Description
SHORT DISCUSS
MHA 663-1001 Current Trends in Gaming
●
Examine the mechanisms and techniques employed in the management
of casino companies.
●
Describe how casino management fits into the current, broader study
trends of hospitality management.
Readings:
●
Douglass, W.A., & Raento, P. (2004). The tradition of invention:
Conceiving Las Vegas,
Annals of Tourism Research, 31
(1), 7-23.
●
Eadington, W. (2009). Capital, Rent-Seeking and Risk Taking in the
Casino Industry and the Economy at Large.
International Gambling
Studies, 9
(3), 181- 187.
●
Lucas, A. F. (2013). Examining the Link Between Poker Room Business
Volume and Gaming Activity in Slot and Table Games: A Closer Look at a
Key Assumption in the Full Service Theory.
UNLV Gaming Research &
Review Journal, 17
(1), 43-63
Current Trend Article Discussion – Las Vegas goes “All In” on Formula 1 Racing
With the negative affects of Covid-19 in the rearview mirror, casino gaming revenue is going full throttle. Las Vegas officials and casino gaming owners are going “All In” to bring Formula 1 (F1) Racing to town.
The city of Las Vegas made a major investment to bring the global phenomenon of Formula 1 Racing to the Strip. The citizens of Las Vegas and thousands of casino workers endured many months of traffic challenges and time delays as the city prepared to showcase the event to the world.
Casino operators engaged in creative ways to ensure their team members supported the operation and navigated their way to the property as the Las Vegas Strip was the actual venue for the race track. The numbers are now in. Share with your colleagues your take on both the Micro, getting the team members to the property and the Macro, the economic impact of F1 in Las Vegas.
Team Member IncentivesLinks to an external site.
Las Vegas is on an epic economic rollLinks to an external site.
F1 Numbers are inLinks to an external site.
F1 Local Business ChallengesLinks to an external site.
Interview with Michael LawtonLinks to an external site. – Senior Economic Analyst with the Nevada Gaming Control Board.
******************From Professors’s discuss post***********************
On a personal level, many things in Las Vegas are an inconvenience. Traffic is just one thing people, organizations, the city, county, and state have to keep in mind when in the destination area of the Las Vegas Strip. People have always made sacrifices to get better business in the area. Parking somewhere other than at their place of work parking garage and having to take a shuttle, bus or walk is a small inconvenience to be a part of guaranteed history. Most everyone involved made more money as a result of the F1 event. Prestigious internationally recognized events are a good thing for everyone named above. F1 First raced in Las Vegas in the years 1981 to 1984. The events did not go as planned and the contracts were not renewed. Caesars purchased the rights to the event in hopes of gaining about one dozen new big-time gamblers (1). That did not happen stated Caesar’s Marketing Director Bill Weinberger. Las Vegas has been a city of innovation from the beginning as a stop-through town for the railroad from Salt Lake City, Utah to Los Angeles, California, with all the world-class offerings the city has today. Other destination cities around the world emulate Las Vegas and its sought-after shopping, entertainment, and gaming offerings (2). Innovation is a never-ending process; people personally suffer alone or with others. Las Vegas is where they have decided to live. Imagine the Las Vegas Strip and neighboring streets as an open space. A developer and casino resort management are deciding what to do inside a casino resort, yet within the Las Vegas Desert Valley. The state, County, and City understand what they have when it comes to the area and the strip. Throughout the progression of the valley, the full-service theory (3) applies to the infrastructure created that provides the most profitable experience for visitors and operators of casino resorts. That is how the state gets paid and becomes more than just relevant internationally by doing so. State officials along with developers and casino executives do understand the need, at some point, to make critical decisions about their properties as a whole. That is just the way Las Vegas’s history has played out. Nevada has earned over a billion dollars in gaming revenue for 33 consecutive months (4). Las Vegas just grossed the second-highest gaming revenue in its history in the historically slower month of November. This means the spillover effect (3) from F1 being brought to Las Vegas has attracted its international fans also. With year-over-year increases of .8% in visitors, and 208% or $178MM from Baccarat, ADR has improved from $200.00 to $270.00. Las Vegas has a contract with F1 for 10 years. The inaugural year was part of the $1.37 B in gaming revenue grossed by the state of Nevada, making it a record (4). The F1 track map and articles make a strong argument to create a permanent F1 track similar to the one used during the race. F1 purchased a property for $250 MM (5) that will become part of the Las Vegas experience. There are a lot of people who like to drive fast cars, look at them and buy them. Some of the resorts did not do as well as others, but not as badly as some of the smaller surrounding businesses that were cut off from the traffic leading up to the event (6). F1 did what it was supposed to do, it brought people to Las Vegas to spend their money. Much of the indirect revenue (3) in the area of the Las Vegas Strip was a result of F1. Area establishments cherry-picked (3) from a big-time event that cost over $650 MM (5) to bring to the city in hopes of creating a significant economic impact for the betterment of everyone who travels to the area and within the state as a whole. The businesses inside of the F1 course and the properties lining the track on the outside are fortunate. They are either going to get bought out or merge to create something bigger than what they already have with the business owners. Whatever they decide to do, and however it ends up getting done it will be another incredible expansion of the Las Vegas legacy of innovation. No historical casino resort has ever been too important to not implode to make way for the betterment of all, neither will side street neighborhood businesses. People and organizations are inherently risk-takers, taking a chance to get involved with anything that could make their lives better (7). It does not matter whether we are talking about Mavericks, the Mob or the MBAs, casino resorts and art institution owners have also added cultural value to their art collections. This latest campaign in Las Vegas is going after the wealthy international people who live for the vibe of life. Surrounding their lives with people and things like F1 drivers and fast cars themselves, Las Vegans always test the limits of humans and machines for the rush of victory (8).
(1) Langeler, John (2023), Formula One was in Las Vegas 40 Years Ago But it was all very different, 8 News Snow https://www.8newsnow.com/news/local-news/formula-one-was-in-las-vegas-more-than-40-years-ago-but-it-was-all-very-different/Links to an external site.
(2) Douglas, W A., Raeton, P (2004). The Traditions of Invention Conceiving Las Vegas. Annals of Tourism Research, 31(1), 7-23
(3) Lucas, A F. PhD. Examining the Link Between Poker Room Business Volume and Gaming Activity in Slot and Table Games: A Closer Look at a Key Assumption in the Full Service. UNLV Gaming Research & Review Journal, 17(1), 43-63
(4) Morrow, S, Lawton, M (2024). Interview Economic impact of F1 racing to Las Vegas and Vevade Gaming revenue summary
(5) Bushard, Brian (2023), Prices Plummet For Las Vegas F1 Grand Prix-Here’s Why, FORBES https://www.forbes.com/sites/brianbushard/2023/11/14/prices-plummet-for-las-vegas-f1-grand-prix-heres-why/?sh=39a5492ed2a0Links to an external site.
(6) Lane, Tiffany (2024), Las Vegas Strip businesses frustrated after losing millions to Formula One road closures, News 3 LV https://news3lv.com/news/local/las-vegas-strip-businesses-frustrated-after-losing-millions-to-formula-one-road-closuresLinks to an external site.
(7) Capital, rent-seeking, and risk-taking in the casino industry and the economy at large (2009). Routledge, Tayor & Francis Group. International Gambling Studies 9(3), 181-187
(8) Balla, Elyssa (2023), F1 G-Force: How Many G’s Can A F1 Car Pull?, f1 chronicle https://f1chronicle.com/f1-g-force-how-many-gs-can…Links to an external site.
