Casino Enterprise Management

When it comes to gaming markets in 2014, all eyes likely will be focused on the trio of states that have rolled out online wagering. Their successes and failures will be under the microscope as analysts, legislators, gaming operators, lobbyists, opponents and others try to determine the true potential of the fledging U.S. online gaming market.

This month’s article is based on a question we received from a gentleman who recently relocated to Las Vegas from Rio de Janeiro. He stated that he is looking to get into the gaming industry and was educating himself by absorbing as much as he could from gaming journals. He asked a compelling question that got us thinking: In the coming years, who will squeeze more value out of the gaming industry—the manufacturers, game designers or the casinos?

The UGA index for the period ending Oct. 31, 2013, was up 10.6 percents equentially to 320.3 from 289.7 at Sept. 30, 2013. As an illustrative example, if an investor bought $100,000 of the index on Sept. 30, 2013, the investment would hypothetically be worth $110,563 on Oct. 31, 2013. On a year-to-date basis, the UGA Index is up 70.1 percent.

MLife, Total Rewards and Grazie are just three examples of player clubs currently operated by casinos in Las Vegas. Over the past decade, these clubs have become a staple of casino operations. To the casino patron, the premise is simple: The more you play, the more benefits you earn, e.g. free merchandise or discounts on rooms, shows and food. In reality, however, these clubs are complex marketing tools that...