CHAPTER 4

MICE, RECREATION AND

GAMING
ENTERTAINMENT
 6.1 Meetings,
INCENTIVES,
conventions,
&
EXPOSITIONS/EVENTS
Overview
• Those days, the business of meetings, conventions &
expositions was considered as secondary business of the
hospitality industry
• But, today, meetings, conventions & expositions are
serious business.
• Conventions, meetings & expositions
are a major & growing enterprise not
just the people who work in the
business but also for the communities
that reap the economic benefits of
such meetings
 How meetings, conventions & expositions
differ from one another
Conventions Meeting Exposition

A group of delegates or Gathering of people for a A large exhibition or special

common purpose. event in which the
members who come
together to accomplish Meetings come in all sizes presentation is the main
specific goal. and varieties attraction as well as a
Goal may be civil, social, source of revenue for
political, or economic Example: training session exhibitors.
for employees, business
Held for the purpose of Example: Trade show,
meeting, events at social,
exchanging ideas, views, & product launch, Auto, Home
seminars and religious Improvement
information of mutual
interest with the group. gathering.
Size range: large, open to
the public
Size range: 200- 100000
HOW meetings, conventions and events DIFFER
from OTHER hospitality areas

• Meetings, conventions, & expositions utilize

convention hotels & facilities
TWO MAJOR • They usually reserve space for months or
DISTINCTIONS years in advance.
• Negotiate package deals that may include
Size of the rooms, meals, events, local tour, and
entertainment.
group • The number of participants , length of stay
and number of meetings schedule are all
determinants of “size”.

Function • Have defined purpose and agendas.

of the • For example planning policy, exchanging ideas, or
presenting services.
group
 Event Management
• Event management is the application of the techniques of the
project management to the creation & development of
festivals & events.
• Involves studying the customer, identifying the target
audience, devising the event concept, planning the logistics &
coordinating the technical aspects before long before the
event.
• Event management companies offer services such as :
- corporate events (product launches, press
conferences)
- marketing programs (road shows & grand opening
events)
- Concerts , award ceremonies, film premiers, fashion
shows, weddings and so on.
 Specific Factors Affecting Event Planning
Variables affecting event planning include:
- weather
- permits
- governmental oversight,
- budgetary constraints
- security
- risk management / insurance
- food preparation & delivery
- decorations, lighting, theme, concept development,
staffing and so on
 Careers in the Event Planning Segment
• An event planner is someone responsible for organizing
business & social events (awards shows, parades,
charity fundraisers, conferences, grand openings,
product launches, fashion etc)
• The event manager is the person who executes the
event. ( may also be involved in brand building,
marketing & communication strategy, audio-visual
production, logistics etc)
• Event planners need to develop business relationships
(networking)
 A Major & Growing Source of Hospitality Revenue

Conventions, Meetings, and Events are a major

and growing enterprise, not just for the people
who work in the business, but also for the
people that reap the economic benefits of such
meetings.
 PRIMARY Reasons of growth
Information
A number of factors are responsible, but explosive growth in information &
easy availability of airline travel head the list, supplemented by expansion of
facilities & robust economic activity worldwide.
This growth is the major reason people hold meetings, convention s &
expositions. (To exchange the ideas, sell products, gain knowledge, to keep
up with latest trends etc)

Airlines
Accessibility to Air Travel. With the introduction of jumbo jets and the low cost
carriers into the market , large number of people could travel, quickly and
efficiently. (no destination is “off- limits for the meeting industry)
Deregulation of the airlines stimulated price wars between airlines & airfares
plummeted, making travel affordable.
Airlines began catering specifically to the meeting business by offering
package deal & negotiated fares.

(Other Influences (Lodging Expansion, Convention Centres,Technology

Increase number of meetings- require large space.
Hoteliers need to adapt services that meet the needs of varied clientele such
as meeting room, projector, wi- fi and so on.
Convention Center
Convention centers have driven lodging expansion Space, accessibility and
storage capabilities have made convention centers a one-stop arena for
meetings, conventions & expositions.

