Casino Industry

February 4, 2011

Casino Industry Case Analysis

Introduction

The casino industry dates back to 1931 when gaming was legalized in Nevada. In 1976, Atlantic City became the second state to legalize gambling and since then has spread to many states to include river boat and Native American gambling. By 2008, Nevada and Atlantic City made up one-third of total revenue for casinos in the United States. Though Nevada remains the highest revenue bearing casino state, river boat or water borne casinos have had the largest growth rate.

The casino industry is one of the most regulated and taxed industries in the country. State level government depends on the substantial amount of tax revenues received from the industry, making it a vital part of the economy. These revenues go towards funding state and local programs such as education, youth and senior services and public safety(US Commercial Casino Industry). The industry is responsible for creating jobs, spurring the growth of local businesses, and increasing tourism.

The Las Vegas Casino industry has experienced a decline in revenue since 2008, aided by a slight downward trend in visitors. This entertainment/tourism based business took a dip in the 1990's when Las Vegas took on a campaign to make it a more family friendly vacation destination. They rebounded making the shift back to adult entertainment, but are now feeling the effects of the global crisis and increased competition. We will take a look at the environment, fall off in revenue and the nature and problems with the industry's strategy. Lastly we will lay out recommendations for survival and growth of the industry.

Strategic Analysis

By examining the strengths, weaknesses and threats of the industry(Business Balls), we gain a clearer understanding of not only the environment, but the direction and position of the business. Though normally opportunities would be included here, they represent areas of growth and are better suited to solutions...