These seven trending gaming industry stories will impact your casino revenue strategy.
1. Five Trends Shaping Casino Revenue Strategies
Understanding casino guests and tailoring your strategy to their individual behaviors is critical to success. But what does that mean exactly? Blogger Kacey Bradley believes hotel-casinos need to reshape their revenue strategies based on current trends so they encompass all parts of an operation, from marketing and loyalty programs to online gaming and more.
“With these emerging trends, hotel-casinos must form a specialized approach to build and maintain customer relationships,” she says. “Implementing a promising plan of action can put your hotel-casino in a profitable position.”
2. Caesars and Eldorado in Reported Merger Talks
According to an exclusive report by Reuters, unnamed sources have indicated that Caesars Entertainment and Eldorado Resorts are currently holding talks on a potential merger. Those sources state that Caesars has already turned over certain financial data to Eldorado in order to allow the latter to conduct due diligence ahead of any deal.
If the two companies do decide to partner up, it would result in the creation of a $9-billion gambling empire that could potentially rule the U.S. casino market.
3. Atlantic City Casino Revenue Hits February Hot Streak
Casino gaming revenue in Atlantic City was up for the ninth consecutive month in February, according to state gaming regulators.
Revenue in the Nation's Playground has increased by double digits every month since the opening of Hard Rock Hotel & Casino Atlantic City and Ocean Resort Casino in June. The continued growth of online casino gaming and the addition of a new revenue source from sports betting have also contributed to the industry’s winning streak.
But will the streak continue through March? One source says it would be “madness” to think it wouldn’t. Time will tell.
4. Oscars Betting Become a Thing in AC
The New Jersey Division of Gaming Enforcement reported that oddsmakers took $747,696 in bets on the Academy Awards. The Atlantic City sportsbooks and two facilities located at the Meadowlands and Monmouth Park racetracks maintained a more than 24% hold for a net win of $182,517.
5. Macau Casino Licenses Granted Extension Until 2022
MGM China Holdings and SJM Holdings have been granted two-year extensions to their Macau casino licenses, bringing the two operators in line with the territory’s four other main licensees.
All six gaming concessions will now expire together in the summer of 2022.
When that happens, casinos may not be able to simply request a new one. According to the wording in current laws, new concessions could only be issued following a complete bidding process as if it were the first time casinos were ever launched in the city.
Casino operators have been pushing for clarification on new process, but gaming officials have remained silent.
6. Sullivan County Casino Owner Loses $138.7 Million in 2018
Empire Resorts, the parent company of Resorts World Catskills casino, recorded a 2018 loss of $138.7 million on revenue of $194.8 million and operating expenses of $283.9 million, according to an earnings report filed with the Securities and Exchange Commission.
The company is current on debt payments. But it warned it may generate insufficient cash flow, which could lead lenders to decline refinancing, causing default, potential foreclosure and loss of assets.
7. New Casino Proposed Along Mississippi Shoreline
On March 1, Cure Land Co. filed an application with the Mississippi Gaming Commission for casino site approval.
If approved, a new casino would be built on a 98.5-acre property just east of Silver Slipper Casino. The developers anticipate the resort will have the minimum 40,000 square feet of casino space with 1,100 slot machines and 22 table games, along with a 300-room hotel.
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