Where has the Business Gone?
The land and online casinos gambling industries have reported that the slow down
on the U.S. economy could have a significant effect on the industries 2008
revenues. The land gambling industry is already looking into ways to reduce the
costs as land gambling revenues wane with the receding U.S. economy. Some Las
Vegas casinos have previously commented that a U.S. recession will not have a
profound effect on the land gambling industry because individuals historically
continue to gamble throughout recessions. But now it turns out that several land
companies are reporting that slots parlous, online casinos gambling, and a
slower economy are collectively reducing the casinos’ revenues.
The land gambling venues have collectively considered a few options for reducing
expenditures and boosting the amount of money gambled at the land casinos.
Getting rid of comps and freebies for so many of the gamblers who choose land
casinos over online casinos could backfire if the high-rollers abandon the land
gambling venues all together once the comps decrease. But some of the land
gambling companies argue that it could save a lot of money for the casinos.
The reduction of compensation though would appear to counteract another plan at
the land casinos – a step-up in marketing and advertising efforts draw in the
high-rolling gamblers. Many land gambling companies have found an increasing
number of elderly and middle class gamblers coming out to the casinos – and
while there is certainly money to be made from any gambling at the casinos, the
real money comes from the up-market gamblers who prefer land to online casinos
gambling. That is a key strategy to get through the economic recession as
vacation gamblers choose to stay home and use leisure money to pay off debts –
appeal to those gamblers who really drop the cash at the casinos and resorts. |