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Published by: Packaged Facts
Published: Jun. 1, 1996 - 238 Pages Now 50% off the original sale price of $2,750.
Table of Contents
- Executive Summary
Introduction
- Market Definition
- Most Regulation Is by States
The Market
- Revenues Surpass $21 Billion in 1994
- Factors in Future Growth
- Greater Acceptance of Gambling
- Other Positives
- Casino Gaming Revenues to Break $31 Billion in 2001
- Handle to Approach Three-Quarters of a Trillion Dollars in 2001
- [Table] Casino Gaming Gross Revenues (GGR),
Handles, and Win Estimates, 1991-1995 (dollars)
Slots Are Biggest Contributor to Revenue
- [Graphic] Share of U.S. Casino Gaming Revenue and
Handle: by Venue/Game, 1994 (percent); Venue/Game:
Nevada/New Jersey Slots, Nevada/New Jersey Table
Games, Indian Reservations, Riverboats, Noncasino
Devices, Card Rooms
- Casino Gaming Accounts for Half of Total Gaming Revenues
- [Table] U.S. Gaming Handle and Gross Revenue:
By Type of Gaming, 1994 (dollars and percent);
Games: Casino Gaming, State Lotteries, Parimutuels,
and Charitable Gaming
The Marketers
- About 250 Casino Gaming Marketers
- Most Marketers Are Specialists or Hoteliers
- In Nevada, Circus Circus and Mirage Are on Top
- In National Market, Harrah's Dominates, Followed by Trump
- Trump the King of Atlantic City
- Las Vegas versus Atlantic City versus New Orleans
- Casino Gaming Marketers Up Ad Spending to $89 Million in 1995
At the Casino Level
- Nevada Casino Win Percentages
The Consumer
- Almost 33 Million Visit Casinos
- Las Vegas, Atlantic City Still Top Destinations
- Middle-Aged Persons Show Strongest Incidence of Visits
- Various Factors Suggest Relative Affluence
- Introduction
The Scope of This Report
Glossary of Casino Industry Terms
- Bank Games
- Bookmaking or Book (Verb, to Make Book)
- Card Room
- Casino
- Casino Advantage, or House Advantage
- Commission
- Comp
- Drop or Stake
- Family Entertainment
- Feeder Market
- Gross Wager
- Handle
- High Roller
- Hold or Hold Percentage
- Land Casino
- Loose
- Money Staked
- Net Receipts
- Offshore Gaming
- Parimutuel(s)
- Progressive
- Pit
- Retention
- Revenue or Gross Revenue
- Shoe
- Table Games
- Takeout or Takeout Percentage
- Turnover
- Velocity
- Win
- Casino Games And Venues
The Games
- Mostly Bank Games
- Table Games
- Baccarat
- Blackjack
- Craps
- Mini-Baccarat
- Poker
- Roulette
- Wheel of Fortune (or of Chance)
- Slot Machines
- Video Poker
- Keno
- Bingo
- Bookmaking
- Tournaments
- Gross Margins of Profit on Casino Games
The Venues
- Land Casinos
- Riverboats
- Native American Reservations
- Card Rooms
- Broad Range of Venues for Noncasino Devices
- Bingo Halls
- Oceangoing Cruise Ships and Casino Boats
- Offshore Gaming
- Cyberspace
- Most Casinos Located a Bit Away from Population Centers
Regulation
- Most Regulation Is by States
- Much Litigation
- The IGRA Now Weakened by Supreme Court
- A Challenge to IGRA
- Slowing the Spread of Native American Venues
- Is Bad for Whole Industry
- A Wave of Other Setbacks
- A Federal Review of U.S. Gambling
- Lawlessness on the Cyber-Frontier
- How Nevada Protects Casino Gaming
- Louisiana's Problems Regulating Devices at Truck Stops
- Casino Advertising Regulated
- Chart of Gaming per State
- [Chart] Legalization of Gaming: By State and Type of
Game (1995); Type: Casinos, Noncasino Devices, Card
