Casino Enterprise Management

Editor’s Note: Four students in the Casino Enterprise Management-sponsored HM 492 course offered by the Department of Tourism Management for the College of Business at The University of Southern Mississippi-Gulf Coast recently traveled to Nevada to conduct comprehensive marketing research and analysis on Golden Gate Hotel and Casino, located on Fremont Street in downtown Las Vegas. Led by Professor David Paster, Lisa Cartwright, Dana Shankland, Erin Schmermund and Michelle Bruce spent Jan. 11–18 compiling data for this case study, meeting with Golden Gate owner Marc Brandenburg, Marketing & Promotions Manager Heather Sobczak, Vice President of Marketing Scott D’Angelo, and other key staff members.
The students also met with Trent Allen Parks, national account executive for the Palms Casino Resort; Howard “The Librarian for Gamblers” Schwartz, owner of the Gambler’s Book Club; Ron Aller, a top marketing and operations independent consultant; Douglas Florence CPP, director of NICE Gaming Security; Luigi Mastropietro of Central Credit/Global Cash Access; George Stamos, April Augustine, and Bruce Rowe of Bally Technologies; Marc Weiswasser of Navegante’s CasinoRecruiter.com; Steve Cyr with H-Six hosting group; Dr. Curtis Love and Dr. Gail Sammons at the University of Nevada, Las Vegas; and Dr. David Schwartz, author of Roll the Bones.
The following is excerpted from the comprehensive case study that the students provided to Golden Gate’s management following the completion of their course.

Established in 1906, the Golden Gate is proud to be Las Vegas’ most historic hotel/casino and the smallest hotel on Fremont Street, with only 106 rooms. Our guests can enjoy the intimate atmosphere of a historic hotel and then step outside our front doors into the grandeur and excitement of the Fremont Street Experience, with dazzling free light shows and special events. Our shrimp cocktail started a Las Vegas tradition over 40 years ago, and still is named “Best of Las Vegas” year after year. We offer great accommodations, plenty of gambling action and excellent food in a warm and friendly environment.
– Golden Gate Hotel and Casino

Modern casino gambling in southern Nevada originated in downtown Las Vegas and was legalized in 1931. When the first third-wave themed mega casino resort, The Mirage, opened in 1989 on the Las Vegas Strip, people and construction started significantly moving away from downtown Las Vegas. As a result, tourism in the downtown area decreased.

The city made an effort to revitalize the area with the opening of the $80 million Fremont Street Experience in 1995. According to the City of Las Vegas Office of Business Development, the Fremont Street Experience attracts, on average, more than 21 million visitors each year. IRS operations also moved to a downtown building the same year, which served as a catalyst to create demand for additional businesses in the area, especially during daytime hours. Many high-rise condominium projects have also been under development, which has helped transform downtown into a livable neighborhood.

The growing popularity of Las Vegas as a destination has led to an increase in visits from gaming, leisure and business customers. According to the Las Vegas Convention and Visitors Authority, annual visitor volume has experienced a steady increase over the past five years, from 35.5 million in 2003 to 39.2 million in 2007. Approximately 87 percent (34.1 million people) of all visitors gamble while in Las Vegas, and 38 percent of those visitors gamble downtown (12.96 million people). Non-gaming expenditures per trip by Las Vegas visitors increased at a compound annual growth rate of 7.1 percent, from approximately $695 in 2003 to an estimated $979 in 2007. These trends indicate not only a growing demand for Las Vegas, but also a growth in visitor non-gaming spending.

While the Las Vegas gaming market has maintained a steady growth pattern over the past five years, the downtown area struggles to see year-over-year improvement and has even suffered a decline in some years. According to the Nevada Gaming Commission, Las Vegas casino properties generated $10.9 billion in gross gaming revenue in 2007, compared to $10.6 billion in 2006, an increase of 2.1 percent; the downtown area increased 0.4 percent. The downtown area generated $632.9 million in gross gaming revenue in 2007, compared to $630.3 million in 2006.