Convention & visitors bureaus

Purpose of Convention & Visitors Bureaus
To encourage groups to hold meetings, conventions & expositions in the city or
area the CVB represents
To assist groups with meeting preparations & services during the course of the
convention, exposition, or meeting.
To encourage tourists to visit historical, cultural, and recreational opportunities
that the city has to offer

Conference Center
Conference centers has been greatly influenced by growth of the
meetings business.
Today, conference centers are resort-oriented with recreational &
physical exercise facilities available, to cater to broader audiences
 Increased Use of Technology
Technological advancements have made meetings, conventions &
exposition more interesting to attend & easier to arrange.
Through Videoconferencing, Teleconferencing Computers

Meeting Planners
Plans events and also assist with execution by organizing details
that link the client with the facility to ensure meeting, convention or
exposition go smoothly

Ground Suppliers
Are vendors who handle details of tours, transportation,
sightseeing, banquets and hotel registration.
Now, ground suppliers are also program planners (planning activities
for spouses , motivational speakers
 Opportunities in the meeting industry

Conference &
Corporate Exhibition Hotels and Resorts,
Travel Centers including their
Agencies sales divisions

Convention, Event
MICE Marketplace offer
& Exhibition Destination
various job opportunities
Organizers Management
Companies

Conventions Visitors
Bureaus & Trade
Associations Incentive Houses

Airlines & Aircraft

Operations
Businesses
 Planning, organization and execution

- Make Floor
Work with Exhibitors Plans
& Lecturers - Arrange for
Security
- Arrange Troubleshoot unforeseen
Plan Programs for problems / Operational
Participants Transportaion
Issues / Assist with
Resolution

Organize Guest
Registration /
Name Tags & Review Vendor
Handouts Contracts

Secure Final
Arrange for Food, payments for
Beverages, Services

Select site &

Reserve meeting ROLE OF
space, hotel rooms, MEETING
audiovisual and Evaluate the MCE
PLANNER after it is over
other equipments.
 Special consideration

Meeting the Needs of the Physically Challenged

* Elevators with Braille, Braille Guestrooms, Ramps for wheelchairs etc
* Arranging needs for Interpreters, Translators, and Readers

• .
Hospitality and Sports Management
* Public Relations, Ticket Sales & Marketing, Travel planning, Logistics,
Sports Governance & Information
* Most significant component of Sport Mgt. is facility management
* Responsibility include: scheduling, supervision, payroll, reporting,
budget development etc
6.2 Recreation, Theme Park and Overview
Clubs
• Recreation and leisure have long
been a part of society and are
becoming increasingly important.
• Many people, especially middle-
aged and older individual have
sufficient discretionary income to
afford club memberships, and
cruises.
• This chapter view destinations
that provide opportunities for
social & cultural, recreational,
adventure and health & wellness
pursuits.
 Managing Leisure Segments of the
Hospitality Industry
• A widely held view is that the increased pace of modern living has meant
more work and less play.

• John Robinson & Geoffrey Godbey study on “Americans” Use of Time”,

describe “Americans’ response was ‘intensifying the psychological
experience as the “deepening of time”

 To “deepen” time means people speed up their activities, attempt multiple

activities at once, or manage their time more precisely.

 When people expect more activity in less time, they are more likely to
patronize recreational facilities that pack lots of experiences within the
short time frame – Example: An amusement park gives patrons a beeper
every time they enter)

• Time deepening will affect how the leisure-oriented segment of the

hospitality industry designs, markets, and manages its offerings.
 • Providing recreation and leisure
Purpose of services
Leisure • Today, Leisure activities are
Segments of the blended among everyday
Industry activities
• Integrating business activities
within leisure activities offers
another way of carrying out
more time to experience
different recreational activities
& destinations.
• Leisure is defined as “freedom
resulting from the cessation of
activities, especially time free
from work or duties”
 Advent of Hospitality Professionals in the
Leisure Segment
• “Recreation management” is the professional handling of
physical facilities where recreation and leisure activities occur.
• In 1920s and 1930s, recreation & social programs were
offered to the public as a form of community service.
• In 1930s, a handful of colleges and universities offered parks
and recreation management programs as areas of study.
• World War II took recreation management into the
mainstream as the morale and well-being of American troops
became a priority.
• Today recreation management, particularly that of
commercial facilities, is among the fastest-growing segments
in the industry.
 Novel Lodging Facilities