Rooms, Sports Book, Lotteries, Parimutuel Betting,
Charitable Games and/or Bingo
- The Market
- [Graphic] Size and Growth of U.S. Casino Gaming
Handle, 1991-2001 (dollars)
- [Graphic] Size and Growth of U.S. Casino Gaming
Gross Revenue, 1991-2001 (dollars)
Market Size and Growth
- Revenues Surpass $21 Billion in 1995
- 1995: A Year of Adjustment
- Win Share Relatively Constant
- [Table] Size and Growth of U.S. Casino Gaming
Market: By Gross Revenues (GGR), Handles, and
Win, 1991-1995 (dollars)
Factors in Future Growth
- Greater Acceptance of Gambling
- But Many Jurisdictions Still Resistant
- Lotteries Pave the Way for Legal Casinos
- Indian Gaming Will Continue to Expand Market
- The Graying of America Is a Positive
- [Table] Projections of Resident U.S. Population: By Age,
1995-2000 (number and percent); Age Groups: 17 or
under, 18-34, 35-54, 55 and over
- Use of Mainstream-Style Marketing Techniques
- Family Entertainment Receives Mixed Reviews
- Hollywood Loves Vegas
- At-Home Gaming Still an Uncertain Factor
Projected Revenue and Handle
- Casino Gaming Revenues to Break $31 Billion in 2001
- Handle to Approach Three-Quarters of a Trillion Dollars
- Win Percentage to Trend Slightly Lower
- [Table] Projected Size of U.S. Casino Gaming Market:
Gross Revenues (GGR), Handle, and Win, 1996-2001 (dollars)
Market Composition: By Type of Venue or Game
- Special Note on Venues/Games Data
- Slots Are Biggest Contributor to Revenue
- [Table] Share of U.S. Casino Gaming Handle and Gross
- Revenue: By Type of Venue or Game, 1994 (percent);
Venue/Game: Nevada/New Jersey Slots, Nevada/
New Jersey Table Games, Indian Reservations, Riverboats,
Noncasino Devices, Card Rooms, Cruise Ships, Bookmaking
- Las Vegas Revenues by Game
- [Table] Las Vegas Casino Gaming Gross Revenue Share:
By Type of Game, 1995 (dollars and percent); Game:
Slots/Video Poker by Denomination, Blackjack, Craps,
Roulette, Wheel of Fortune, Baccarat, Mini-Baccarat,
Keno, bingo, Caribbean Stud, Let It Ride, Pai Gow,
Pai Gow Poker, Red Dog, Race Book, Sports Book
- Atlantic City Revenues by Slots versus Tables
- Table Games Once Outperformed Slots
- Traditional Land Casinos Losing Share
- [Table] Share of U.S. Casino Gaming Gross Revenues:
By Traditional versus Nontraditional Casino Venues,
1990-1994 (percent)
Market Composition: Regionality
- Nevada and New Jersey Still Have the Most Action
- [Table] Share of U.S. Casino Gaming Gross Revenues
(GGR): By State, 1994-1995 (dollars and percent);
State: Nevada, New Jersey, Other
- A Picture of Regional Potential
- [Table] Visitation of Casinos: By Visitors' Region of
Residence, 1994 (number and percent); Region:
West, Northeast, Midwest, South
Market Composition: Seasonality
- Mother Nature, Holidays, Weekends All Shape Revenue Pattern
Market Composition: Casino Gaming Within the Larger Picture
- Casino Gaming Accounts for Half of Total Gaming Revenues
- [Table] Share of U.S. Gaming Handle and Gross Revenue:
By Type of Gaming, 1994 (dollars and percent); Gaming
Type: Casino Gaming, State Lotteries, Parimutuels,
Charitable Gaming
- The Marketers
The Marketers
- About 250 Casino Gaming Marketers
- Most Marketers Are Specialists and/or Hoteliers
- Major Marketers Also Offer Management Services
- Native American Tribes
- More and More Public Companies
- [Chart] Leading Casino Gaming Marketers and Their
Venues; Marketers: Ameristar Casinos, Aztar Corpora-
