Ten Ways to Make Headline Entertainment Profitable

Posted on July 16, 2006

As the price of headline casino entertainment grows, a loud but vocal minority of casino executives have begun to question the expense associated with entertainment. These people tend to be the financial professionals within the casino organization who believe that such programs should be measured. They may also be of the belief that casino headline entertainment programs seem to exist solely to fund the retirement programs of aging rock stars who, like most baby boomers, neglected to properly plan for their golden years and are now forced to work extra hard while they still retain some marketable skills. This article is not for those naysayers but is written for those that must justify their entertainment programs in the wake of what may be sound logic and reason. Skeptics are asked to ignore this article. Those that must justify their entertainment programs are invited to read on.

There are ten simple steps that entertainment and marketing executives can take to better justify the expense of headline entertainment. By following these suggestions entertainment programs will always make money despite what may be revealed in property profit and loss statements.

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The Coming of the Entertainment Superstore

Posted on June 17, 2006

Casino development in Las Vegas has historically acted as a bellwether for the development of gaming and nongaming amenities in regional markets. Development trends such as the multi-station buffet, multiple dining options, casino food courts and showrooms were first introduced in Southern Nevada and eventually exported to other markets. Casino developers in regional markets have traditionally looked to Las Vegas to see what works and what doesn’t work; what is particularly appealing to gamers and what is not and adopted those development trends that hold the greatest promise.

While Strip properties often offer the most glamorous of amenities, it is Las Vegas’s locals casinos that have developed amenities that are most relevant to casinos in regional markets. Beginning with the opening of Sam’s Town Casino in 1978, followed by the Gold Coast Casino, the whole concept of a locals casino was first developed in Southern Nevada along with the suite of amenities that held appeal to local gamblers.

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Designing the Right Amenity Mix

Posted on May 16, 2006

When leadership decides to commit to an expansion of its gaming facility or a wholesale replacement of its casino, the first step is to determine the proper size of the proposed gaming operation. This exercise involves examining the current utilization of the existing facility, the size of the primary and secondary markets that the casino will serve and the gaming behavior of those markets. While not a precise science, determining the right number of gaming devices, table game positions and casino square footage is based on proven mathematical models. Although
complex, these models can accurately determine the proper sizing of a casino.

The next step is to determine the appropriate mix of nongaming amenities that will support the gaming operation in order to maximize gaming revenue. Non gaming amenities are most often comprised of restaurants, hotel rooms, meeting and banquet facilities, entertainment venues, retail outlets and leisure/recreation operations such as golf courses, movie theatres, nightclubs, bowling centers, arcades and child care facilities. While determining the right amount of hotel rooms and banquet/meeting facilities is primarily an empirical exercise, identifying those other amenities that will maximize gaming revenue and best meet the needs of the market requires far more investigation.

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