Brief Excerpt from Industry Overview Chapter:
Companies in this industry operate gambling facilities or offer gaming activities. Major companies include US-based casino operators Las Vegas Sands, MGM Resorts, and Wynn Resorts, as well as Galaxy Entertainment (Hong Kong), SJM Holdings (Hong Kong), Tabcorp (Australia), International Gaming Technology (UK), and William Hill (UK).
Demand for gambling is driven by consumer income growth and state spending. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make significant investments in facilities and efficient computer operations; they may also enjoy cross-marketing opportunities. Small gambling facilities can thrive by catering to local residents, who may not be able to afford travel to such gambling centers as Las Vegas or Atlantic City.
PRODUCTS, OPERATIONS & TECHNOLOGY
Gaming operators mainly provide a place or a means to play games of chance, where the odds of winning favor the "house." Popular casino games are slot machines (slots); video poker; and table games such as roulette, baccarat, blackjack, and craps (dice). In the US, the house take on slot machines varies, depending upon the denomination of the slot machine, but generally runs between 5% and 10%. The take on most table games may be higher, around 20% to 25%.
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