Casino Hotels

Casino Hotels

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide short-term lodging in hotel facilities with casinos on the premises. Major companies include Caesars Entertainment, MGM Resorts, Las Vegas Sands, and Wynn Resorts (all based in the US); as well as Crown Resorts (Australia); Genting Group (Malaysia); and Galaxy Entertainment Group, Melco Crown Entertainment, and SJM Holdings (all based in Hong Kong).

COMPETITIVE LANDSCAPE

Demand for casino hotels is driven by consumer income growth and tourism travel. The profitability of individual companies depends on efficient operations and effective marketing. Large operators have the financial resources to make significant investments in facilities and amenities; they also have strong name recognition and may enjoy cross-marketing opportunities. Smaller establishments can compete by serving small markets and offering special attractions. The casino hotel industry is highly concentrated: the 50 largest companies account for about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products and services offered by casino hotels include gambling machine products (about 55% of industry revenue) and room or unit accommodations (about 30%). In addition, table wagering games were about 15%. Other products also include alcoholic beverages and admission to live performing arts.