• Some travelers want more than recreation

and relaxation when vacationing.
• They may choose to stay at the bed-and-
breakfast house in a less commercialized
atmosphere, historical castles, African
game preserve among wild animals.
• In any case, guests can find almost any
type of lodging to fit their needs
Bed-and-Breakfast
• A segment of the hospitality industry that has shown
a dramatic increase in popularity in the last few years
• Difficult to define, a bed-and-breakfast is generally a
private home with a family in residence that offers
one to five guest rooms, although some are much
larger.
• Originating from an old European tradition of people
opening their homes to travelers many of today’s B
& Bs (as they are frequently called) provide as much
of that historic charm and personal touch as
possible.
Bed-and-Breakfasts are flourishing for several
reasons
• Business travelers are growing weary of the
complexity of check-ins and check-outs at
some commercial hotels.
• Many leisure- time travelers are looking for
lodging on a scale somewhere between that
of a large, formal hotel and the private home
of a friend or family members. (friendly-home
atmosphere)
Continue….
• B & Bs often are organized as sole proprietorships
and are not required to make public financial
disclosures.
• The growth in B & Bs is due largely to the
personalized nature of the service they offer.
Chateau
• A château is a castle, manor house, or palace.
• Located all over the French countryside, some
château are privately owned and accept
paying guests.
• Gives guests the opportunity to stay in
majestic centuries-old buildings.
• Featuring canopied beds, a country garden,
and hosts who make their guests’ privacy a
priority, this château ensures rest and
relaxation.
 Clubs

• A club is an association of persons with some

common objective, usually jointly supported
and meeting periodically.
• People join clubs to enjoy the company of
friends in a comfortable surrounding.
• Most clubs today are patterned after British
ones dating from the 17th &18th centuries.
• City clubs are similarly related to English social
clubs, which arose when members met over
drinks and dinner in local taverns.
Private Clubs and Clubs Membership
Membership in some clubs can only be obtained upon
invitation and recommendation of current members.
Types of Clubs
 All clubs, regardless of size, type, or location, share one
characteristic: the guest.

 Many Clubs charge both an initiation fee and an annual

membership fee.
 Country
Clubs

• The primary recreation activity of the country club is

golf, swimming and tennis.
• Most country clubs operate at least one dining room,
along with extensive catering and banquet facilities.
• Sell both full and partial memberships. (absent
member)
 City Club

• City clubs promote trade, business, and

friendship among colleagues.
• As the name implies, city clubs are found in
cities or business districts.
• Most city clubs do not restrict membership
(attract business leaders and professionals
from a variety of fields).
 Military
Clubs

• Provides clubs for its officers &

noncommissioned officers.
• Located near major military installations,
• Clubs have dining and meeting room facilities,
recreational facilities, and guest rooms.
 Yacht Clubs

• promote and regulate boating and

yachting activities.
• Typically, the yacht club owns and
operates a marina for its members.
• Club may also operate a clubhouse
with dining and recreation facilities.
 Fraternal
Clubs

• Fraternal club enjoy large memberships.

• Usually such clubs own a facility that is available to
members for banquets, weddings, and other special
events.
• Food services may be operated by the fraternal club
as well.
• They represent a significant economic stimulus to
host destinations and nearby tourism-related
venues.
 Service at Clubs

• Unique nature of clubs & their membership

status raises the service requirements &
experience of guest.
• Members want to feel like the service they
receive is a step above in other venues.
• The first priority of a club manager is member
satisfaction.
Continue….
• An assistant manager might be in charge of food and beverage
operations, and supervise the purchase and service of food
and beverage in the dining room and lounges.
• Assistant manager would work closely with the chef, who is in
charge of the kitchen, or the purchaser, who is in charge of
the expenditure of club funds.
• Other areas of responsibility for the assistant manager may
include the athletic facilities, as well as the security and
maintenance of the clubhouse itself.
 • The fitness boom has
Health and provided a tremendous
Wellness opportunity for today’s
Facilities hospitality industry.
• By catering to this trend,
resorts and spas are
attempting to capture a
share of the extensive
fitness market.
• Clubs and wellness
facilities also meet current
demands for attractive,
convenient exercise and
healthy-lifestyle programs.
• The word spa is actually the name of a
town in Belgium that had a popular mineral
spring. Spas
• Two types of spas : resort spas and
amenity spas.
• Resort spas are single-purpose spas, away
from outside temptations and distractions.
• Amenity spa is a spa within a resort.
Amenity spas have some spa facilities,
such as exercise classes, facials, and
herbal wraps.
• A major component of today’s spa
operation is its distinctive food service.
• Spa cuisine, as it is called, emphasizes low-
calorie, low-fat entrees that feature an
abundance of fresh fruits and vegetables
and complex carbohydrate.
 Fitness Clubs and
Centers

