Seven trending gaming industry stories that will impact your casino Revenue Strategy.
1. Average wage in gaming supply now $90k
Workers in the gaming supplier industry earn on average $90,000 a year, nearly double the U.S. average, according to a new study being released this week by the Association of Gaming Equipment Manufacturers.
More than 55,000 people globally were directly employed last year by gaming suppliers, taking home a total of $4.9 billion in wages. The report doesn’t give a breakdown for how many of the 55,000 employees are based in the U.S. Gaming suppliers include makers of slot machines, table games and lottery equipment as well as companies building the systems, software and content utilized in gaming devices.
The average industry wage is affected by both high executive salaries and low entry-level pay. The top seven executives at Scientific Games earned a total of $22 million last year, according to Securities and Exchange Commission filings. That is equivalent to the average salary of 247 industry employees.
2. Wynn’s focus on non-gaming revenue
According to casino mogul Steve Wynn, none of the casino resorts he has owned and/or operated have ever done as much in gaming revenue as they have from amenities off the casino floor.
Hotel rooms, restaurants, shopping, spas, nightclubs — those are the real money makers in Las Vegas and many other casino meccas across the world, Wynn confirmed.
“The casino revenue has never been equal to 50% of the revenue, it’s always been less,” Wynn said recently during his company’s first-quarter earnings call. “Lately, it’s almost two to one. So what moves people are the adventures of a vacation, great service and choice of activities.”Study says gaming wages are double U.S. averages, plus 7 trending #revenuestrategy stories Click To Tweet
3. Is online gambling good for business?
Five Atlantic City casinos are involved in online gambling. And all five find online gambling to be extremely beneficial to their land-based businesses, according to Online Poker Report.
In addition to a new revenue stream, all five New Jersey online gambling operators have found:
- New customers are creating the bulk of online accounts.
- Online gambling has helped casinos re-engage with lapsed customers who were inactive for a year or more.
- Active customers who register an online account do not decrease their land-based spend or visitation frequency.
Caesars has never feared cannibalization. In 2013, Mitch Garber, who ran Caesars Interactive, told CNBC, “It’s been proved for a long time, in the U.K. and Australia, that online gaming does not cannibalize offline gaming.”
One of the biggest surprises of the New Jersey online gambling industry has been the performance of Golden Nugget, according to a separate report. Golden Nugget’s land-based casino revenue market share was only 8% in 2016. However, its online gambling revenue market share was a much larger 21.5%.
In 2017, Golden Nugget has continued to surge and now possesses a plurality of the online gaming market: 28.4% in March 2017. The next closest online operator is land-based juggernaut Borgata, which clocked in at 20% in March.
4. Macau casino shares fall after Chinese bank plans to modify ATMs
Las Vegas Sands Corp., Wynn Resorts Ltd. and other Macau casino operators tumbled on Wall Street this week after a leading Chinese bank pulled its ATMs from the world’s biggest gambling market as part of a corruption crackdown. Union Pay will replace the devices with new ones requiring more customer identification, including facial recognition technology, Instinet LLC analyst Harry Curtis said in a research note.
Full story at CDC Gaming Reports.
5. MGM National Harbor tops Maryland casino revenue list
Just five months after it opened, MGM National Harbor emerged for the second straight month in April as Maryland’s top revenue-producing casino, according to figures released by the state.
MGM, which topped $50 million in monthly revenue for the first time in March, generated $49.9 million from slot machines and table games in April, the Maryland Lottery and Gaming Control Agency reported.
Maryland Live! was not far behind at $45.3 million. But the Hanover casino’s revenue fell 21.6% compared to April 2016, when the state had five casinos instead of the current six.
6. Cleveland casino continues to lag
Jack Cleveland Casino’s revenue continues to lag, as revenue dropped 8.3% in April 2017 compared to April 2016.
Ohio’s three other casinos saw only a slight dip or increase compared to the prior year, according to the Ohio Casino Control Commission.
The downtown Cleveland casino has maintained its table game revenue, but slot machine revenue continues to decline. While the casino brought in $12 million in slot revenue in April 2013, slot revenue this April was $8.6 million.
7. Topping off West Coast’s largest casino resort
A topping-off ceremony for an addition at Pechanga Resort and Casino, an Indian casino in Temecula, Calif., will make the resort and casino the largest on the West Coast.
The ceremony featured the pouring of the final 710 tons of concrete into the upper framing — 14 stories high — of the new hotel tower that will house 568 rooms and suites.
“When our resort expansion is done in December, guests will be able to enjoy 13 restaurants, 1,100 rooms and suites, a 4.5-acre pool complex, a two-story luxury spa, lots of event space, a beautiful championship 18-hole golf course and a casino floor that’s bigger and better than any on the West Coast,” said Edith Atwood, president of the Pechanga Development Corp.
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