tion, Bally Entertainment Corp., Binion's Horseshoe
Hotel & Casino, Boyd Gaming Corporation, Circus Circus
Enterprises, Claridge, Elsinore Corporation, Gordon
Gaming, Harrah's Entertainment, Hilton Hotels Corpora-
tion, Hollywood Casino Corporation, ITT Corporation,
Jackpot Enterprises, Las Vegas Sands, Mashantucket Pequot
Tribe, MGM Grand, Mirage Resorts, Resorts International,
Rio Hotel & Casino, Sahara Gaming Corporation, Show-
boat, The Trump Organization
Marketer Shares
- Special Note: Data for Nevada, National Shares Frustrated
by Nevada Confidentiality Law
- Circus Circus Leads Nevada; Mirage Resorts Leads Las Vegas
- Harrah's Entertainment Is National Leader
- Many Marketers Poised for Taking Greater Share
- Trump Rules Atlantic City
- [Table] Marketers Shares of Atlantic City Casino Gaming
Revenues, 1994-1995 (dollars and percent); Marketer:
Trump, Bally Entertainment, ITT, Showboat, Harrahs,
Aztar, Resorts, Hollywood Casino Corp., Claridge
The Competitive Situation: Geographically Speaking
- The Ideal Jurisdiction Becoming a Rare Animal
- Las Vegas versus Atlantic City versus New Orleans
- Las Vegas Still Dominates Nevada Markets
- [Table] Share of Nevada Casino Gaming Revenue:
By Market, 1993-1995 (percent); Market: Las Vegas,
Reno/Sparks, Lake Tahoe, Laughlin, and Other
Intramural Positioning in Vegas: Kids versus Adults
The Fremont Street Experience—for Adults
Still More Noncasino Attractions for Vegas
Atlantic City Still Trading Income for Visitors
Tycoons Scramble for Atlantic City Beachheads
Midwest and South a Patchwork of Successes and Failures
National Saturation Still a Few Years Away, At Least
Competitive Focus: Harrah's Entertainment
- Harrah's Total 1995 Revenues Were $1.5 Billion
- Promus Becomes Harrah's Entertainment, Concentrates on Casinos
- Basic Harrah's Positioning Is Folksy and Warm
- Promus Made Harrah's a National Brand
- The Closing of Harrah's Jazz in New Orleans
- Harrah's Appears Skeptical of Family Entertainment
- Harrah's Overseas Experience Aids Negotiations with Tribes
Competitive Focus: The Trump Organization/Trump
Hotels & Casino Resorts, Inc.
- Revenues of at Least $1.2 Billion
- Trump's New Structure and IPO Better Focus Casino Efforts
- Trump Pushes Expansion in 1996
- Trump Sues to Halt New York State's Quick Draw Machines
Competitive Focus: Circus Circus Enterprises
- Company Revenues Top $1.3 Billion
- Why Circus Circus Is Such a Force
- Circus Circus Plans Megadevelopment for the Strip
- Circus Circus Outside Nevada
- Circus Circus's One Stumble
- Circus Circus in Atlantic City
- Circus Circus' Record-Breaking $1.5 Billion Line of Credit
Competitive Focus: Mirage Resorts, Inc.
- Revenues of $1.3 Billion
- Mirage Stresses Upscale Vegas, Avoids Brand Image
- Mirage Makes a Play for the Middle Class
- Mirage's Low Rollers' Venue in Laughlin
- Mirage's Big Entry into Atlantic City
- A Second Atlantic City Venture Now Planned
Competitive Focus: The Mashantucket Pequot
- Mashantucket Pequot Score $1 Billion—At One Venue
- Foxwoods: From Bingo Hall to Megaresort
- Foxwoods May Soon Have Real Competition
- Foxwoods Somewhat Protected by Compact with State
- Foxwoods Makes Education a Resort Feature
Competitive Focus: ITT Corporation
- ITT Split into Three Companies, One Specializing
in Hotels and Casinos
- ITT Enters Domestic Market with a Bang
- A Caesars Make-Over?