• Many private city clubs offer

extensive fitness facilities, including a
running track, swimming pool,
weight room, handball court, and the
latest high-tech stationary bikes,
treadmills, and stair-climbing
machines.
Recreational Theme Parks
History of Theme Parks
Facilities - The historical roots of theme parks originate
in the fair.
- Historians note that fair have existed for
thousands of years, and the earliest fairs
were probably agricultural shows.
- One of the earliest known amusement
parks was Vauxhall Gardens in England,
created in the 1600s.
- Amusement parks were first built in the
United States in the 1800s at popular
beaches.
- The major attraction was often a roller
coaster, originally called a ‘sliding hill’.
- The establishment of Coney Island in 1895,
however, took amusement parks to a new
level.
 Today, the resort industry is highly competitive, and major brand
expansion is occurring, perpetuating a more segmented customer
marketing effort and acquisition strategy.
 Two primary group targeted for intense marketing by the resort
industry:
i. Baby boomer generation (1940-1964) - group that desires
either
a family vacation or an active, entertaining one with a chance
to
meet new people.
ii. Veteran generation (1920-1940). - represents a growing
percentage of the total population.
 Economic conditions have caused vacationers to take shorter,
more frequent vacations.
 This, coupled with the fact that more families are dual-income
 Resort developers and managers must rely on more than location and
natural scenic beauty to attract guests.
 3 essentials help define the success of a resort:-
The reputation of the resort
The attractions of the area surrounding the resort
The amenities & facilities offered by the resort itself
 Resorts are also diversifying their customer base - through the
convention & meetings market
 By creating new market segments & expanding service,
the future of resort management can remain bright
 Cruise Ship Industry
Growth of the Industry
 Cruise lines are poised for growth in the 21st century. New ships are
being launched with capacities for over 2000 guests.
 From 2000 to 2005 the North American cruise ship customer base grew
from 6.5 million to 9.6 million, while the worldwide cruise ship
customer count grew from 7.2 million to 11.1 million customers.
 The majority of the growth domestically has come in the form of two-to
five-day mini-vacations. Over 9 percent of the total North American
growth between 2000 and 2005 was attributed to shorter vacation
getaways.
 The cruise industry is one of the most exciting growth categories in the
entire leisure market. The uniqueness of the cruise industry is its
customer loyalty and targeted market segments.
 Since 1980, the industry has had an average annual passenger growth
rate of 8.1 percent per annum.
 Facilities & Amenities

Most cruise ships are broadening their guest

amenities considerably with extra suites, adult-
only zones, and more restaurants.
Many of the cruise ship lines offer a wide
variety of culinary choices and sophisticated
entertainment products.
 Cruise Ships & Safety/Security

Safety & Security is a major concern within the cruise ship

industry
 Threats may come from piracy, physical attack, disease
outbreak or unstable political conditions present in exotic
destinations.
 The large number of people aboard a ship, coupled with the
variability of international destinations, offer many safety and
security challenges.
 The issue of risk and crisis management covers a broad
spectrum of potential dangers, but it is essential that operators
examine them all and ensure they have the skills, strategy and
awareness to respond appropriately.
Cruise ship operators are now taking an even more serious
approach to intelligence, security and strategy. In planning
itineraries, for instance, a clear view of the changing
geographical risk pattern is vital.
Evasion and defense are two options available to cruise
ships threatened by pirates. Among the technologies for
consideration are advanced sonic weapons which make it
difficult for a pirate ship to approach the vessel it has
targeted
Another threat to passenger safety that surfaced in 2005 is
threat of disease.
 Like piracy, such outbreaks can have a negative effect to
the public, so appropriate countermeasures and control
strategies are a priority.
 Illnesses found on cruise vessels are similar to those that
occur in high-density locations such as university
dormitories, day care centers, nursing homes and summer
camps.
- Therefore, it is important is to cooperate fully with the
relevant authorities and follow their guidance.
- The Process & Systems to protect passengers and control
risk are in place, and it is up to industry members to
adhere to them.
Cruise Ship and the Environment

