Saved from Saturation
BY ROGER GROS
When you say “ saturation ” to someone in the design and construction industry , they ’ re more likely to worry about leaking water pipes , or maybe vivid colors on the walls of a room . But when you say “ saturation ” to a gaming executive , they ’ ll go pale , start to stutter and wonder what happened to their customers .
Because in the gaming industry , saturation is when the product supply of gaming is exceeding the demand . We ’ re seeing that in several jurisdictions .
The poster child right now for saturation is Atlantic City . Since the beginning of 2014 — as of this writing late in the year , anyway — five casinos have closed , with a loss of more than 10,000 jobs , millions in tax revenue for the state , and a reduction in choices for visitors .
“
As designers , you have to deliver on the promise that your creation will produce a buzz and excitement that will transcend gaming and attract a wide range of visitors .
”
What happened ? Competition , for the most part . When casinos opened in Pennsylvania , one of Atlantic City ’ s principal markets , in 2004 , Boardwalk gaming executives weren ’ t terribly worried . After all , in the late 1990s , Delaware introduced gaming at the state ’ s racetracks , and it barely dented the Atlantic City market . And with a gaming tax in Pennsylvania exceeding 50 percent , how could they compete with what AC gives away ? What , me worry ?
Well , they should have worried , and began to worry when they realized Pennsylvania allowed its casinos to write off marketing expenses before reporting revenues , so they could almost match AC offers . So why would a casual player drive the hour or two to get to AC when they can get to a closer casino in less than half an hour ? They didn ’ t , and the slide of Atlantic City began .
To their credit , Atlantic City officials realized 10 years ago that there needs to be more non-gaming attractions , but as gaming revenue slumped , so did the funds available to develop those attractions .
And the casinos in Pennsylvania , the beneficiaries of Atlantic City losses , soared for a few years , but have now leveled off . And with talk of a second casino in Philadelphia ( in addition to two in the Philly suburbs ), there is a very real possibility that gaming revenues could start tumbling there .
And what about Foxwoods and Mohegan Sun ? Yes , the economic collapse in 2008 hit those Connecticut casinos hard , but their business has not rebounded and there isn ’ t much in the way of new competition over the last few years . So they ’ ve ramped up their non-gaming attractions to new levels .
So as designers , how can you help owners battle the saturation issue ?
The answer is , of course , to create properties that are “ must-see ” attractions for gamblers and non-gamblers alike . The owner must have a vision of how gaming can support such things as entertainment , meeting and convention space , retail , restaurants and other hospitality options . As designers , you have to deliver on the promise that your creation will produce a buzz and excitement that will transcend gaming and attract a wide range of visitors .
Casino Design magazine is packed with such suggestions : how to create something out of nothing ; why nightclubs can be a game-changer ; what tribal gaming operations can do to diversify revenue streams ; why boutique hotels can be a powerful product …
Each year , Casino Design is a labor of love for us and for all the participants . The passion behind their comments and the power behind their words is evident with just a quick read , but I ’ m sure you ’ ll want to drill down and discover the secrets that our experts are revealing .
This year ’ s Casino Design is saturated with information and great ideas . And that ’ s a saturation we can live with !
A GLOBAL GAMING BUSINESS PUBLICATION 2014
Roger Gros , Publisher | rgros @ ggbmagazine . com Frank Legato , Editor | flegato @ ggbmagazine . com
Robert Rossiello , Art Director | rross @ casinoconnection . com
David Coheen , North American Sales & Marketing Director dcoheen @ ggbmagazine . com
Floyd Sembler , Business Development Manager fsembler @ ggbmagazine . com
Becky Kingman-Gros , Director of Operations bkingros @ ggbmagazine . com
COLUMNISTS Rich Emery | Seth Makowsky | Karla Perez
CONTRIBUTING EDITORS Dave Bontempo | Julie Brinkerhoff-Jacobs Roberto Coppola | Rodric Hurdle-Bradford | Pamela Jones Marjorie Preston | Patrick Roberts | David Ross
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Mark Birtha , Senior Vice President & General Manager , Hard Rock International
• Julie Brinkerhoff-Jacobs , President Lifescapes International
• Nicholas Casiello Jr ., Shareholder Fox Rothschild
• Jeffrey Compton , Publisher , CDC E-Reports
• Geoff Freeman , President & CEO , American Gaming Association
• Dean Macomber , President , Macomber International , Inc .
• Stephen Martino , Director , Maryland Lottery and Gaming Control Agency
• Jim Rafferty , President , Rafferty & Associates
• Thomas Reilly , General Manager , ACSC Product Group Eastern Region Vice President , Bally Systems
• Steven M . Rittvo , President , The Innovation Group
• Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University
• Ernie Stevens , Jr . Chairman , National Indian Gaming Association
• Roy Student , President , Applied Management Strategies
• David D . Waddell , Partner , Regulatory Management Counselors PC
Casino Connection International LLC . 921 American Pacific Dr , Suite 304 , Henderson , NV 89014
702-248-1565 • 702-248-1567 ( fax ) www . ggbmagazine . com
The views and opinions expressed by the writers and columnists of CASINO DESIGN are not necessarily the views of the publisher or editor .
Copyright 2014 Global Gaming Business LLC ., Las Vegas , NV 89118 CASINO DESIGN is published annually by Casino Connection International , LLC . Printed in Nevada , USA .
Postmaster : Send Change of Address forms to : Global Gaming Business , 921 American Pacific Dr , Suite 304 , Henderson , NV 89014 www . casinodesignmagazine . com
4 CASINO DESIGN 2014