Because the downtown area attracts budget-conscious tourists, the implosion of the Stardust and New Frontier, which attract the same type of customers, could have contributed to this customer migration. Chart 1 shows the gross gaming revenue trend for the past five calendar years ending Dec. 31 for Las Vegas and Las Vegas downtown from 2003 to 2007.

On a gaming fiscal year basis, according to the Nevada Gaming Commission, Las Vegas downtown casino properties generated $624.3 million in gross gaming revenue in 2007, compared to $641.9 million in 2006, a year-over-year decrease of 2.7 percent; non-gaming revenue in the downtown area decreased 13.4 percent. The downtown area generated $476 million in non-gaming revenue in 2007, compared to $549.9 million in 2006. Chart 2 shows the gaming and non-gaming revenue trend for Las Vegas downtown for the past five fiscal years ending June 30.

On an aggregate per-unit basis, slot win per unit per day has shown a steady increase over the past five years, while win per table per day has demonstrated volatility. It is important to point out, however, that the number of slot units has sharply decreased, from almost 16,000 in 2003 to about 12,000 in 2007, while the number of table units has remained relatively the same. Chart 3 shows these trends on a calendar basis.

The supply of hotel rooms in the downtown Las Vegas area has decreased from 10,452 in 2003 to 9,635 in 2007, while average occupancy level and daily rates are 89 percent and $54, respectively. Chart 4 shows these trends on a fiscal year basis.

Golden Gate’s Customers
The majority of Golden Gate’s customer base ranges in age from 40–69; the largest representation of that group is 50–59 years old, comprising 27 percent of Golden Gate’s total customer base. The second largest age group, at 22 percent of Golden Gate’s customer base, ranges in age from 40–49 and is followed by age group 60–69, which reflects 20 percent of Golden Gate’s customer base.

The majority of Golden Gate’s non-West (i.e., California, Nevada) originating customer base comes from the Midwest, followed by the South, East and international, respectively.

Chart 5 represents the percentage of total rated theoretical casino win per trip in relation to total rated guests at Golden Gate.

The Competition
Las Vegas casinos epitomize the word “competition.” Downtown Las Vegas, once on its way to becoming nothing more than a bump on the timeline of the city’s history, is now vivacious once again. The entity is competing with the ever-changing, ever-growing Las Vegas Strip. The Fremont Street Experience has given downtown Las Vegas a new edge and allows people to realize the opportunity and diversity downtown Las Vegas has to offer. The area has a variety of casinos that can meet every customer’s needs. Customers who like small, quiet casinos can find them downtown; patrons who like large, exciting casinos can also find them downtown. The diversity of downtown creates competition within the area.

Golden Gate Casino faces competition on and around Fremont Street. Within a one-mile radius, Golden Gate has 14 competitors. These alternatives range from casino-only properties to full-fledged resort properties. Those locations are: Binion’s, California, El Cortez, Fitzgerald’s, Four Queens, Fremont, Gold Spike, Golden Nugget, La Bayou, Main St. Station, Mermaids, The Plaza, The Vegas Club and The Western.

Golden Gate Property Analysis
Golden Gate is located at the top of Fremont Street and it is best known for the Original 99¢ Shrimp Cocktail. The property falls into the small size category, with 345 slots and 15 tables, for a total of 435 gaming positions. It also houses the smallest casino-associated hotel in Las Vegas, with 106 rooms. Golden Gate does have a leased sports book and a players club. Golden Gate was privately and solely held by Marc Brandenburg until April 2008, when 50 percent of the entity was sold to Desert Rock Enterprises, a company with a stake in Riviera Holdings and that owns the Las Vegas minor-league baseball team, the Area 51s.

Restaurants
Bay City Diner: Classic diner fare that is open 24 hours, serving breakfast, lunch and dinner.

San Francisco Shrimp Bar & Deli: A value priced, quick-serve style snack bar that is open for lunch and dinner. A live musician plays piano in the deli seating area for ambient entertainment.

The Players Club
Golden Gate provides many forms of customer care. The players club tenders value-added opportunities. When players initially enroll, they receive free play and a promotional item. The players club also provides direct mail for tracked players every month, including more points, free play and free meals. For non-locals, the Golden Gate offers discounted room rates, free play and free meals on a bi-monthly basis. The casino also offers special birthday and anniversary promotions. To enhance direct marketing efforts, Golden Gate sends bi-weekly e-mails to customers who have “opted in” to the e-mail mailing list.

