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2 (TWO) Peer reviews/responses. Casual writing
1.So after reviewing everything, I am both excited to see what kind of entertainment complexes the future will hold, but I am also wary of the problems that may arise. I will attempt to address my concerns in the responses to each section asked of us in this week’s discussion.
Integrated Partnerships in the Casino-Sports Landscape:
Because I currently work specifically in sports betting regulation, I have watched this relationship evolve in real time in Colorado. We are already seeing some very minor versions of this being played out. The football stadium in Denver has at least one (I think it is more, but I know of one specifically) bar that is owned and operated by BetMGM. While state law prohibits the business from providing devices and terminals to places wagers, this does not stop them from placing information on various screens listing wagers, odds, and other information. The patrons are then completely free to place wagers using their own devices on scene. It has made for a very busy scene at the stadium and it has been interesting to see. I don’t see an issue with this relationship on the surface, but we have already had some issues with the legalities of NFL employees wagering on NFL events, and this is going to continue to be an issue that will require heavy monitoring, especially as pro sports becomes even larger partners in the gaming industry.
Sustainability and Eco-Friendly Practices:
In this particular subject, I will defer to the information presented on the video conference. I love the idea of trying to reduce the footprint by going “down” as stated. Keeping the footprint on the surrounding area to a minimum while still providing a new and modern concept (I love the idea of a hotel/casino built around a stadium in its entirety a very interesting if huge concept.
Personalized and Adaptive Experiences
I don’t have any specific thoughts on this directly, but I feel like my response in the next section covers a similar issue.
Integration of New Technology:
Last semester I had a discussion about this subject, and I stand by what I said at that time. I would love to see, as augmented reality (AR) becomes more main stream, a great many AR enhancements to the casino experience. Having slot machines that interact with AR so when someone sits down at a machine suddenly they have several floating screens that are a part of the interaction would be very interesting. Also AR could help someone navigate a casino floor quickly to find exactly what they want. Further, allowing someone the use of AR while they are at a table could allow them to enjoy live entertainment elsewhere in the resort while still playing at the tables. The problem will be with protecting the casino from cheating with these same AR devices….I will be interested to see what direction this technology takes.
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2. This week’s discussion includes multiple topics, each of which could have been its own discussion. That said, here are my key takeaways, experiences, and findings based on my research.
Integrated partnerships in the casino-sports landscape
This area has quite a bit of history already, including recent historic events such as the repeal of the Professional and Amateur Sports Protection Act PAPSA (Today, 2018), and the hosting of a Superbowl LVIII (58) in Las Vegas (Nfl, 2024). These are to date the most successful forms of casino operator-to-sports partnerships, in that they create an accretive relationship for casino operators, and even casino suppliers, evidenced most recently by the first ever NFL-themed slot machine by Aristocrat Technologies (Gaming, 2023).
Separately, the idea of synergies between stadiums and casinos should be approached with caution. While some Las Vegas resorts have experienced success hosting sporting events within their arenas, those arenas have been spec’d for multi-use purposes. Additionally, Las Vegas is a destination market, with the average customer visiting for 3.4 nights according to the Las Vegas Convention and Visitors Authority LVCVA (Frequently Asked Las Vegas Questions | LVCVA Research, n.d.).
In markets like Philadelphia, where the Cordish Companies built Live! Casino & Hotel Philadelphia in the same vicinity, literally across the street from Citizens Bank Park (home of the Phillies), Lincoln Financial Field (home of the Eagles), and Wells Fargo Center (home of the Flyers), has resulted in a facility that consistently lands in last place in terms of revenue in its market (Monthly Gaming Revenues, 2024), often tied or only bested by Harrah’s Philadelphia which is next to a prison.
Sustainability and eco-friendly practices
Companies such as Las Vegas Sands (Las Vegas Sands Corp. – ESG, n.d.) and MGM Resorts International (Social Impact and Sustainability Report Archive, n.d.) have been publicly publishing Sustainability Reports for over a decade. A quick review of these reports’ sheds light on both companies’ efforts in the areas of energy efficiency, water conservation, waste management, community engagement and green building and design practices. MGM Resorts takes it a step further, even committing to ten of the United Nations Sustainable Development Goals (THE 17 GOALS | Sustainable Development, n.d.) within their plan, most recently being recognized for Environmental Excellence from the CDP, earning a spot on the prestigious A list (Pappu & Pappu, 2024b).
This part of a company’s values is so important in fact, that financial service organizations like Morningstar, which rate companies’ investment worthiness, have developed Sustainability Index Scores, to help investors evaluate a company (Company ESG Risk Rating – Sustainalytics, n.d.).
Coupled with changing consumer sentiment about ESG practices, companies not putting Environmental, Social, and Governance ESG matters front and center, are being left behind whether or not they realize it ultimately to be judged in the (future) court of public opinion.
Personalized and adaptive experiences
All generations, from Baby Boomers to Generation Alpha, have come to welcome technology into their lives, mainly on the heels of accelerated mobile proliferation, and the growth in utilization of e-commerce and resulting big data. The many ways this makes user’s lives easier range from suggestive selling while shopping online, to “because you liked” categories on social streaming services like Netflix, Disney+, and Hulu (TechCrunch Is Part of the Yahoo Family of Brands, 2022).
Casinos can capitalize on this, through the implementation and enhancement of their own mobile applications. Imagine a brick-and-mortar application that indexes known customer habits through its collection of data, and automatically notifies a guest about casino events they frequent more than others. You can imagine this expanded to offers during slow nights at a restaurant, that a customer has shown a preference for. All can be accentuated by placing the guest around known acquaintances in both cases and arming staff with known drink and seating preferences.
Integration of new technology
As we look into the future, one thing is certain; digitalization is inevitable. In fact, it’s encouraged and welcomed with open arms. I am much like the next person, who wants to believe that there will always be a place for good old-fashioned human interaction. I stand fast in that belief and can see that it will be available as an option. To be determined, however, is at what cost to the guest? Will the continued employee preferences, accelerated by COVID-19 and wage pressures, make such experiences available to all customers? Additionally, once the scalability and accompanying profit of digital businesses come further into focus, how many operators will be left to offer said experiences?
Current trends in US iGaming, show that the commercial digital market is growing rapidly, with iGaming revenue surpassing $6 Billion in 2023, while the broader industry set all-time records at $66.52 billion for the same calendar year.
This is despite very early-stage online gaming platforms, without the current ability for customers to plan in a Virtual Reality casino from home. Imagine when a customer can belly up to a “live” table, look left and right and see the people next to them, and celebrate and socialize with them against the house, from the comfort of their couch?
Will this be a new segment of customers? Will this result in a larger share of wallets from existing customers? All the above? Time will tell, and as a betting man, I bet extraordinary growth is on the horizon.