- ITT Negotiates to Buy Bally Entertainment Corp.
Competitive Focus: MGM Grand, Inc.
- MGM Grand Suffers Revenue Dip to $722 Million
- MGM Grand Lays Off Employees, Retools for Mid Rollers, Adults
- With New York-New York, Challenging Circus Circus
and Mirage Head On
Competitive Focus: Aztar Corporation
- Total Company Revenues About $573 Million
- Aztar Corp. Pressed to Expand
Competitive Focus: Jackpot Enterprises, Inc.
- Jackpot's Revenues Near $100 Million
- Jackpot Stresses Core Involvement in Noncasino Devices
Competitive Focus: Cruise Ships
- Suddenly, Lots of New Cruise Ships
- ConJelCo's Poker Cruises
Competitive Focus: At-Home Casino Gaming
- Positioning on Home Play
- Some Domestic Competition from Parimutuel Account Wagering
- Virtual Vegas Takes Moneyless Bets on Internet
- In the Vanguard: Warren Eugene
- Sports International: Sports Book, and Now Casino Games
- Global Gaming Services "Marries" Sports Bettors,
- Takes Commission
- [Chart] Web Site Addresses for Cyber-Casinos
Marketing Trends
- Expansion Through Wholly Owned Venues, Joint
- Ventures, Management Contracts
- Expansion Through Acquisition
- More Branding
- Increasingly Sophisticated Marketing Techniques
- Positioning the Watchword of the 1990s
- Positioning on Family Entertainment
- Marketers in Surprising Partnerships
- On-Site Tie-Ins Now Common
- An Even Greater Emphasis on Slots Now
- Yet Some Marketers Cash in on High-Stakes Baccarat
Consumer Advertising Expenditures
- Mostly Regional Campaigns, with Newspapers and
- Spot Television Stressed
- Close to Two Dozen Million-Dollar Spenders
- Harrah's Is Largest Casino Advertiser
- ITT Maintains Caesars World Spending Levels at About $5 Million
- A Dozen or More Marketers Spend $1 Million to $4 Million
- Much Hidden Expenditure
Consumer Advertising Positioning
- Mass Media Ads Treat Casinos as Just One Aspect of Venues
- Fun and Excitement
- Family Entertainment Not Stressed
- Entertainers
- The Elegant Social Life of Gamblers
- Natural Settings
- Relaxation
- Local and Regional Print Ads Emphasize Casino
- Action, Family Entertainment
Consumer Promotions
- Comps and Coupons
- Inexpensive Meals and Buffets
- Clubs
- Quadruple Jackpots
- Subsidized Bus Transport
- Travel Packages a Form of Promotion
- A Free Deck of Cards, a Sun-Visor, Etc.
- Free Phone Calls for Winners
- Vegas Chip Vouchers Accepted in Atlantic City
- Vehicles as Progressive Slots Prizes
- Other Attractions a Form of Promotion
- At The Casino Level
At the Casino Level
- Nevada Casino Win Percentages
- [Table] Average Nevada Win and Win Percentages on
Casino Games: By Game Type, 1995 (dollars and
percent); Game: Wheel of Fortune, Red Dog, Keno,
Caribbean Stud, Let It Ride, Pai Gow, Roulette, Pai Gow
Poker, Baccarat, Craps, Blackjack, Mini-Baccarat, Bingo,
Race Book, Sports Parlay Cards, Football, Basketball,
Card Games/Rooms, Slots
- Win Percentages Vary Greatly by Jurisdiction
- Slots Gaining in Revenue Mix
- Card Readers
- Slots with Embedded Bill Acceptors
- Cars, Trucks, Motorcycles on the Casino Floor
- Slots Making New Sounds
- Card Decks: Plastic versus Paper
- Commemorative Chips Provide a Small Revenue Line
- Food/Beverage and Tie-In Brands Chosen Carefully
- Creative Ways to Keep Players at Tables
- Grand Casinos Targets Cajuns with Bourre Game
At the Casino Level: Native American Reservations
- Negotiating Management Contracts with Tribes
At the Casino Level: Sportsbook
- Television a Key to Sports Book
- Super Bowl Parties
At the Casino Level: Riverboats