The players club is comprised of three tiers. The first tier is a “base tier” that offers:
•     Usage of points for gifts, dining or play (500 points=$1)
•     10 percent off dining with points pay
•     10 percent off hotel with points pay
•     Eligibility for monthly “free gift” and promotions
The second tier is “Gold” and is achieved by earning 1,000 points in 12 months. Advantages of the Gold tier are:
•     Usage of points for gifts, hotel, dining or play (500 points=$1)
•     20 percent off dining with points pay
•     20 percent off hotel with points pay
•     Eligibility (based on play) for monthly free offers, “free gift” and promotions
The top tier is “Platinum” and is achieved by earning 25,000 points in 12 months. Advantages of the Platinum tier are:
•     Usage of points for gifts, hotel, dining or play (500 points=$1)
•     40 percent off dining with points pay
•     40 percent off hotel with points pay
•     Eligibility (based on play) for monthly free offers, “free gift” and promotions

Reinvestment on theoretical win does not differ by tier level (i.e., higher tiers do not “earn” points at a faster rate), but the coin-in-per-point-earned ratio is competitive with the immediate market. The club currently uses the average daily theoretical (ADT) to segment groups, but in the near future, the club is hoping to send out specific offers based on recency, frequency and monetary spend (RFM), geographic proximity, and seasonal patterns (e.g., snowbirds, annual convention attendees).­­­­­­­­­­­

The players club has been active for less than one year, and its relative operational success is currently judged on a month-to-month basis. A local (in-state) player stays active in the database by playing at least once per month, and a non-local (out-of-state) player stays active playing at least once per year. With the club averaging 2,500 sign-ups per month from July 2007 through January 2008, the database is growing at a healthy pace. [Note: Two researchers with this case signed up for the players club and received the promotional item, but did not receive e-mails or direct mail offers within two months. This was due to the club’s cost-benefit based decision to not offer immediate correspondence with individuals providing less than $25 ADT on their first visit.]

Direct Mail
For its direct mail materials, Golden Gate staff members design the mailer and send it out to a printer company. After printing, the materials go to Golden Gate’s external mail house where data hygiene methods are applied (e.g., NCOA, LACS, NIXIE). Golden Gate’s in-house system is maintained by the casino’s information technology manager. Golden Gate offers a bi-weekly mailer for locals and a bi-monthly mailer for non-locals. The direct mail offers contain some combination of the following: $5, $10 or $25 in free slot play; a two-, three- or four-night free stay; a tangible promotional item (e.g., free dish set), drinks, dinner for one or two, or deli meal; and buy one, get one free offers.

Critical Self-Evaluation
Golden Gate should address several issues in order to leverage a profitable marketing scheme.

Foremost, the casino should evaluate its employee training to assure consistency of service. Subsequently, the employee handbook for all employees, including those in gaming, food and beverage, and hotel operations, should be reviewed periodically and updated as needed.

The themes and decorations used in the casino and hotel should be assessed to ensure that guests maintain the perception that Golden Gate desires.

In the casino, management should review the profitability of table games and machines to determine if the correct floor mix has been implemented. Management should also determine whether the casino is collecting its fair market share of gross gaming revenue (based on positions).

SWOT Analysis of Golden Gate
Strengths
•     Historic value—a draw for tourists interested in the history of Las Vegas
•     Location—Golden Gate is at the head of Fremont Street and The Fremont Street Experience’s canopy starts at the casino
•     Recent sale of 50 percent of Golden Gate’s holdings to Desert Rock Enterprises to ensure funding for capital improvements
•     Strong San Francisco theme that can be incorporated into nearly every aspect of the casino and hotel
•     A Hollywood connection—television shows such as CSI and films such as Pay It Forward have been filmed there
•     A fresh managerial staff that is open to new ideas and concepts
•     Competitive food quality and prices in both the diner and deli

