According to this case study,could u analyze the economic factors and demographic factors effect the casino industry(positive and negative)?pls tell the reason of each point,thank u!! What economic factors have a positive or negative impact on the casino industrythe same question of demographic.thx!!pls help me solve this.

by lumalha, Michigan with the CARE CASE 2 THE GLOBAL CASINO INDUSTRY IN 2017 For well over fifty years, the casino business has been on moll, on its way to becoming a $150 billion a year global Pacific region Singapore already has two casinos, while the Casinos have spread to other locations across the Asia- industry. For much of that period, the U.S. has been lead Philippines is opening new ones and Japan is planning to ing the charge, accounting for nearly half the global gam legalize them. Yet even as casinos are expanding into new bling revenues as recently as 2010. Most of these revenues locations, there are concerns about the potential for gaming have come from Las Vegas and Atlantic City, magnets for revenues. Revenues from gaming have dipped considerably gamblers from around the world. Over the last couple of in locations like Macau and Atlantic City over the last three decades, these two locations have accounted for a large por years, while they are still recovering in Las Vegas Casino tion of the total revenues generated by all forms of casinos owners are trying to figure out how to draw in more gamblers throughout the United States. Over the past decade, however, Las Vegas and Atlantic by creating more interest among the younger generation. City have had to deal with increased competition from Riding an American Wave other locales, as casinos have opened all across the U.S. Although gambling has existed in the U.S. since colonial as other states have legalized gambling in order to generate times, the recent advent of casinos can be traced back to more tax revenues and to promote tourism. Over a dozen the legalization of gaming in Nevada in 1931. For many states now generate substantial revenue from their casinos. years, this was the only state in which casinos were allowed. many of which have opened on waterfronts such as rivers After New Jersey passed lows in 1976 to allow gambling and lakes. When combined with Native American casinos. in Atlantic City, the large population on the east coast gambling revenues in other parts of the U.S. now exceed acquired easier access to casinos. Since 1988, more and those generated by casinos in Las Vegas and Atlantic City, Casinos in Las Vegas and Atlantic City are able to rely because of the tax revenues that they can generate. more states have begun to legalize the operation of casinos upon gamblers who come from all over the world, as far As casinos have spread across the U.S., there has been away as China. Although casinos have operated for a long a growing tendency to regard casino gambling as an accept time in Europe and the Caribbean, no single location was able form of entertainment for a night out. A large part of ever able to compete with Las Vegas or Atlantic City, Las the growth in casino revenues has come from slot machines Vegas offers more than two dozen large casinos on its strip These coin operated devices typically account for almost that have spent lavishly to differentiate themselves from all two-thirds of all casino gaming revenues (see Exhibit 2). others. Luxor's pyramids and columns evoke ancient Egypt: A major reason for their popularity is that it is easier for Mandalay Bay borrows looks from the Pacific Rim: and the prospective gamblers to feed a slot machine than to master Venetian's plaza and canals re-create the Italian destination. the nuances of various table games. But more recently, the dominance of Las Vegas and Atlantic City in the global market has been challenged EXHIBIT 1 Top Casino Revenue Locations, 2016 (billions) by the development of several casinos along a strip in the Location Revenue former Portuguese colony of Macau, Casinos have existed in Macau for decades, but basically served a local popula Macau $32.0 tion. Since a monopoly on casinos by a single local tycoon was terminated in 2002, there has been a proliferation of United States 30.00 megasized high-end casinos there, developed and managed Singapore 6.0 by some of the world's largest casino operators, including Australia those from Las Vegas. This has allowed Macau to grow from a tiny backwater territory to a booming center of gam South Korea 2.5 bling with casinos generating over $40 billion, more than 2.0 Six times that of the Las Vegas strip (see Exhibit 1). Philippines 20 Malaysia Sen Las Ve wance of user Alan 1. Pese University. Materialen Custom priched urces to be well for preso codici 2017 Jamal Share