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Casino Market Research

Made by Anna Artsibasheva, Henrik Blomqvist
by

Anna Artsibasheva

on 24 October 2013

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Transcript of Casino Market Research

Casino Industry
in the U.S. market
Made by Anna Artsibasheva and Henrik Blomqvist
Table of contents
Market structure
Market characteristics
Pricing strategies
Market segmentation
Differentiation
Advertising
Strategic interaction
Game theory
Regulation and laws
Market structure
5 types:
Charitable gaming

Casino gaming

Lotteries

Native American gaming

Pati-mutuel wagering
Monopolistic competition
Entry / exit barriers
Entry barriers:
Capital investment
Regulations
Exit barriers:
Employee contracts
Hotel and casino buildings
Spectrum of goods
Gaming activities:
table games
electronic gaming machines
random ticket games
Non-gaming activities:
food and beverage serving
hotel accommodation
retail
entertainment activities
Price Elasticity
Price elasticity of demand:
close to 1
Income elasticity of demand: from 1.4 to 1.9
Timing factor:
in short run - inelastic
in long run - unit elasticity
Substitutes and complementary goods
Close substitutes:
online gaming, lotteries, betting, etc.
Far substitutes:
sightseeing, theater, cinema, etc.
Complementary:
food and beverage sales, spa, hotel operations, etc.
Externalities
Negative:
gambling addiction
affecting neighboring business
Positive:
creating employment
contributing to tax system
R&D and Technology
Online gaming



Computer-based table games
Price discrimination
Pricing strategies
Market Segmentation
Vertical / horizontal differentiation
TV advertising
Product placement
Print advertising
2nd-degree price discrimination:
minimum buy-in and stakes
Bellagio Bobby's room
vs.
2$ minimum bet tables
Versioning
(20$, 50$, 100$ minimum buy-in)


Mix bundling
(food&beverage serving + gaming)
2 casino strategies:
Pricing strategy --> vertical
(reducing costs, lower quality)



Differentiation strategy --> horizontal
(creating distinct image, luxury services)
Due to very saturated market:
Persuasive
Creating a distinct image
Emotional connection with customer
Typical type of advertising for upscale market casinos
Advertising in movies:
Caesars Palace in Hangover movie
Using the image of the movie:
"Hangover" slot machines in 37 main casinos of Las Vegas
Advertising in the magazines for an upscale market
Strategic interaction
Innovation:


Internet gambling


TITO


Multi-component interaction
Game theory
The shrinking Atlantic city
vs.
The growing markets in Pennsylvania & Delaware
Competition good for revenues?
Regulations / Laws
Complicated system of federal laws
The tribal casino issue
Thank you for your attention!
Differentiated products (566 casinos)

Large number of companies (70+ companies only in US)

No business controls the market power (top 3 companies: Las Vegas Sands, Wynn resorts, IGT)
vs.
vs.
Bellagio
Caesars
Mohegan Sun
Hard rock
Tropicana
Excalibur
MGM Grand
Full transcript