Weaknesses
•     Golden Gate is miniscule compared to the behemoths of the Las Vegas Strip—its small scale limits the number of amenities that can be offered
•     Age of the building—renovations must be done carefully to maintain historic and structural integrity
•     Insufficient employee training has led to inconsistencies in service
•     Prior lack of capital funding—until recently, Golden Gate was a sole proprietorship and revenue for redevelopment was limited
•     Low pay scale for employees contributes to high employee turnover
•     Lack of technology utilization in comparison to the rapidly expanding technology of point-of-sale (POS) and customer relationship management (CRM) integration at other casinos
   
Opportunities
•     Linked marketing and heavy foot traffic provided by the Fremont Street Experience
•     Historic preservation groups to assist with renovations while maintaining historical integrity of the building
•     Corporate sponsorships could help Golden Gate bring its name and reputation to new markets
•     Fun books (coupon books) emphasizing unique traits of property that may be distributed to feeder markets
•     No other real front-runners on Fremont Street—opportunity to gain a larger portion of the market
•     Focal point of the Strip (Las Vegas Blvd.) is moving north, toward Fremont, with the development of Encore, Echelon and The (Elad Group) Plaza
•     As hotel rooms on the Strip become more expensive, there is an opportunity to capture more of the displaced lower- budget market
•     Offers a stronger, player-oriented gaming experience1
•     Does not alienate the increasingly dismissed low-roller
•     An ability to capture auxiliary and ancillary non-gaming revenues
•     Provide greater efficiency to the gaming floor by incorporating automatic shufflers and muckers as well as presenting higher vigorish carnival games
•     Increase reasons for the adoption and utilization of player’s club usage, and take advantage of promotional cost associated tax advantages2

Threats
•     Several larger, better-funded casinos on Fremont Street (the Golden Nugget is nearby and reminiscent of the larger Strip casinos)
•     No draw for conventions due to lack of space downtown
•     Lack of economy of scale as a single property without centralized corporate purchasing ability
•     Potential gaming tax increase currently under consideration by Nevada legislators

Property Challenges
Golden Gate faces several major physical plant and business challenges. The size and age of the building are both significant challenges for the casino. Real estate in Las Vegas is at a premium, and Golden Gate’s location does not allow for expansion; consequently, the floor plan must be designed and allocated to maximize profits. Also, the building itself is more than 100 years old, so any plans for renovations or remodeling must take into account the age of the building, wiring, plumbing, and other structural and architectural factors.

The location of the casino is another challenge. Being on a major street corner is good, but it is at the top of Fremont Street. Walking traffic is coming only from Fremont Street, and downtown visitors may not “make it” to Golden Gate if they start at the far end.

Labor and licensing are two of Golden Gate’s major business challenges. With respect to labor, efficiency is a vital factor. Unions are commonplace in Las Vegas casinos. While unions are important for employees, they may create barriers to efficiency. Golden Gate should address these potential barriers and plan accordingly.

Improving the Image of the Casino
A long-term goal for Golden Gate should be to look for ways to improve its image. One method to improve Golden Gate’s image in the area is to encourage employees to be civically active within the community. If locals see that Golden Gate employees not only provide gaming and entertainment, but also help out in their community, they will be more likely to frequent the casino. Golden Gate should also consider sponsoring local clean-up days or adopting a roadway.

Another means for Golden Gate to improve its image would be to partner with University of Nevada, Las Vegas (UNLV) and other institutions of higher learning. UNLV and other schools are essential to the area, and any casino that takes an active role in the interest of higher education will be looked upon positively. Golden Gate should consider sponsoring a scholarship for a student majoring in gaming or local history. The casino might also consider hosting students as interns. Both of these actions will further serve to place Golden Gate in a positive light in the community.

Realistic Goals and Objectives
It would not be pragmatic to expect Golden Gate to redefine itself overnight. For Golden Gate to make an effective and lasting change, specific long-term and short-term goals should be set and revisited often. Well-defined, realistic goals and expectations with specific due dates will help Golden Gate progress forward and create itself a new identity in the downtown Las Vegas market.

