Gambling

Gambling

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate gambling facilities or offer gaming activities, while some companies also operate hotel facilities. Major companies include US-based casino operators Las Vegas Sands, MGM Resorts, and Wynn Resorts, as well as Galaxy Entertainment Group (Hong Kong), IGT (UK), SJM Holdings (Hong Kong), Tabcorp (Australia), and William Hill (UK).

COMPETITIVE LANDSCAPE

Demand for gambling is driven by consumer income growth and state spending. 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 efficient computer operations; they may also enjoy cross-marketing opportunities. Small gambling facilities can thrive by catering to local residents, who may not be able to afford travel to such gambling centers as Las Vegas or Atlantic City.

PRODUCTS, OPERATIONS & TECHNOLOGY

Gaming operators mainly provide a place or a means to play games of chance, where the odds of winning favor the "house." Popular casino games are slot machines (slots); video poker; and table games such as roulette, baccarat, blackjack, and craps (dice). The industry's products get revenues from gambling machine products (more than 70%), followed by table wagering games (10%), and lotteries (less than 10%). Other revenue sources include pari-mutual sports gambling, meals, snacks, other food items, and nonalcoholic beverages.