Seven trending gaming industry stories that will impact your casino Revenue Strategy.
1. Casino Revenues Surge in Atlantic City
Is it possible America’s Favorite Playground has finally right-sized after years of turmoil? A surge in first quarter operating profits certainly suggest it has.
“Figures released by the New Jersey Division of Gaming Enforcement show Atlantic City casinos’ total gross operating profit rose 30.4% year-on-year,” says Peter Amsel, a writer for CalvinAyre.com. “Revenue rose 8.6% thanks to an 11% rise in gaming revenue, while room revenue was up 4.2% as occupancy improved to 81.1%.”
Among the pack leaders, Caesars and Tropicana both did especially well in the first quarter. Caesars’ revenue grew nearly 21% from a year ago to about $106 million, and Tropicana’s revenue growth neared 20%.
2. Casino Revenues are Rising in Nevada, too
Atlantic City isn’t the only region experiencing casino revenue growth. In Nevada, revenues are continuing to inch upward despite dips in visitation and other setbacks.
According to the Nevada Gaming Control Board, April 2017 revealed a 1.19% improvement in revenue—or $10.4 million—compared to the amount generated in April 2016.
This marks a positive trend for the year as revenue has risen three out of the four months for the Silver State. And it did so despite the fact that April was the slowest convention month of the year so far.Global Casinos grow revenues, plus 7 trending #revenuestrategy stories Click To Tweet
3. Macau is on a Hot Streak
In one of the world’s biggest gaming hubs, revenue growth from high rollers and recreational gamblers alike continues to gain momentum. In fact, revenue is rising by an average of almost 24%—or $2.8 billion—according to according to data released by Macau’s Gaming Inspection and Coordination Bureau.
According to Forbes, guests are staying longer and coming from further away, thanks to the growth of hotel room supply.
“Luxury spending across China is up and that’s a good proxy for the high-end of the Macau market,” Union Gaming Group LLC analyst Grant Govertsen said. “At this point, we think the mass market continues to grow at least in the mid-teens, while the VIP growth rate is improving notably.”
4. MGM and Caesars Plan “Significant New Investments” in Atlantic City
As New Jersey’s Governor Chris Christie continues to modernize the regulatory scheme in Atlantic City to make it more effective for the state and more efficient for the casinos, entertainment companies like MGM Resorts and Caesars are beginning to move forward with new investments—potentially together.
“We are going to be working with our friends at Caesars to find out how we can further move Atlantic City along,” said James Murren, chairman and CEO of MGM Resorts International. “It’s not going to be easy, but we are up for the challenge.”
“It has been great to have a partner like MGM who is looking at properties that we can go develop,” said Mark Frissora, president and CEO for Caesars Entertainment. “We think the future is bright.”
5. Customer Service Drives Casino Visits
A recent survey by Raving Consulting found Customer Service ranked ahead of Slots, Promotions, Players Club Benefits and Direct Mail as the number one factor in driving a casino visit.
What’s this mean for your casino?
“Unlike promotions, players club benefits or direct mail, there’s no cost escalation as you and your competitors try to ‘keep up’ with each other,” says Deb Hilgeman, Ph.D., Senior Raving Partner, Market Research. “That’s why it’s a financially sound advantage to focus on offering outstanding customer service.”
A great casino customer service program is also nearly impossible to replicate so it will build loyalty with your guests on and off the gaming floor.
6. Do You Know Your Players’ Preferences?
As casinos and hotels increasingly merge interests, technology—specifically revenue management technology—is beginning to gain a more prominent role at the table.
“There is a lot of actionable data available to casinos, about consumer demand as well as guests’ gambling and on-property spending, which helps calculate a more robust customer worth when you’re making reinvestment decisions,” says Duetto’s CEO, Patrick Bosworth. “That information needs to be centralized so that all the casino’s key people can use it—and in a very coordinated way, not just in their silos with their own strategies to hit their own compensation targets.”
7. Borgata switches to ‘M life’ Rewards Program
With a new owner comes a new player rewards program for Borgata, Atlantic City’s top-performing casino. Beginning June 7, MGM’s M life program will replace the My Borgata Rewards program.
Tom Ballance, Borgata’s President and COO, said the ability to offer customers a connection to sister properties around the country “is an invaluable asset and something that we are extremely eager to introduce.”
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Tags: Atlantic City Casinos, borgata, Caesars, Casino customer service, casino distribution, casino gaming revenue, casino pricing, casino revenue management, casino revenue strategy, casino sales and marketing, casino technology, casino yielding, Duetto, gaming revenue, M Life, Macau Casinos, MGM Resorts, Nevada Casinos, Nevada Gaming, RMS, Tropicana