1. C
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The Gaming Entertainment Industry
11
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

2. Gaming Entertainment Defined
• Gaming Entertainment…
– Commercial and Native American casinos
– Card rooms
– Charitable games
– Lottery operated games
– Wagering on greyhound and horse races
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

3. Definitions
• Handle…
– What the consumer bets (wagers)
– $500 billion dollars
• Win…
– Gross gambling revenue
– $48 billion dollars
• Casinos count for half of the U.S. gaming
dollars
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

4. Gaming Versus Gambling
• Gaming entertainment…
–
–
–
–
–
–
Casino floor (gambling)
High-quality food and beverage
Hotel rooms
Live performances
Theme park, theme rides, and museums
Land, based, and riverboats
• Gambling…
– Playing a game of risk for chance of making money
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

5. Who Is the Guest?
• Guests…
– Increasing acceptance by all consumers
– 32% of U.S. households gamble in casinos
– Younger players
– White-collar jobs
– Wants total entertainment experience
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

6. History of Gaming
• History…
– Gambling legalized in 1931 in Las Vegas
– From 1940-1978 Las Vegas was a monopoly for
gaming
• No hotel rooms
• No entertainment
– Gaming Control Board and Nevada Gaming
Commission
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

7. The Move to New Jersey
• New Jersey…
– Gambling legalized in 1976
– Looked at gaming to invest capital, create jobs,
pay taxes, and attract tourists
– Casino Control Act funded Casino Control
Commission
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

8. Native American Gaming
• Native American…
– In 1987 the Supreme Court determined if state
has gaming, so may Native Americans
– 11% of all winnings are from Native American
casinos
– Indian Gaming Regulatory Act (IGRA)
• Provides framework for games
• Defines different “classes” of gaming
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

9. National Gambling Impact Study
Commission
• Commission…
– Signed into law in 1996 to study social and
economic impacts of gambling in the United
States
– Two-year study
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

10. Focus of Commission
• Commission (cont.)…
– Review existing policies
– Relationship
• Gambling and crime
– Assess problem gambling
– Review impact on society
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

11. Focus of Commission
• Commission (cont.)…
– Determine how gambling affects revenue to
government
– Study interstate and international effects of
gambling by electronic means
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

12. Size and Scope
• Growth…
– Publicly traded companies is 45
– Public acceptance
– People like to wager
– More demand than supply
• Aided economic growth in states…
– Taxes
– Capital investment
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

13. Controversy
• Controversy…
– Dislike of gaming
• Moral beliefs
– Social costs
• Organized crime
• Street crime
– Gambling addictions
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

14. Key Players
Mirage Resorts
• Mirage Resorts…
– Treasure Island
– Golden Nugget
– Monte Carlo
– Bellagio
– Soon to be in Atlantic City
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

15. Key Players
Harrah’s Entertainment
• Harrah’s Entertainment…
– Reno, Lake Tahoe, Las Vegas, and Laughlin NV
– Atlantic City, NJ
– Riverboat and dockside casinos
– Native American Casinos
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

16. Key Players
Hilton Hotels Corporation
• Hilton Hotels Corporation…
– Purchased Bally Entertainment
– Las Vegas, Reno, and Laughlin
– Atlantic City
– New Orleans riverboat
– Canadian casino
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

17. Star Trek at Hilton Las Vegas
• Star Trek…
– $70 million venture
– Targets
• Baby boomers
• Generation X
– Simulation ride
– Television screens
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

18. Key Players
• Players…
– Caesars World hotel/casinos
– Las Vegas, Lake Tahoe
– Atlantic City
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

19. Key Players
Circus Circus
• Circus Circus Hotel…
– Owns hotels and casinos in three states
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

20. Luxor Owned by Circus Circus
• Luxor…
– Based on Egyptian pyramid
– World’s largest atrium
– 4500 hotel rooms
– Thrill seeking rides
– Museum
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

21. Excalibur Owned by
Circus Circus
• Excalibur…
– Based on medieval period of time
– 4000 hotel rooms
– Evening jousting matches
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

