1. #M-11-1
#BELENOVA
#LEONT’EV
OF
BARRIERS
C A S I N O
BARRIERS
OF
MARKETMARKET
THETHETHE ANALYSIS
FOR THE
ENTRY AND EXIT

2. THE TOP CASINOS IN LAS VEGASTHE TOP CASINOS IN LAS VEGAS
THE BELLAGIO
MANDALAY BAY RESORT & CASINO
THE MGM GRAND
CAESARS PALACE
THE LUXOR HOTEL & CASINO

3. INTRODUCTIONINTRODUCTION
T
R
M
T
RANSPARENT (?)
EGULATED
ONITORED
AXED

4. INTRODUCTIONINTRODUCTION
> NYSE / NASDAQ
> TAX: 6,75% - 55%
> ITS OWN BUSINESS CYCLE
> A VERSION OF IRRATIONAL EXUBERANCE

5. 88NON-STRATEGIC
!
!
BARRIERS
!
!
BARRIERS

6. > MARKET CAPACITY
CAPITAL REQUIREMENTS <
CRIMINALITY <
> ABSOLUTE COST ADVANTAGE
RELATIVE COST ADVANTAGE <
> ADMINISTRATIVE BARRIERS
[GOVERNMENT REGULATIONS]
MARKET INFRASTRUCTURE <
> QUALITY OF GOODS &
REPUTATION OF A FIRM

7. LICENSING PROCESSUPFRONT
CAPITAL COSTS
DESIGN
DEVELOPMENT
CONSTRUCTION
HIGH LEVEL OF
TAXATION
NON-STRATEGIC BARRIERSNON-STRATEGIC BARRIERS

8. CITYCENTER - $8,5 BILLION
CONSTRUCTION
CAPITAL REQUIREMENTSCAPITAL REQUIREMENTS
TECHNOLOGICAL INNOVATIONS
GAMING EQUIPMENT
WYNN ENCORE - $2,5 BILLION
RED ROCK- $1 BILLION
OR JUST LAND - $1,2 BILLION

9. ADMINISTRATIVE BARRIERSADMINISTRATIVE BARRIERS
> LICENSING PROCESS
> NEVADA GAMING COMMISSION
> STATE GAMING CONTROL BOARD
> AGA: AMERICAN GAMING ASSOCIATION
> NRS: NATIONAL REGULATORY SERVICES
> TYPES: RESTRICTED & NON-RESTRICTED
> LICENSING PROCESS
> NEVADA GAMING COMMISSION
> STATE GAMING CONTROL BOARD
> AGA: AMERICAN GAMING ASSOCIATION
> NRS: NATIONAL REGULATORY SERVICES
> TYPES: RESTRICTED & NON-RESTRICTED

10. 55
STRATEGIC
!
!
BARRIERS
!
!
BARRIERS

11. > LIMIT PRICING
EXCESS CAPACITY <
> PRODUCT DIFFERENTIATION
LONG-TERM CONTRACTS: <
SUPPLIERS & CUSTOMERS
> REPUTATION OF ‘TOUGH’
COMPETITOR

12. CULTURAL
LANDMARK
STRATEGIC BARRIERS
PRODUCT
DIFFERENTIATION
THE KILLING
(OFF)
$100,000
ENTERTAINMENT
EVENTS
$50,000
STRATEGIC BARRIERS

13. COMMENTS
WELCOME
AND
ARE
QUESTIONS