Academic Master

Business and Finance

Casino business in Las Vegas and Atlantic City


Over the last fifty years, Casino business has become a global industry and earning 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

Since 50 years, the casino business is progressing day by day and making $160 billion annually in the global industry. The records show that the in the success of the casino, United States is leading the charge and for that, the Las Vegas and Atlantic City have been a major source of revenue. However, from the past few decades, the competition is increasing because many other casinos have opened in other states and for the revenue generation casino management has to rely on gamblers only. There was a time when the dominance of the Las Vegas’s and Atlantic City’s casino could not be challenged, but now some local tycoons have established the high-end casino in different states of America, such as Macau. The gamblers and the casino tycoons have established well-developed and high-end casinos in Macau due to which the interest of the gamblers has diverted from Las Vegas and Atlantic City to Macau. Due to this development of casinos in Macau, now 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 towards the developed and managed World’s largest casinos.

Initially, the casinos were just established in few states in the U.S. However, with the passage of time gambling became business and the way to earn revenue and in 1976, New Jersey passed legislation which allowed the gambling in the United States. This approval of legislation gave rise to gambling and development of casinos in the United States. Different Casino operators started establishing casinos in different states of U.S. and provided great facilities to the gamblers to attract them and to facilitate them. For this purpose, casinos offered complimentary rooms, food, beverages shows, and other perks to the gamblers. Although these all facilities were worth billions of dollars each year this became the main attraction for the gamblers. Different operators started establishing casinos at the places which can be the attraction for visitors, such as beachfront, a place near lavish hotels or restaurants, and offered amenities such as tropical indoor pools.

By providing great facilities, casinos had become a main visiting point for gamblers, but then 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 were providing great facilities to the gamblers without any limitations of restrictions. Also, China provided great transport facilities to the new visitors due to which the number of gamblers increased rapidly, and this became the problem of great concern for the United States because it affected the revenue generated by casinos of U.S. However, the development of casinos in Macau also gave rise to further problems. With the passage of time, Asia became interested in the opening of more gambling casinos, and in this way, several casinos were established in different countries of Asia. These countries include Singapore, Malaysia, Australia, Philippines, South Korea, Japan, Sri Lanka, Taiwan, and Vietnam. In Asia, the Singapore and Philippines have become extremely successful in establishing the casinos and to attract more gamblers from all over the World.

Now it was challenging for the Las Vegas and Atlantic City to regain its position for the gamblers and to establish more casinos in these states. That is why these states started new strategies to attract more gamblers. These strategies include offering dining, shopping, and other entertainments to the gamblers. In which way the gamblers will visit these states and will enjoy the offers of the casinos. 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, then the casino operators started other strategies to attract the gamblers and started offering nightclubs, and other adult offers via which the city because successful in attracting the gamblers but this generated sinful roots in the city.

However, the main problem started when the states of United States, especially Las Vegas, started to offer great facilities to the gamblers instead of increasing competition in casinos. On the other hand, casinos in Macau continued their development and raised great competition for the Las Vegas and other casinos of 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 casinos in the Las Vegas and Atlantic City faced great problems because of 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, and so they were enjoying great revenue by their casinos. However, when the gambling operators focused the establishment of a casino in Macau, then the visitors began to visit Macau and other casinos of the Asian regions. It is evident that the emergence of Macau’s casinos encouraged and motivated the operations of the business 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 expenditure on improving infrastructure from the government. The improved infrastructure and new ways of communication and the expansion of the Chinese market in Asia have eased the way of casino business people in Asia which further worsened the Las Vegas casino market.

Also, the casinos of Asia developed the high-end casinos with great developments, due to which the number of gamblers increased in Macau, and other Asian regions and the revenue generation of the Las Vegas and Atlantic City due to casinos went on the decline. To control the revenue decline, the casinos started to offer different entertainments to the gamblers which became the reason of the establishment of sinful root in the states. This gave rise to several problems for the casino operators in Las Vegas, Atlantic City, and other states of United States.

Solutions and its Implementation

The major two problems are the increasing competition of casinos all over the world 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 infra-structure 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 casino must arrange meetings and conferences in which they must discuss the significant actions that should be taken by US government 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 to gather to ask the US government for the establishment of 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 license and will be restricted to offer to gamble with positive entertainments, such as circus performance or dinning. The gambling operators must not offer the worst and adult entertainments to the gamblers, such as nightclubs and adult entertainments. In case if any casino is found in providing 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 the areas where the entertainment of the gamblers will not affect the lives and protection of the citizens of United States. In this way the casinos may offer several great entertainments 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. Casinos management in Las Vegas should improve communication internally within the organization and externally as well. i.e., to maintain long term relationship with the customers. For this purpose, the casinos will ask for the details of the customers, such as email address and phone number. Whenever the casino gives any new offer to the customers, then the customer may be informed by email or by SMS. In this way, the customers will get attracted towards the casinos and will visit Las Vegas Casinos. This will help the casinos of the U.S. to meet its competitors worldwide and to increase the revenue generation by the casinos (Vegas, n.d.).

Work Cited

Casino19. (n.d.). Case 19 The Global Casino Industry. Retrieved from

Vegas, L. (n.d.). Las Vegas Massacre: Problem, Cause—and Solution. Retrieved from

Wessener, B. (2014). A hot steak for Macau. NewYork Times.




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