22. Key Players
MGM Grand
• MGM Grand…
– 113 acres
– 5000 hotel rooms
– “City of Entertainment”
– Six-story lion entry
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

23. New Players
• New Players…
– Boyd Gaming
• 10 gaming and hotel facilities in 4 states
– Grand Casinos
• Develops, constructs, and manages land-based and
dockside casinos
– New York New York Casino
– Sands Venetian Resort
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

24. Careers in Gaming Entertainment
• Careers…
– Hotel operations
– Food and beverage operations
– Casino operations
– Retail operations
– Entertainment operations
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

25. Trends in Gaming Entertainment
• Trends…
– Merging frenzy
– Look at entertainment for profit & growth
– Hotel room inventory in gaming properties is
expanding
– Continued scrutiny by government
– Exceptional service quality is key to success
– Great management opportunities for students
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

26. Casino games
• Is a wildly popular lottery style game that is
played around the world for cash prizes,
rewards and to raise money for charitable
causes.
• Its popular with all people of all ages and
background because it’s easy to play.
• Is a completely random game so there's no
such thing as winning strategies.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

27. Blackjack 21
• Is by far the most popular casino table
game.
• The objective of blackjack is for a player to
come close to 21 without going over.
• Ace= 1 or 11 (whichever the player chooses
in a given situation.
• Kings, Queens and Jacks (face cards)= 10
• Other card is represented by its face value.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

28. Two basic decisions in blackjack
1.Hit – The act of a hit in blackjack can be
explained as the request for an additional
card. Blackjack players may hit as many
times as they wish either until they go
'bust' or they decide to stand.
2.Staying – To stand in the game of blackjack
is to stay with the cards that have been
dealt. A player stands when satisfied with
the cards in hand and when preferring not
to request further cards.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

29. • Split - is possible when a hand contains a
pair. In such a situation, the pair may be
separated into two individual hands.
– Players may only split with a pair in a two
card hand. In the case of a split a new
bet is then placed on the second hand.
The gamer then plays each hand
separately until going bust or reaching
the decision to stand.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

30. Surrender - option is available at the majority of
online blackjack gaming locations. This
alternative enables a player to surrender the
game, thereby forfeiting half the amount of
the wager and receiving back the other half
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

31. • Double - This may only take place after a
player has viewed the two cards dealt.
It should be taken into consideration that
after doubling down a player may hit only
once and therefore receive only one more
card. Many blackjack experts would
therefore recommend that a good time to
take advantage of the blackjack double
down option is when in possession of a
card total of 9, 10 or 11. In such a
situation, there is no possibility of going
bust and the receipt of a high card upon
the hit would create a high hand.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

32. Rules
1. The dealer must hit until they reach 17 or
higher.
2. Anyone whose cards are over 21 has
busted and lose automatically
3. If the players cards end up being the same
value as the dealer, it is called “push”, bet
are given back
4. If the players card value beats the
dealer’s, then they are the winner.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

33. Baccarat
• Cards are dealt in two hands, named Player
and Banker.
• The objective of the game is to correctly pick
which hand will have the higher score, with
the highest score being 9 and the lowest being
0.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

34. three spaces are where each player can place
chips
• Players - The first space, which has one of the
letters from the word "Players", is where chips
on the Player Hand are set.
• Bankers - The second space back - with one of
the letters from the word "Bankers" - is where
chips on the Bank Hand are set.
• Tie Bet - The third box closest to the center of
the table, which is marked by the player's seat
number, is where chips for a Tie bet are set.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

35. 3 dealers
• Dealer's at Position 3 and Position 2 stand
near the chips on one side of the table.
These dealers take care of betting on their
side of the table.
• Position 1 is the Baccarat caller's. He
stands in the center of the Baccarat table
on the opposite side from the two end
dealers and makes calls on the hands.
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker

36. RULES
•
•
•
•
The point value of the cards
All 10's and face cards have an importance
of "0“
Aces are constantly worth “1”
all other cards are worth their face value
When the sum of two or more cards is
greater than ten, the point total is
decreased by 10
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker