If gaming has some of the largest margins known in any industry …
Then why are we screwing with the most profitable part of our business?
Although the casino resort business has changed in the last two decades and identified profitable new revenue streams in hotel, food and beverage, retail, entertainment, and the like, gaming remains the biggest revenue generator in most casino companies and at most casino properties.
Gaming has some of the largest margins known in any industry. It is our cash cow.
Yet, over the last few decades, gaming operators, for a variety of reasons (recession, increasing costs, competition, investor demands, etc.), have been squeezing value from the core gaming customer’s gambling experience.
Slot machines take gamblers’ money faster with less “time on device.” New table games have higher house edges, and even mainstays like blackjack have had “rule changes” (“blackjack” now pays 6-5 at many casinos). It costs more for gamblers to access gambling funds at onsite casino ATM machines. Casino hotels now routinely charge “resort fees” for packaged services that were previously free, are largely unwanted, and leave less money for gambling.
And the result of this ongoing “player value squeeze?” In many gaming markets, casino players are visiting casinos less often or playing less when they do visit. Some players have abandoned casino gaming altogether. Some players have shifted loyalties from “value eroding” casinos to casinos that still provide players “a fair shake.”
If the erosion of player value is the cause of the doldrums in the casino industry today, then profitably restoring player value is certainly the solution. But how to do that intelligently, systematically, and in a way that matters to gamblers, is the real challenge.
How can we provide players a “fair shake” while increasing our profits?
Let me propose something to you. Although gambling in most markets is the most profitable part of our business, some of you have shifted your focus away from the gambler and are concentrating your efforts on new, non-gaming amenities.
If you agree that your gaming product and your gamblers are still a core profit center for you and have been negatively impacted by eroding value in your casino, then let me introduce you to Raving’s Profitable Value Restoration Program:
Raving will help you restore value to your players and increase your bottom line by:
• … Evaluating how your property stacks up from your players’ perspective and against your major competitors on Service, Slot Hold Percentage, Player Reinvestment Rates, Amenity Pricing, Add-On and Service Charges, Table Game Rules, etc.
• … Providing you with a “Restoration Road Map,” based on our custom research and analysis for your property, that may include: strategic marketing, signature promotions and operational tactics that will resonate with casino gamers and lead to competitive advantage.
You’ll have exclusive access to our team including myself; Anthony Curtis, Publisher of Huntington Press and the Las Vegas Advisor; Dr. Deb Hilgeman, Ph. D., Raving Partner, Market Research; Buddy Frank, Raving Partner, Slot Operations and Marketing; and Nicole Barker, Raving Partner, Database and Loyalty Marketing.
So, I ask you again, why are we screwing with the most profitable part of our business? There are guests out there who want to play at your casino; they just want to feel that they get value!
Are you interested in talking about the possibilities? To get more information on Raving’s Profitable Value Restoration (PVR) consulting services, or to set up a free, no-obligation call, please contact Amy Hergenrother, Raving’s VP of Business Development at 775-329-7864, [email protected].
President and Chief Strategist
Raving Consulting Company