o Most of the cruise industry follow international protocols for

environmentally sound practices.
o The international regulations governing the environmental
management of marine operations place strong emphasis on
waste reduction and recycling and using cleaner-burning
propulsion technology in new ships.
o Technological advancement has found its way into the cruise
ship in many ways. Ships utilize technological advancements to
reduce fuel consumption and air emissions.
o The new technology is designed to demonstrate the feasibility of
using seawater to ‘scrub’ (reduce) engine emissions of vessels.
i. Ballast water and non-native species - Cruise ships travel to
open ocean environments to take on their ballast water, so the
chances of taking on non-native species are reduced.
ii. Wastewater includes both gray water or liquid waste, which is
the by- product of cleaning, and black water (sewage). The
industry has agreed to discharge gray water and black water
only when ships are underway at a speed of not less than 6
knots & are more than 4 miles away from port.
iii. Hazardous waste. Current standards require the disposal of all
hazardous materials by licensed land-side vendors, who must
ensure full compliance with laws and environmental
regulations.
Cruise operators are eliminating the use of products that result
in the production of hazardous waste materials.
iv. Oily bilge water is the result of minor engine and machinery
leaks, as well as residue from maintenance.
 Career Opportunities in the Cruise Industry
Career opportunities range from maritime-specific positions to the full
spectrum of hospitality services.
Most seagoing vessels are considered to be floating hotels and gaming
venues.
These ships require rooms division management, which includes front office,
housekeeping, guest services and executive management positions.
Food and beverage career opportunities are significant. (food & beverage
director, restaurant outlets manager, sales and marketing, event planning,
purchasing, culinary, beverage management and showroom management
positions.
Facilities engineering is a growing field, both in the hospitality industry
generally and the cruise ship sector.
Therefore, chief engineers and engineering specialists are in high demand.
While the ocean cruise business
is just one sector of the
industry known as “hospitality”
today it is sweeping many of
the other sectors.
The cruise industry is
challenging the resort industry
and is giving other aspects of
hospitality, including hoteliers, a
run for their money.
Some experts think that cruising’s
competitive edge is slipping and that
the cruise ship market is headed to
the point of saturation.

However, with smart marketing,

competitive pricing, and the creation
of new markets, perhaps the cruise
industry can avoid the pitfalls
experienced by its land
counterparts.
 Cycles of Legalized Gambling

 Throughout the history of the world, gambling has gone through stages of
legalization and regulation. The cycle begins with a government needing money.
 Governments do not want to increase taxes because the people are already outraged
about that prospect.
 Politicians see gambling dollars as a quick, easy way to make money.
 Once the decision was approved to allow casinos in the jurisdiction, construction
began. Money quickly flowed into economy, stimulating growth and taxes when
casinos were allowed in the jurisdiction.
 Casinos then enter the growth stage of the product life cycle and life is good.
Casinos make money and enter the maturity stage.
 However, inevitably a little trouble begins to enter in term of social problems such
as addiction and crime. The public outcry increases as social problem grow.
 Finally, governments are forced to regulate casinos to appease the problem.
 Asian Casino History
 Currently, Asia is booming with mega-casino projects. According to the
International Gaming and Wagering Business (IGWB) trade publication, in August
2007, the Venetian Macao opened with 16000 employees, which is almost 5 percent
of the total labor force.
 In Singapore, Resorts World at Sentosa, the Singapore recreation island, is in the
process of building a complex of 6 hotels, Southeast Asia’s first Universal Studio
theme park, and the world’s largest oceanarium.
 The Las Vegas Sands is building another mega-resort in Singapore, located in the
city-state’s business strict.
 In Vietnam, Pearl of Asia Development Corp. is building a $9 billion luxury
entertainment complex that will include sports facilities, a concert area, a world-
class health center, parks, gardens, & a world-class high-stakes casino.
 Indonesia is another country rethinking its decision to forbid casinos.
 Australia has been developing gaming at a fast pace, and some say the country’s
industry is now in its maturation stage.
 The 2008 economic uncertainty felt world-wide may significantly affect on-going
global economic activity. Only those enterprises capable of weathering the storm
will survive until the next economic cycle occurs.
 Malaysia

• Casino de GENTING’s history is intertwined with the famous resort. Genting’s

founder, Tan Sri Lim Goh Tong had a dream of building a world-class hill resort,
and part of that dream was the establishment of a casino that would rival any
in Asia.
 On 28 April 1969, he submitted an application for a casino license to the then
Prime Minister Tunku Abdul Rahman. By sheer providence, a cabinet meeting
was being held that very afternoon, and Tan Sri Lim Goh Tong’s application
approved. To this day, the Casino de GENTING is the first and only casino in
Malaysia.

