Global Casino Industry Case Study
The government legalized gambling to increase revenue and taxes from these casinos. When combining the revenues from Native American casinos and other casinos in other parts, U. S expected to exceed the amount that was generated by Lasa Vegas and Atlantic City. Casinos in Las Vegas and Atlantic were able to provide two dozen large casinos on its strip where they spend lavishly to try and differentiate themselves from other but they were faced with a problem where several casinos were developed along the strip in the former Portuguese colony of Macau. Due to this Macau had a chance to grow from a tiny territory to a booming center of gambling thus generating more revenue than Las Vegas strips. For instance, in 2001, Hurrah's bought casino rival Caesars and ended up becoming the largest operator of the casino in the nation owning some casinos in Las Vegas and Atlantic City.
This happened after an announcement by MGM Mirage had stated that it was buying Mandalay Resort Group which mage the Mirage owns more casinos in Las Vegas strip. The challenge. By building extravagant new property such as MGM Mirage's City Center which cost $8. 5 billion in Las Vegas and Atlantic City they drew most gamblers over the years. It had an alternative of offering beach resort and boardwalk which it did offer in line with large casinos hotels. Despite trying the city was unable to develop itself as a beach resort. Atlantic City tried to make itself more competitive than Las Vegas by opening much-ballyhooed Revel but it failed because it was unable to replicate Borgata Hotel's success which was a major resort opened in there in 2003.
Casinos that did not offer other forms of entertainment rather than gaming were closed, for instance, the Ravel this is because those casinos that opened and incorporated other forms of entertainments rather than gaming alone drew gamblers away from Atlantic City. In some years Macau was also trying to minimize its dependence on gaming alone although the revenue from gambling in 2014 was almost four-fifths of the Territory economy. Due to this, a solution was proposed which was to shift the casinos from older, hard-core, corrupt gamblers to younger gamblers who were passionate enough and who considered gambling as part of their Macau experience. By doing this, the casinos were expected to raise their revenues back to normal. Newer casinos were built in Macau where they incorporated more than non-gambling activities to keep their new younger customers.
They offered more in their casinos such as shops, restaurants, spas, cinemas and not leaving concert arenas to advantage and impress their customers. These activities provided a lot of revenue to the casinos, for instance, the shops that were inside Sands casino in Macau, generated as much as $2billion of revenues. Another strategy that can be used by casinos is by shifting from old customers who mainly use incomes from dirty money and through ways of corruption and also who came to the casinos for high stakes gambling but instead they should consider young customers who not only enjoy gambling but also are interested in eating and drinking, shopping and also taking in shows. By doing this they will be able to earn from all sides thus increasing their revenue.
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