establishing a casino in Macau, visitors began to visit Macau and other casinos in the Asian regions. It is evident that the emergence of Macau’s casinos encouraged and motivated business operations in Asia, which in turn became possible due to the improved infrastructure and enhanced communication. Conclusively, the emergence of casinos in Macau led to increased government expenditure on improving infrastructure. The improved infrastructure new ways of communication and the expansion of the Chinese market in Asia have eased the way of casino business people in Asia, further worsening the Las Vegas casino market.
Also, the Asian casinos developed high-end casinos with great developments, which increased the number of gamblers in Macau and other Asian regions, and the revenue generation of Las Vegas and Atlantic City due to casinos went on the decline. To control revenue decline, the casinos started offering different entertainment to gamblers, which became the reason for establishing sinful roots in the states. This gave rise to several problems for the casino operators in Las Vegas, Atlantic City, and other states of the United States.
Solutions and its Implementation
The major two problems are the increasing competition of casinos worldwide, which is affecting the Las Vegas casinos’ revenue, and the increasing sinful roots in the states due to offers of several entertainments to the gamblers. To solve these problems, two solutions can be really helpful which are;
- Development of infrastructure and communication.
- Establishment of new restricted policies regarding gambling and casinos.
For the implementation of the above-mentioned solutions, the gambling operators and the owners of casinos must arrange meetings and conferences in which they must discuss the significant actions that the US government should take to protect Casino businesses in Las Vegas like increased taxes and other restricted gambling laws to prevent Las Vegas casinos from external competitors. All the casino owners must join their hands and ask the US government to establish new legislation. The legislation enforcement team and the political leaders must also play their essential role and should develop a new law according to which all casino owners will provide casino licenses and will be restricted to offering to gamble with positive entertainment, such as circus performances or dining. The gambling operators must not offer the worst adult entertainment to the gamblers, such as nightclubs and adult entertainment. If any casino is found to provide adult entertainment to the gamblers then strict action should be taken against that owner and the casino license should be dismissed (Wessener, 2014).
In addition to this, the government should design restricted business policies such as restricted business areas. In this way, the casino operators will establish the casinos in areas where the entertainment of the gamblers will not affect the lives and protection of the citizens of the United States. In this way, the casinos may offer great entertainment to the customers and can establish their hotels, restaurants, pool areas, and other entertainment regions where the gamblers will be able to the gambler, enjoy and relax. Casino management in Las Vegas should improve internal and external communication within the organization. i.e., to maintain long-term relationships with the customers. For this purpose, the casinos will ask for the customer’s details, such as email addresses and phone numbers. Whenever the casino gives customers a new offer, the customer may be informed by email or SMS. In this way, the customers will be attracted to the casinos and visit Las Vegas Casinos. This will help the casinos of the U.S. to meet their competitors worldwide and increase their revenue generation (Vegas, n.d.).
Work Cited
Casino19. (n.d.). Case 19 The Global Casino Industry. Retrieved from https://cb.hbsp.harvard.edu/cbmp/context/coursepacks/72231495
Vegas, L. (n.d.). Las Vegas Massacre: Problem, Cause—and Solution. Retrieved from https://www.thetrumpet.com/16399-las-vegas-massacre-problem-cause-and-solution
Wessener, B. (2014). A hot steak for Macau. NewYork Times.