 Opening in 1971 at the same time as the Genting Resort, the Casino de
GENTING offered thirty tables with games like Blackjack, Tai Sai, Roulette and
French Boule, as well as a selection of “one-armed-bandits” – the
characteristic lever-powered slot machines.
 The casino was then located where Theme Park hotel stands today.
 Malaysia’s one and only gaming venue, the Casino de GENTING is open
everyday of the year. Divided into a variety of themed sections, the Casino de
GENTING offers something for everyone, be it the lights and glitter of
Hollywood or the excitement and luxury of elite gaming at the Monte Carlo.
On the European history side, gambling was always associated with predictions and
the aristocracy.
In Greek mythology, when a person wanted to make a difficult decision, he or she
went to the oracle to ask for guidance.
In Rome, gambling occurred more often at the mineral spas and baths where people
soaked in the waters to be healed.
Betting on cards and dice was common, readily available - helped to kill time away.
The rich, who did not have to work, were constantly looking for distractions from
the boredom of their lives.
As a result, gambling developed as a pastime for the aristocracy.
However, the religious authorities took a dim view of such distractions.
In France, theater always present dramas about gambler who ruins his family.
As a result of the public pressure, France signed a decree banning gambling and
casinos on the night of December 31, 1837.
At about the same time, there were 24 casinos in Germany. A similar wave of
prohibitions and formal notices followed, and Germans were required to close their
casinos in 1848.
However, a year later, the governors of Baden authorized the reopening of the
town’s gaming rooms because its economic development depended on the money.
As a result, Casino Baden -Baden continued to prosper.
Today casino Baden-Baden in western Germany is known as one of the most
beautiful and opulent casinos in the world.
Francois Blanc made his fortune owning a series of German casinos. He was so
successful at his trade that in the early 1860s, Charles III of Monaco went to him to
work out a deal.
Charles III was in financial difficulties and wanted to create a casino monopoly in
Monaco, so he made a deal with Francois Blanc to set up a casino in a new town,
Monte Carlo.
The casino association took full responsibility for the infrastructure of the town and,
in exchange, Monaco citizens were forbidden to gamble.
Francois maintained his golden touch at running casinos and Monte Carlo became
the place for the rich and famous to party and gamble.
In the Netherlands, the state-owned monopoly Holland casinos is finding that while
it has more visitors, its guests are spending less money per visit.
Russia, once the world’s fastest-growing casino market, is going through unstable
political times, and as a result gaming companies there are looking to expand into
Western and Eastern Europe.
 Chile has entered the list of countries allowing gambling, with 8 projects
opening in 2008 another 6 slated to open in 2009.
 Venezuela has been cracking down on illegal operations by imposing
stricter license renewal rules and suspending new license distributions
until 2011.
 Regulations promulgated in Ecuador in 2002 stipulated that casinos
could only operate in hotels; however, new regulations promulgated in
2004 did not include this mandate.
 As of this writing the Gran Casino Guayaquil was under construction and
on track for an October 2008 opening, but no one is sure whether the
casino is legal.
 Argentina’s Cordoba Province is shutting down its unprofitable
government-owned casino in Alta Gracia.
North American Casino History