Based on data provided by Golden Gate, the casino is only generating about 45 percent of the gaming revenue that it should be (based on gaming position-determined market share). (See Charts 6-8.) A realistic objective for Golden Gate would be to at least generate its fair share, or 2.9 percent, of downtown gross gaming revenue.

Action Plan for the Property as a Whole
•     Ensure consistency of service through a set of standard operation procedures (SOP) for all employees
•     Revisit the mission and vision statements to ensure that they are current and accurate
•     Assess current pay scale and adjust market wages
•     Leverage the elements of the brand to drive more business (e.g. “Original 99¢ Shrimp Cocktail,” Las Vegas historical site, intimate atmosphere, Fremont Street Experience)
•     Update website to ensure it is user-friendly, and add more features that would allow guests greater interactivity, such as making online hotel reservations and checking players club point balances
•     Management should attend weekly or bi-weekly meetings; monthly P&L meetings should also be implemented to hold department managers accountable
•     Since the Fremont Street Experience screen is sponsored by LG and Golden Gate would like to put flat-screen TVs in its hotel  rooms, the casino may want to consider contacting LG for an advertising-exchange contract
•     TV networks might be interested in a This Old House-like program in which the casino and its rooms are renovated while preserving historical quality (This Old Casino, perhaps?)
•     To practice causal marketing, link restoration program with a charitable association (and the network) to donate a percentage of future revenues to a not-for-profit organization
•     Run specials (such as drink specials, match play, etc.) during the Fremont Street Experience, when customers usually run outside to watch the show, to maximize shift differential yielding
•     Enlist historic society or UNLV history department to create and maintain a historic Las Vegas display in lobby (or multiple displays throughout the property), focusing on how Golden Gate fits into Las Vegas history
•     Utilize players club data in non-traditional ways (i.e., data mine) to target customers for incremental visitation

Action Plan for the Hotel
•     All rooms should maintain industry standards
•     Target a lodging market that is willing and able to spend money in both the hotel and casino
•     Bundle room, food and beverages into an all-inclusive style package
•     Maintain 24-hour housekeeping to enhance customer service
•     Theme floors such as Russian Hill, Knob Hill, Chinatown, Fishman’s Wharf, Cable Cars, etc., to give hotel a more authentic San Francisco feel
•     Add flat-screen TVs to the rooms and contract with a “pay TV” operation (e.g., LodgeNet Entertainment™) to provide an additional revenue stream
•     Add free Wi-Fi Internet for hotel guests or contract with a third-party ISP to create an auxiliary revenue stream for the hotel
•     Place hair dryers and ironing boards in all rooms for the convenience of the hotel guests
•     Remove the difficult-to-maintain coffee pots from the rooms so guests will purchase coffee from the diner instead
•     Offer brand-name products from sponsors in rooms (e.g. Sealy mattresses, Linens-N-Things bedding, Bath and Body Works soap)
•     Couple with a nearby fine-dining restaurant to offer guests more culinary experiences (e.g., Andre’s)
•     Develop a lodging (time-share style) membership club or explore the condo-tel paradigm
•     Install a POS system that will provide for universal tracking and computation of player equity

Action Plan for the Casino
•     Sponsorships for table game felts, proprietary slots and giveaways
•     Develop corporate sponsors for players club sign-up and prizes (i.e., if a player signs up, he or she will receive a cross-branded gift card, for example $10 at Bath and Body Works)
•    Implement text message solicitation
•     Increase e-mail promotions
•     Configure gaming floor plan to maximize revenue through machine mix, placement, etc.
•     Continue to monitor slot play
•     Ensure table tracking accuracy
•     Revisit and, if necessary, revise comp policy from item to value based
•     Place attractive girls dressed in flapper-style dresses outside the doors to entice guests to come inside with a compelling call to action
•     Shift differentiation through creating lower minimum wagers during slow traffic times
•     Consider installing electronic table facsimile games
•     Create a positive environment for beginners through game  lessons, offering Gaming International WIN Cards (www.wincards.com), and allowing dealers to serve as tutors