- Riverboats Getting Bigger and Costlier
- Variations Upon the Classic Design
- Expansion Via Barges
- Riverboat Venues Have Same Attractions as Land Casinos
- More Riverboats Permanently Moored
At the Casino Level: Noncasino Devices
- In Nevada, Leases Go to Highest Bidder
- Legislators Slow Action at Louisiana Truck Stops
- Organized Crime Role in Louisiana Noncasino Action
At the Casino Level: Cruise Ships
- Cruise Ship Casinos Tend to Be Smaller
- Small, but Staying Modern
- Tables Emphasized
At the Casino Level: Shows and Attractions
- Less Nudity, More Megashows
- Magic a Hot Show Trend
- Christmas Shows
- Ethnic Holidays Celebrated by Atlantic City Marketers
- The Casino Gaming Consumer
The Casino Gaming Consumer: In General
- Almost 33 Million Visit Casinos
- Players Lose an Average of $604 Annually
- Las Vegas, Atlantic City Still Top Destinations
- Much Cross-Patronage
- Few Venture to Caribbean or European Casinos
- [Table] Casino Gaming Jurisdictions or Venue Types
Visited, 1994 (adults-number and percent); Jurisdiction/
Venue: Las Vegas, Atlantic City, Native American,
Reno/Lake Tahoe, Laughlin, Riverboats, Cruise Ships,
Caribbean Islands, Europe
- Most Visit Casinos Once or Twice Annually
- Players' Gender Mix Has Shifted to Female
- The Principal Shopper Factor
- Middle-Aged Persons Show Strongest Incidence of Visits
- Key Boomers Somewhat Resistant, but More Numerous
- Various Factors Suggest Relative Affluence
- Data Suggests a Looser Definition of "Family"
- [Table] Demographic Characteristics Favoring Casino
Visitation; Factor: 00 Age, Education, Employment,
Occupation, Family Status, Region, Locality, Race,
Household Income, Household Size, Children in Household
The Las Vegas Casino Visitor
- Over 8.2 Million Visitors to Las Vegas
- Las Vegas Clientele Skews Male
- Those Ages 45 to 54 Show Peak Incidence
- Las Vegas Patrons Affluent
- Las Vegas "Families" Mirror the General Profile
- Las Vegas Visits Average 4.5 Days
- First-Time Vegas Visits Are Up
- [Chart] Demographic Characteristics Favoring Las Vegas
Casino Visitation; Factor: Age, Education, Employment,
Occupation, Family Status, Region, Locality, Race,
Household Income, Household Size, Children in Household
- Over Half of Las Vegas Visitors Arrive in Pairs—Only 11%
- Escorting Minors
- [Table] Las Vegas Visitation: By Number of Adults in
Party, Years Ended June 30th, 1994-1995 (Percent)
Parties with Minors Most Often Include Just One
- [Table] Las Vegas Visitation: Visitors with Minors in
Immediate Party, by Number of Minors, Year Ended
June 30, 1995 (Percent)
- Parties with One Minor: Minors' Ages Distributed Fairly
Evenly, Through Age 17
- Parties with Two or More Minors: Only Minors Ages 5
to 12 Are Significant
- [Table] Las Vegas Visitation: Visitors with Minors in
Immediate Party, by Age of Minors, Year Ended
June 30th, 1995 (percent)
- Usually a Third of Visitors See Downtown
- Nine of Ten Visitors Gamble
- Average Gambling Hours Indicate a Greater Share
of Casual Players
- [Table] Las Vegas Visitation: Average Gambling Hours
Per Day, Per Player, Years Ended June 30, 1994-1995 (Percent)
- Average Gambling Budget Surpasses $500
- Gambling Budgets Typically Less than $300
- [Table] Las Vegas Visitation: Average Gambling Budget,
Per Player, Years Ended June 30, 1994-1995 (Percent)
They Most Often Play Slots
- [Table] Las Vegas Visitation: Casino Games Played
Most Often, per Player, Years Ended June 30, 1994-1995 (Percent)
- Three-Coin Bets Are Most Popular for Slots/Video Poker