Native American believing that gods determined their luck and

chance, developed games and language related to gambling.
The British colonization of America was partly financed through
various lottery game proceeds beginning in the early 17th century,
when the Pilgrims started a lottery to help fund their voyage to the
New World.
Lotteries played a very important part in early American life. When
the colonies needed infrastructure, such as safer roads and lighting,
they funded them with a lottery because they did not have any taxes.
In 17th century, Louisiana created the largest lottery in America.
Originally, it was to help Charity Hospital in New Orleans finance its
care of poor citizens who could not afford medical care.
In 1930s, Nevada legalized gambling again. Some say it was to allow Californians a
place to play adult games without jeopardizing their social standing back home.
Now, people go to Las Vegas for a weekend or week’s vacation. Las Vegas
continually grows and changes to meet the new challenges of its competitive
environment.
As its competition has grown, Las Vegas casinos have evolved to become mega-
resorts that include some of the world’s largest hotels, multiple name-brand
restaurants, shopping complexes, health spas, and convention centers, the newest
attraction.
Las Vegas was so successful that when Atlantic City, New Jersey found itself
penniless and without its resort clientele, it asked to be the only city in New Jersey
to have casinos.
12 casinos were allowed to operate by a law passed in 1976, and the first opened in
1978. Atlantic City was an instant hit because it was located in the midst of the
densely populated Northeast Corridor.
 Native American Casino history

By 1988, most of the Native American population in the United States was in a state
of poverty. Technically, they were citizens of sovereign nations within the American
nation.
That meant they did not pay taxes, but neither did they get any assistance from the
state governments of the states where they resided.
In 1988, the Indian Gaming Regulatory Act changed everything. It allowed gaming
on Indian reservations, provided that each tribe negotiated in good faith with the
relevant state government to create a compact.
Foxwoods Casino in Ledyard, Connecticut was the first native American casino to
open under the new law.
Led by one of the few Native Americans to earn a doctorate in business, Foxwoods
became one of the most successful and most profitably run casinos in the world.
.
Riverboat Casino History
The last type of gambling in America is the Riverboats.
In 1812, the first steamboat “New Orleans”, made its way up the Mississippi River.
By 1860, there were over 700 steamboats making their way up and down the river.
Since Mississippi river was the main route to get plantation products to the docks,
the boats were packed with all kinds of travelers.
However, there was not much to do on board other than gamble, so many cheats as
well as businessmen frequented the tables.
When Gold was struck in California, trains became a new & faster mode of
transportation and the Civil War made Riverboats an unsafe way to travel- so the
riverboat use faded.
In 980s, economic hardship struck the Midwest, unemployment was high, state
governments needed capital and new revenue sources and state residents needed
jobs. - casinos were identified as the way to revitalize the economy.
Therefore, in 1989, the first riverboat casino began to ply the Mississippi River,
operated by the state of Iowa. Within 4 years, states of Illinois, Mississippi,
Louisiana, Missouri & Indiana approved riverboat casinos – as a way to contain
gambling in a small area, while providing economic benefit
¥ In America, the benefits from casinos have been impressive. There are
467 commercial casinos in 12 states plus 424 Native American
casinos in 29 states.
¥ As the state governments had hoped, the casinos earned $34.13 billion
in gross gaming revenues in 2007, which was a 5.3 percent increase
over the previous year.
¥ The largest growth in gross gaming revenues occurred in Iowa (16.2
percent) and Mississippi (12.5 percent).
¥ Casinos are a unique industry because their reputation has been less
than socially acceptable, yet despite this perception, the casino
business has grown rapidly.
 Major Players
in America
• The Casino Industry came of age in 2005, when
several casino companies merged, creating three
of the largest gaming companies:
– Harrah’s Entertainment (including Caesar’s)
– MGM Mirage ( incorporating Mandalay Bay Group)
– Penn National Gaming (merged with Argosy)
 Harrah’s Entertainment
• Started in 1937, when William F. Harrah opened
his first Bingo Parlor in Reno, Nevada
• In 1971, Harrah’s stock was offered to the
public.
• In 1972, Harrah was listed on the American Stock
Exchange (first gaming corporation to be listed
on NY Stock Exchange)
• In 2005, Harrah’s Entertainment completed a
$9.3 billion merger with Caesar’s (largest merger
in gaming history)
Example of the
Casino
 MGM Mirage
• MGM Mirage is diversified company with
interest in gaming, hospitality & entertainment