Action Plan for Food and Beverage
•     Enact a regular employee training schedule to improve customer service
•    Increase communication with slot club regarding comp tickets
•     Seek out corporate sponsorships for liquor (e.g., Captain Morgan’s Spiced Rum for Cable Car cocktail)
•     Improve consistency of wait staff service
•     Maintain food quality
•     Add dining tables outside of Bay City Diner on Fremont Street to create a bistro feel to entice guests to come inside
•     Have an authentic San Francisco-branded coffee cart on Fremont Street that sells high-quality beverages and retail items such as logo coffee mugs
•     Update cocktail uniforms to a more flattering flapper-dress style to match casino theme

The Golden Gate is a boutique property with enormous potential. To bring the inherent promise of this niche enterprise to fruition, it is imperative that all stakeholders commit to a defined ethos. Management and employees alike must fully dedicate themselves to a feasible and comprehensive paradigm comprised of viable strategies, objectives and tactics.

Special Thanks

    The students of TM 492 learned untold volumes of information during our 9 days in Las Vegas.  We are so grateful to our many hosts and “teachers”, without whom this study would not have been possible:

•     Golden Gate Casino and Hotel, Las Vegas for our room accommodations, breakfast, and those deliciously zesty shrimp cocktails. 
•     Mark Brandenburg, Heather Sboczak, Scott D’Angelo, Lon Jerome, Wes Fisher, Joel at the front desk (for greeting us with such great enthusiasm and being our personal photographer), and the rest of the staff at Golden Gate for allowing us to use their property as our classroom.
•     Casino Enterprise Management for sponsoring all of our transportation and providing an outlet for publication.
•     Ron Aller for taking time out of his busy schedule to show us what he knows best.
•     Doug Florence for hosting us in his home, sharing great stories and arranging a tour of a property surveillance room.
•     The Fabulous Trent Allen Parks for lunch, the Palms grand tour, and making sure that we got to dance.
•     Luigi Maestropietro for proving Milton Friedman’s rule.
•     Howard Schwartz for welcoming us into the Gamblers Book Store and sharing information from his personal files.
•     Dr. Curtis Love and Dr. Gail Sammons of UNLV for further education and career advice.
•     Dr. David Schwartz and the library staff at UNLV for their time and resources.
•     Steve and Tanya Cyr for lunch and taking some time away from  “Whale” hunting to talk with us minnows.
•     Hertz Rent-a-Car, for their patience and understanding of the 4 girls that packed for 14.
•     Zowie Bowie at Red Rock Station for our VIP seats and their personal USM tribute at their great show.
•     Bruce Rowe, George Stamos, April Augustine, and the staff at Bally Technologies for the behind-the-scenes tour of their facility.
•     Marc Weiswasser and The Navegante Group (casinorecruiters.com) for the great career advice.
•     Ted Gottlieb of Gaming International, Inc. / Win Cards for helping develop a table games marketing strategy.
•     Joey Schmermund for providing transportation to and from New Orleans airport.
•     Dr. Alvin Williams, Dr. Tony Henthorne, Linda Jordan, Joyce Lyons, and the rest of USM’s faculty and staff for their support of our project.
•     Anyone we inadvertently forgot to specifically thank… Thank you!

Footnotes
1     The May 2008 issue of Anthony Curtis’ Las Vegas Advisor reported that, “according to Stanford Wong’s Current Blackjack News, only three casinos in Las Vegas now deal a single deck that pays 3–2 on naturals and they’re all downtown: El Cortez, Four Queens and Western. For a while, Four Queens had a sign out front that read ‘We don’t deal no stinkin’ 6–5 blackjack’” and that the historically hardcore “Binion’s dice tables are again dealing 10X odds.”
2     As reported in The May 2008 issue of Anthony Curtis’ Las Vegas Advisor, “It’s true, the price of the shrimp cocktail has been raised to $1.99. There was time to make a switch at No. 1, but we didn’t. Here’s why. Although the price has been increased, you can still get the 99¢ deal simply by showing the GG’s (Club 1906) players card. The club is free and it’ll take you an extra few minutes (once) to join. Plus, currently you get a free deck of cards and 10X points when you sign up. As of now, we see no reason to switch the Golden Gate shrimp from the top spot.”

