100 words minimum for each question thank you CASES CASE 5 THE CASINO INDUSTRY*
ID: 388676 • Letter: 1
Question
100 words minimum for each question thank you
CASES CASE 5 THE CASINO INDUSTRY* On February 21, 2013, Revel, the only new casino built in Atlantic City in almost a decade, was preparing to file for bankruptey. The $2.4 billion megaresort built on 20 acres of beachfront had opened only eight months earlier. "We will continue to improve customer service and roll out new amenities for our guests," said Kevin DeSanctis, the casino's chief executive officer.1 The fate of the Revel has reflected the effect of the recent economic crunch on casinos, particularly in places like Las Vegas and Atlantic City, as people have been orced to cut back on their spending Even as casinos struggle to show profits, there are growing concerns about the growth potential of places such as Las Vegas and Atlantic City over the longer term (see Exhibit 1). The economic slowdown forced potential visitors to put off their travel plans and find some type of casino activity closer to where they live As economie conditions improve, it is not elear how many of these patrons will return to these two major casino destinations. With some form of casino now allowed in over half of the states (see Exhibit 2) competition is developing all over the country, led by riverboat casinos and Native American casinos (see Exhibit 3) EXHIBIT 1 U.S. Casino Industry Gaming Revenues* 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Blillions of Dollars 36.71 35.64 34.60 34.28 36.22 37.52 35.27 32.77 28.72 28.07 Gaming revenues include the amount of money won by casinos from various gaming activities such as slot machines, table games, and sports betting. 2012 figure is author estimate, based on recent industry trends.
Explanation / Answer
Casino Industry Structure:
Casino industry having the revenue on an average of 30- 35 Billion Dollars. Type of casinos available are
Types of games provided by the Casinos are
Recently slot machines are gaining popularity in the recent days. 2/3rd of the Casino games revenue are coming from Slot machines.
Las Vegas & Atlantic cities are the major destinations for the Casinos.
Because of the recent economic growth crisis, people put off their travel plans and planning for their nearby casino places.
The following are the growing concerns for the Casino Locations in Las Vagas & Atlantic City
Strategic groups in the casino industry
Supplier Power
Threat of New Entry
Threat of substitution
Growth of gambling on the internet. Most Casino operators believing that internet based gambling could be the major threat for them.
Competitive Rivalry
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.