- [Table] Las Vegas Visitation: Average Number of Coins/
Tokens Inserted per Each Machine Play, per Player,
Years Ended June 30, 1994-1995 (Percent)
- Quarter Machines the Favorites for Slots/Video Poker
- [Table] Las Vegas Visitation: Slot or Video Poker Machine
Denominations Played Most Often, per Player, Years
Ended June 30, 1994-1995 (Percent)
- Average Table Bets of $4-$9 Are Favored
- [Table] Las Vegas Visitation: Average Table Game Bets,
per Player, Years Ended June 30, 1994-1995 (Percent)
- $5 Table Minimum Is Most Frequent Choice
- [Table] Las Vegas Visitation: Table Minimums Played
Most Often, Per Player, Years Ended June 30, 1995-1996 (Percent)
- Average Keno/Bingo Bets in $2-$9 Range
- [Table] Las Vegas Visitation: Average Keno or Bingo
Bets, per Player, Years Ended June 30, 1994-1995 (Percent)
Tournament Participation
- Food/Drink, and Show Expenditures
- [Table] Las Vegas Visitation: Various Data for Adult
Visitors, Years Ended June 30, 1994 and 1995; Factor:
Average Gambling Budget, Average Number Coins or
Tokens Inserted in Slot/Video Poker Machines, Average
Table Bet, Average Keno/Bingo Bet, Days Stayed, Nights
Stayed, First-Time Visits, Visited Strip Only, Visited
Downtown, Participated in Tournaments, Food and
Drink, Daily Expenditure, Shows, Per-Trip Expenditure
The Atlantic City Casino Visitor
- Nearly 8 Million Visitors
- An Even Sharper Skew to Female Visitors
- Similarities Shared with the General Consumer Profile
- Families Less Characteristic of Atlantic City Audience
- African-Americans Drawn to Atlantic City
- 30 Million Day Trips Made to Atlantic City
- Most Atlantic City Visitors Patronize Casinos
- [Chart] Demographic Characteristics Favoring Atlantic
- City Casino Visitation; Factor: Age, Education, Employ-
ment, Occupation, Family Status, Region, Locality, Race,
Household Income, Household Size, Children in Household
- New York Is Dominant Feeder Market
- Auto and Bus Transport Most Popular
- [Table] Atlantic City Visitation: By Means of Transport
and by Length of Stay ,1993 (Percent Visitors)
- Tours/Packages Account for Half of Atlantic City Trips
- [Table] Atlantic City Visitation: By Tours/Packages, 1993
(Percent Visitors)
- Composition of Atlantic City Travel Parties
- [Table] Atlantic City Visitation: With Whom Traveling,
and by Length of Stay, 1993 (Percent Visitors)
The Reno/Lake Tahoe Casino Visitor
- About 4.4 Million Patrons
- Those Ages 25 to 34 Most Likely to Visit
- For Reno/Lake Tahoe, Gender Is Split
- Again, Factors of Affluence
- More Distinct Family Status for Reno/Lake Tahoe Visitors
- [Chart] Demographic Characteristics Favoring Reno/
Lake Tahoe Casino Visitation; Factor: Age, Education,
Employment, Occupation, Family Status, Region, Locality,
Race, Household Income, Household Size, Children in
Household
Appendix I: Examples Of Casino Gaming
Advertising And Promotion
- Advertising Examples
- Promotional Advertising Examples
Appendix II: Addresses Of Selected Marketers
AbstractThe big story in casino gaming is growth. According to this report from Packaged Facts, there are a number of factors responsible for painting this rosy picture of the industry, including the Indian Gaming Regulatory Act and the gradual legalization of gambling from state to state. Offers in-depth analyses of the competitive strategies, advertising expenditures, and revenue breakouts by game and a description of the American gambler. Leading casinos are profiled.
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