Hospitality Management 492: Excerpted Travel Log, January 11–19, 2008

Friday, January 11
After a four-hour flight from New Orleans to Las Vegas, us Tourism Management 492 students and Prof. Paster gathered our luggage and caught a bus to the rental car terminal. The first SUV was not large enough to hold our luggage and us (four women on a nine-day trip means lots of luggage), so we exchanged it for a larger model, which was also too small. Our third SUV, the largest vehicle Hertz offered, worked out and we headed downtown, stopping at Hard Rock Casino for dinner at the Pink Taco. We finally arrived at the Golden Gate Casino at 1 Fremont Street in downtown Las Vegas, at around 12 a.m.

Saturday, January 12
After breakfast at Golden Gate Casino’s Bay City Diner, we met Ron Aller for a historic marketing context tour of downtown Las Vegas. Mr. Aller is a top independent consultant for marketing and operations and has more than 14 years of casino marketing experience. As we toured each downtown property, he gave us their backgrounds and his own ideas on what could bring more business to the downtown area.

At 12 p.m. we met with Heather Sboczak, the slot club manager of Golden Gate Casino. She provided us with comp tickets for the diner and deli and discussed some basic marketing strategies for the property.

Our evening adventures began at the Red Rock Casino, where we saw Zowie Bowie at Rocks Lounge. After that, we went to the Ghost Bar Lounge and Rain at The Palms Casino, while Prof. “I’m an Old Man” Paster went across the street for soup. Yep, soup. On a Saturday night in Las Vegas. After we got our fill of dancing, Professor Paster came back to pick us up. All danced out and filled with soup, respectively, we went back to our hotel and went to bed.

Sunday, January 13
We met with Heather Sobczak at noon for a tour of the Golden Gate, including the different-sized rooms, rooms with views and a few rooms with no view. We also discussed what could be done with the different rooms in terms of amenities.

At 1 p.m. we met with Scott D’Angelo, vice president of marketing for Golden Gate Casino, to discuss different marketing concepts for the Golden Gate and our market analysis. We learned about Golden Gate’s demographics, reinvestment strategies, percentages of the market targeted, source of largest competition, comp returns, direct mail, how player points work and what the casino is hoping will help target a new market.

At around 8 p.m. we set out on a walking tour of the Strip, visiting Paris Las Vegas, the Bellagio, New York New York and the MGM Grand. This was to expose us to some of the different properties that Las Vegas has to offer, the different themes that each casino has, and also give us marketing ideas for the Golden Gate. At Paris, we split a handmade crepe to round out our calorie count for the day to a cool five digits—good thing we opted for the walking tour!

Monday, January 14
At 10 a.m. we met with Doug Florence, a security and surveillance specialist, who spoke about the new technologies and advancements in surveillance systems. He also warned us to be aware that one never knows who might try to cheat the casino or hotel out of money.

At 1 p.m. we met with Howard Schwartz, owner of the Gambler’s Book Shop, to discuss new textbooks titles, Las Vegas history, and articles about the Golden Gate he thought would be helpful in completing our study. We also met “Clem,” a notorious sports bettor who revealed to us the secret of Bugsy’s real killer.

At 2 p.m. we met with Wes Fisher, the vice president of non-gaming at Golden Gate. We got to ask him a series of questions relating to the food and beverage and hotel areas of the property.

Later that evening we had the chance to tour the surveillance room of a downtown property. We learned the different ways that the property uses new technology to track everything, such as switching from analog to digital video, how to catch cheaters, and what to watch for when watching a game.

Tuesday, January 15
We met with Dr. Curtis Love and Dr. Gail Sammons to discuss UNLV’s history, tourism and gaming undergraduate and graduate programs. We also discussed the potential for jobs in the Las Vegas market. Later that morning, we toured the archive room at the UNLV library, which contains gambling-related books and texts from around the world, some that date back to the 16th century.

At 11 a.m. we met with Dr. David Schwartz, a professor and historian at UNLV and curator of UNLV gaming archives. Dr. Schwartz is the author of several important books related to gambling, including Roll the Bones.

At 1 p.m. we met with Trent Parks, a national account executive for N9NE Group. Mr. Parks is as hungry for exposure as Lindsay Lohan and likes to see his name in print, so… Trent Parks, Trent Parks, Trent Parks.