and Alan . S: Morgan Sunter CASE 2: THE GLOBAL CASINO INDUSTRY IN 2017 C3 61% EXHIBIT 2 Favorite U.S. Casino Games, 2016 Slot machines Blackjack Roulette EXHIBIT 3 Financials of Macau Casinos, 2016 Share of Revenues Highrollers 63 Lowrollers 34 Share of Profits 35% 19 8 52 Poker 4 Craps See Dechetrestimate Source American Gaming Annection where were typically small and seedy. In part, this was because of Over the years casinos in Las Vegas and Atlantic City the monopoly on gambling in the territory that was held by have tried to draw gamblers by developing extravagant Stanley Ho, a local tycoon. However, this began to change new properties. The most ambitious recent development in 2002, as the liberalization of casino licensing led to the in Las Vegas was the opening by MGM Mirage of its City development of new casinos by some of the world's larg Center, an $8.5 billion minicity spread over 67 acres that est casino operators, including many of the U.S. firms that includes luxury hotels, condominium units, restaurants, wanted to find markets outside of Las Vegas. "The Las and shops. Even some of the older properties have under Vegas of the Far East is how Sheldon Adelson, head of pone extensive renovation, such as Caesars Palace adding Las Vegas Sands, has described the recent development of a new Colosseum and a new Roman Plaza Atlantic City Macau. welcomed the muchballyhooed opening of the $2.4 billion Macau has grown explosively with a tripling of casinos Revel Hotel built on 20 acres of beachfront, following the from the dozen or so that existed before 2002. Many are opening several years earlier of another lavish resort, the situated on the Cotal strip land that was once a stretch Borgota Hotel, which offered amenities such as penthouse of water between the islands of Coloane and Taipa. Las spes and tropical indoor pools. Vegas-based firms such as Sands and Wynn have been Aside from ramping up the appeal of their particular plowing billions of dollars into new casinos there. Sands. properties, most casinos have also offered incentives to keep which already has a supersized version of the Venetian with their customers from moving over to competitors. These Grand Canal and a Rialto Bridge, has added a complex incentives can be particularly helpful in retaining those called the Parisian with an Eiffel Tower. Even locally based high rollers who come often and spend large amounts of Sociedade de Jogos de Macau is opening a $3.9 billion money. Cusinos try to maintain their business by providing complex that will feature three hotels, one modeled on the complimentary rooms, food, beverages, shows, and other Palace of Versailles perks each year that are worth billions of dollars. Gamblers Macau's dramatic rise in the casino business owes can also earn various types of rewards through the loyalty much to a collision of geography and history. The Chinese programs offered by the casinos, with the specific rewards love to gamble, but the leaders in Beijing have long for being tied to the amount bet on the slot machines and at bidden casinos on the mainland. They did, however, let the tables them continue to operate in Macau after the Portuguese Some of the larger casinos in the US have also tried handed over sovereignty in 1999. Like Hong Kong. Macau to fend off competition by growing through mergers and has retained a degree of legal autonomy and is also a few acquisitions. In 2004. Harrah's announced that it was buy hours or less flying time from a billion potential gamblers ing casino rival Caesers, allowing it to become the nation's in China. "We sit next to the biggest market in the world leading operator of casinos, with several properties in said Edward M. Tracy, chief executive of the Hong Kong- both Las Vegas and Atlantic City. This deal came just based subsidiary of Las Vegas Sands. It's one billion month after MGM Mirage had stated that it was buying more people than the US the Mandalay Resort Group, allowing it to double the num Macau has been attracting a growing number of visitors ber of casinos It held on the Las Vegas strip. Firms that from mainland China. Nearly 20 million people, or one in own several casinos can pitch each of their properties to five Chinese who ventured outside mainland China lust different market and allow their customers to earn rewards year, came to Macau to gamble. Many come from neighbor on the firm's loyalty program by gambling at any of these in Guangdong province, usually on day trips. But bigger properties important role in fueling Macau's growth. These high roll Exploiting the Chinese Market ers will spend as much as $10 million on gambling in a Though gambling has been legal for over a century in the trip. They account for up to 65 percent