• This company operates twenty-four casino

• In 2005, it merged with Mandalay Bay Group
also known as Circus Circus

• In 2008, MGM owned and operated seventeen

properties in Nevada, Mississippi and Michigan
had 50% investment in other properties in
 Penn National Gaming
• This company began as Penn National Race
Course in 1972
• In 2005, it merged with Argosy Gaming whose
was original property was the Alton Belle
Casino
• Penn National Gaming’s brand names include:
– Argosy
– Black Gold
– Boomtown
– Casino Rama
– Empress
• Promote construction trade – to build casinos
• Creates jobs for locals & generates many
different tax bases for Government.
• Expansion of local population as people move
to an area for jobs- as a result increases the
need for public facilities (schools, hospitals,
infrastructure like roads, banks, grocery
stores, housing etc)
• All these people pay taxes directly & indirectly,
government collects taxes & prospers.
As with growth of tourism, this expansion will
come with costs
• Casinos have many areas called “cages” –
money held in the casino (chips, cash)
Organize crime because of large amount of
money located in one area.
 Other negative effects (bribery, robbery,
theft, gambling debts)
 Similarities & Differences between Casino and
Other Hospitality Operation
• Many casinos have hospitality operations as amenities.
* Provide lodging facilities
* Have food and beverages outlet – at least 3 restaurants,
food courts.
* Most Casinos are labeled “casino resorts”
* Other casino amenities may include room
service, catering, meetings and convention,
bowling alleys, swimming pool, tennis court,
shopping and golf.
* Entertainment to attract tourists
 Prime Objective of Casino

• Controlling the Money

- The primary focus of casino management is tracking money
– money has to be accounted for each time it changes
hands. ( from cash to chips)
• Security and Surveillance (“eye in the sky”)
- Security: The security people walk the casino floor & make
sure everything is above board
- Surveillance: Persons who are in office above the gaming
floor, watching hundreds of cameras embedded in the
ceiling of the casino.
• Budgets and Finance
- Before, Casinos only wanted hotel & restaurants as
amenities, but today hotels & restaurants are profit
centers.
Casino Customers
A casino provides different customers with different levels of service.
Casino carefully tracks each patron and documents each of his or her
monetary transactions through the use of employees and computers.

The levels of service is divided into three:

i. Low Rollers
ii. Middle Rollers
iii. High Rollers
CASINO/RESORT ORGANIZATION STRUCTURE

VICE PRESIDENT

• The vice president has overall responsibility for all gambling departments.

• They set strategy for each department and has a great deal of influence in
the organization & responsible for all the major revenue-generating
activities of the business

CASINO MANAGER

• Ensure the department functions consistently.

• Must figure out the best way to execute ideas from the vice presidents,
including administrative functions such as writing policies & procedures,
hiring & training potential staff members.
• Casino managers ensure customers & employees satisfaction, and must
demonstrate exemplary leadership
ASSISTANT CASINO MANAGER

• Takes the role of the manager in his absence.

• Tend to spend more time with the supervisory and
front line staff.
• They are more in touch with direct customer service
interaction than the casino manager.
• Responsible for ensuring that the supervisor are
performing their jobs satisfactorily.
CASINO SUPERVISOR

 The hardest working people in the casino. They have to watch

everyone of the gaming floor; customers and employees.
 Supervising employees performing a task & handling complaints.

Table Games Position

 Table shift manager
 Pit managers - responsible for maintaining record of customer
activity & handling financial accounting tasks ( closing inventory,
need for more chips)
 Supervisors
 Dealers - responsible for keeping games moving & making sure
the games are played according to rules.
 Other Table Games positions
 MECHANICALS OR SLOTS
• A Slot Machine (American), Fruit machine (British)
Slots (Canadian), Poker Machine or “Pokies" (slang) (Australian
& New Zealand) is a gambling
machine with three or more reels which spin when a button is
pushed.
• Slot machines are also known as one-armed bandits because
they were originally operated by a lever on the side of the
machine (the one arm) instead of a button on the front panel,
and because of their ability to leave the gamer penniless
(bandit).
• Many modern machines still have a legacy lever in addition to
the button.
• Slot machines are the most popular gambling method
in casinos and constitute about 70 percent of the average
casino's income
SLOT SERVICE PERSONNEL

• A slot supervisor is responsible for supervising gaming

operations and personnel within a casino. This supervisor
enforces all rules and procedures of the gaming industry.

• Slot supervisors go around the slot area of the casino floor to

observe operations and ensure operations are carried out
according to gaming industry rules and regulations.
• The person in this position guarantees stations (such as the
change and redemption cages) and games are covered for each
shift.
• A slot supervisor explains rules of the house to patrons
frequenting the casino. She handles service complaints from
patrons as well.
THE END
OF
CHAPTER