Then we toured The Palms, including the Pearl concert venue and a high-roller suite. Lesson: Marketing to the right audience at the right time is essential in any business.

That evening, we went back to The Palms, this time to visit The Playboy Club and Moon Nightclub. A few minor dance-related injuries later, we headed back to Golden Gate to get some rest. The Prof. was already there, sound asleep.

Wednesday, January 16
At 10 a.m. we took a tour of Bally Entertainment with marketing’s incomparable George Stamos and April Augustine. We observed the gaming machine production process, from concept to market, and were introduced to the facility manager, who advised us on the importance of operations management. We watched workers produce machines in the production area and also got a sneak peak at machines in the prototype room. We were able to “sample” some of Bally’s newest machines, but don’t worry, we were not gambling.

While in the prototype room, we met with Bally Vice President Bruce Rowe, who emphasized the importance of networking (making contacts within the industry) and finding a mentor in addition to the importance of remembering to occasionally step back and take a look at the “big picture.”

At 1 p.m. we met with Marc Weiswasser, senior vice president of Navegante, to discuss resume building and job searching. He covered the various ways to emphasize our individual qualities and objectives.

At 3 p.m. we met with Marc Brandenburg, owner of Golden Gate Casino, for a discussion on the variety of issues involving the casino’s marketing strategies, including branded t-shirts. Mr. Brandenburg asked for our opinions on which of several t-shirts might appeal to his target market, then we moved on to discuss the Golden Gate’s famous 99¢ Shrimp Cocktail. Mr. Brandenburg wanted our opinions on increasing the price or decreasing the serving size.

At 5 p.m. we started filling out competitive shopping questionnaires on the casinos surrounding the Golden Gate. While completing our questionnaires, we were able to enjoy the Fremont Experience lightshow as well as browse multiple vendors.

Thursday, January 17
At 10 a.m. we met with Luigi Mastropietro, director of relationship marketing at Global Cash Access, for a quick tour of the facility and a lesson on the company’s business model. (Ironically, GCA has a no-service-fee ATM in its lobby.)

At 2 p.m. we met with Lon Jerome, an IT specialist, to learn about new technologies that customers could soon expect at Golden Gate. We discussed many issues involving database systems, new surveillance systems, point-of-sale, and other technologies that would soon be implemented and integrated.

After a long week of work, we decided to really enjoy the nightlife, so we headed to Tryst nightclub at the Wynn Casino. Prof. “How Does Hef Do It?” Paster stayed behind, turning us loose on Las Vegas’ public transportation system. We rode “upstairs” on one of The Deuce double-decker buses, which offered a great view (and a new perspective) of the Strip.

Friday, January 18
At 11 a.m. (bright and early for us) we met Steve Cyr, a Las Vegas high roller host and subject of Whale Hunt in the Desert, by Deke Castleman. He took us on a tour of the Bowling Suite at the Hard Rock Casino and Hotel, which features a regulation-size bowling lane, full bar, several bedrooms and bathrooms, and a full-size living room and kitchen.

After the tour we met with Mr. Cyr’s wife Tanya for lunch and to talk about job strategies in the Las Vegas market and working in such a high-energy atmosphere. The Cyrs gave us an honest portrayal of the city and told us how it is so easy to get caught up in the Las Vegas lifestyle.

At 2 p.m. we had our final meeting with Golden Gate management to discuss final marketing strategies and our next steps in the study.

That evening, Prof. Paster joined us for dinner, had a slice of apple pie, and presumably, went to bed. To put it simply, he was just danced out. We visited LAX nightclub at the Luxor Casino, but we called it an early night. We would never tell Prof. Paster this, but we were sort of danced out, too.

Saturday, January 19
We all met for breakfast at the Bay City Diner, climbed into our huge SUV, and then headed to the Las Vegas airport. Back in New Orleans, Erin Schmermund’s husband picked us up and drove us to the University of Southern Mississippi. We had a great trip full of learning and more than a bit of fun. Prof. Paster was just happy that he did not lose any students—and that none of us cried.