of the revenues Macau, which was a former Portuguese territory, its casinos for the larger casinos (nee Exhibit) C4 CASE 2 THE GLOBAL CASINO INDUSTRY IN 2017 Even as Macau has shown remarkable growth over the countries are rushing to build upscale casinos with luxury last decade, its prospects for the future remain quite bright hotels designer shops, and cultural attractions. Analysts a securities firm forecast that gambling revenue The casino operators that are developing casinos all over from Macau casinos could easily reach $80 billion by 2018, the region are hoping that they can lure Chinese high roll In part, this rise would be driven by an increase in visters away from Macau. A Chinese businessman who visits tors from mainland China because of rising affluence and Macau's casinos stated that the new Chinese leadership's improved transportation China had increased the capacity crackdown on official corruption and Maunting of wealth of roads and high-speed trains to the territory, providing will drive clients to other locations. "Beijing has too many access for more visitors. Visitors from all over the world cameras watching us in Macau." he explained. Solaire, would also have better access because of a series of bridges recently opened in Manila, is willing to send a private jet to that would connect Macau with Hong Kong's huge interno pick up big spenders from all across China. "If we can get? tional airport percent of Macau business to come here." said the casino's chief operating officer, then we all achieve our goals for Spreading across Asia the market." The growth of gambling revenues in Macau has led cout tries across the Asia-Pacific to abandon their hostilities to Moving beyond Gambling gambling and to encourage the development of casinos. Over the last couple of decades. Las Vegas has moved Casinos have been opening in several countries, includ beyond gambling to offer visitors many choices for fine ing Singapore, Philippines, Malaysia, South Korea, and dining, great shopping, and top-notch entertainment. This Australia, and are likely to take off soon in other places has allowed most of its higher end casinos to generate rev such as Japan, Vietnam, Taiwan, and Sri Lanka. A group enues from offering a wide selection of activities apart of investors have even made a deal to open a casino near from gambling At MGM Mirage, for example, revenue Vladivostok in Russia's Far East. They claim that it takes from non gaming activities has typically accounted for less time for a high roller in Beijing to fly there than to almost 60 percent of net revenue in recent years. During steamy Macau. the 1990s. Las Vegas had tried to become more receptive to Singapore, in particular, has been extremely successful families, with attractions such as circus performances, ani with its two new upmarket casinos. In 2010, the island state mal reserves, and pirate battles. But the city has been very issued permits to two large casino operators. The Marina successful with its recent return to its sinful roots with a Bay Sands is part of Las Vegas-based Sands casino open stronger focus on topless shows, hot night clubs, and other ations and Resorts World Sentosa is run by Malaysia's adult offerings that have been highlighted by the new adver Genting group. Even though Singapore has limited the size tising slogan "What happens in Vegas, stays in Vegas." of its casinos and discourages locals from visiting them, By comparison, visitors are drawn to Atlantic City mostly they earn more than $6 billion annually, almost as much as because of gambling. Although it does offer a beach and a all of the casinos on the Las Vegas strip boardwalk along which its dozen larpe casino hotels are Among the other contenders, the Philippines looks like lined, the city has never been able to develop itself as a beach it is poised to claim a substantial share of global casino resort. The opening of the much-ballyhood Revel a few years revenues. Malaysia based casino piant Genting kickstarted apo was part of a drive to make Atlantic City much more Manila's casino craze when it opened Resorts World Manila competitive with Las Vegas. But it failed to replicate the so opposite the capital's main airport in 2009. The opening cess of the Bogota Hotel, the major new resort to open there of the new casino represented a departure from the older in 2003. The failure to develop other forms of entertainment smoke filled gambling dens and its success has fured other has led to the closing of several big casinos, including the casinos. As many as four new casinos have been developed Revel, as casinos that have opened in several neighboring on a large plot overlooking Manila Bay. The first of these states have drawn amblers away from