Vegas is Not the Competition

Brendan Bussmann

Vegas is Not the Competition

A critical factor in determining the success of a casino operation is to correctly define the competition. By properly delineating one’s competition, a casino can design a facility that best meets the needs of its market, optimize the allocation of precious capital, forestall attempts by competitors to gain an advantage and more prudently spend marketing dollars. One of the single biggest mistakes an Indian casino can do is define Las Vegas as one of its competitors.

Casinos that make the assumption that Las Vegas is part of their competitive mix do so on the flawed hypothesis that, because some of their customers periodically visit Las Vegas, the casino can divert one or two of those visits to their property. While at first blush this reasoning appears sound, a closer examination of customer behavior reveals that this logic is flawed. These casino operators simply do not understand the basic reasons gamblers choose periodically vacation in Las Vegas and the reasons visit Indian casinos with such great frequency.

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