Atlantic City Solaire Resort and Casino, is a sleek plate-glass building Macau has also been trying to reduce its dependence with a suitably fashy interior created by Paul Steelmana on gaming. By 2017. gambling revenues at its casinos were casino designer from Las Vegas generating revenues that accounted for almost four.fifths Efforts are also underway to boost gambling in Japan by of the territory's economy. But these revenues have begun Betting the government to hits ban en casinos. Al present. to decline, in part because of the China's economic slow tambling is confined to seedy areas such as Kabukicho, a down. Another factor has been that country's sweeping sleazy one kilometer bloek of Tokyo. The prime minister. crackdown on corruption. Many of the high rollers from Shinzo Abe, is likely to approve legalization of casinos as the mainland were gambling with the proceeds of shady a way to boost Japan's sluggish growth. Proponents of cast deals which are now subject to greater scrutiny. This is nos argue that casinos will boost the country's carnings forcing the casinos to shin their focus away from the older. from foreign tourists and deliver a tax windfill to the hear hardcore gamblers who come primarily to gamble toward ily indebted government. A Japanese business magazine has younget, fun loving pamblers who see gambling as only one argued that the country is being left behind as neighboring part of their Macau experience. CASE 2: THE GLOBAL CASINO INDUSTRY IN 2017 CS The newer casinos are trying to offer more non-gambling intend to develop a stronger presence in the US market by activities by including restaurants, shops, cinemas, spas, building one of the biggest new resorts in Las Vegas with a and even concert arenas. The shops inside Sands casinos 3.500-room hotel and 175.000 feet of gambling space. in Macau, for example, have been generating as much as $2 Casino operators in Macau are also continuing to make billion of revenues. Edward Tracy, the head of Sands China, new bets, even as competition grows in neighboring coun is also bringing in shows ranging from boxing matches to tries. Eight new casino complexes, all of which will offer Bollywood award ceremonies. One of the newly opened many forms of entertainment are being added. promising casinos has an enormous fortune diamond that emerges to almost double the supply of hotel rooms on the strip from a fountain every half hour to the delight of photo Galaxy Entertainment, a local casino firm, claims that with snapping onlookers. There's an opportunity for Macau to its $7.7 billion expansion its already huge Macau casino will attract a new breed of customer, one that is looking for a be bigger even than the Pentagon. Another local operator. more holistic experience." said Aaron Fischer, a gambling SJM has developed a huge new resort on the Cotal strip analyst at a brokerage firm. to include a hotel designed by Versace, an Italian luxury Macau is now trying to overcome one of its most sent fashion house ous limitations-its small land area, just under 30 square As casinos emphasis shifts from older high stakes gan kilometers-by expanding business on the thinly populated blers to younger customers who enjoy gambling but are island of Hengqin. Three times the size of Macau, the island interested in dining, drinking, shopping and taking in shows, has been declared a special economic zone by Chinese off-casinos are also eager to embrace new types of aming cials. The idea is for it to develop accommodations and experiences that will attract Millennials who have grown up entertainments that can support Macau's aspirations for playing video and mobile phone games. "Gambling woulgo mass-market tourism. "Hengqin is the game changer for out of fashion. It will just become part of a wider offering Macau," insists Sands China head Tracy says lan M. Coughlan, president of Wynn Macau. "We've no really tapped all the demand that exists-we're far from it." Gambling on the Future In spite of growing competition from the many other US. ENDNOTES and world locations, Las Vegas and Atlantic City continue Rest. Abest for Mac. New Hot Tine Mura ment as well as gambling the clubs, stores, and concerts ? There all the lowe Tem September 2, 3 and shows. "I think we're seeing a shift away from Las Vegas Ind. as the only paming destination," said Stephen P. A. Brown Chronion All in en omline Net for Mac from U.N.LV. "But it is holding up as a tourist destina Yurt in December 20-2L 2014 5. The tion. Genting the Malaysian gaming group has recently Adunare La Video taken over the site of the Echelon, which was abandoned because of lack of funds during the recent recession. They New York Times March 2014.37 C6 CASE 2 THE GLOBAL CASINO INDUSTRY IN 2017