Chapter 11

Gaming and Casino Hotels

Hospitality Today
An Introduction

Eighth Edition
Early History of Gaming

• The first recorded accounts of gaming date back to

early Chinese dynasties in 2300 B.C.
• Both the Old and New Testaments mention
gambling. Indeed, Roman centurions gambled for
Christ’s robes at his crucifixion.
• After the Crusades of the twelfth and thirteenth
centuries A.D., gambling spread throughout Europe.
• The elegant casinos of Baden-Baden and Monaco
were built in the mid-nineteenth century and
became a favorite of European royalty and the
aristocracy.
Slide 2
Gaming in the United States

• Soon after Columbus’s arrival, Portuguese and

Spanish sailors brought dice and cards with
them to the New World. In leisure moments,
they also raced their horses, wagering on the
results.
• Early American colonists used lotteries to fund
worthy causes, such as municipal projects and
universities.
• By the early nineteenth century, major ports
such as New Orleans had established reputations
as favorite gambling destinations.
Slide 3
Gaming in Nevada
• In 1931, Nevada’s state legislature decided to
make gaming legal as a way to spur economic
recovery during the Great Depression.
• By 1935, gaming clubs had begun to appear,
first in Reno, and later in Las Vegas.
• With the opening of The Mirage Hotel & Casino
Resort in 1989, the era of the mega-destination
resort began. Other mega-hotels would follow,
and today Las Vegas is the home of twelve of
the twenty largest hotels in the world.

Slide 4
Riverboat and Offshore Gambling
in the United States

• By 1997, six states had legalized riverboat

gambling, giving it a firm foothold.
• Large tour boats and even a few small, obsolete
cruise ships offer gambling “cruises to
nowhere.” These boats typically sail a few
miles offshore before they open their casinos,
and they usually stay out for several hours.
• State laws concerning these gambling
operations vary considerably.

Slide 5
Indian Gambling
• With the passing of the Indian Gaming Regulatory
Act (IGRA) in 1988, Congress made it legal for
Native Americans to open casinos on their
property in states where gambling was allowed.
• The purpose of the act was to promote tribal
economic development, protect Indian gaming
from organized crime, and establish an
appropriate regulatory body.
• Today Connecticut, Minnesota, Florida, and many
other states have major casino operations on
reservations.
Slide 6
Macau, China

• Macau is the only place in China where

gambling is legal; it draws visitors not only from
that country but from all around the world.
• Macau has the world’s two biggest casinos, the
Venetian Macau and The City of Dreams Resort,
and has surpassed Las Vegas as the largest
international casino gambling destination.
• Gambling revenue in Macau is seven times
greater than in Las Vegas.

Slide 7
Casino Hotels

Casino hotels can be thought of as casinos with

some or all of the following attached:
• Guestrooms
• Restaurants
• Shopping arcades
• Theme parks

Slide 8
Revenue Streams of Casino Hotels

• The casino was long the predominant source of

revenue at Las Vegas hotels, but in recent years
there has been a trend to diversify.
• In 1989 the Mirage Hotel & Casino Resort set a
new standard for casino hotel development by
making the hotel itself an attraction through
architecture, design, and entertainment.
• Since then, restaurants, shopping malls, and
meetings business have increasingly been
emphasized as sources of revenue.
Slide 9
Organization and Management
of Casino Hotels

• In casino hotels, the hotel operation is

subordinate to the gambling operation.
• Instead of being in complete control of the hotel,
the vice president of hotel operations reports to
a higher resident authority who usually holds the
title of casino hotel president. There is also a
vice president of casino operations who rivals the
hotel manager in importance.
• In addition, other vice presidents also make a lot
of decisions that, in a typical hotel or resort, are
usually handled as part of hotel operations.
Slide 10
Food and Beverages at Casino Hotels

• While food and beverage operations are

extremely important to any resort operation, in
casino hotels they play an added role.
• They make gaming convenient by ensuring that
players don’t have to leave the premises in
order to get any kind of dining experience.
• In some casino hotels, the food and beverage
department is operated as a separate division
under its own vice president.

Slide 11
Service Demands at Casino Hotels

• Service operations in casino hotels are unique

because both entertainment and food provide
opportunities for winners to celebrate and losers to
console themselves.
• Because of all the services they provide, casino
hotels are even more labor-intensive than other
kinds of hotels.
• Elaborate and extensive entertainment and multiple
dining facilities with all-night service mean that the
number of employees per hotel room may be three
or four times higher than in conventional hotels and
resorts.
Slide 12
Popular Casino Games

TABLE GAMES
• Baccarat
• Blackjack
• Craps
• Roulette
SLOT MACHINES

Slide 13
Slot Machines
• Slots are by far the most profitable games for a
casino.
• To begin with, the percentage of money the
casino keeps is usually high.
• In addition, slots are the least labor-intensive
of all games, requiring no employees except to
maintain the machines, make change, and
empty and refill the hoppers.
• There are also a high number of bets made
every hour on a slot machine.
Slide 14
Casino Terms

• Markers • Drop box

• Cashier’s cage • Table drop
• Pit • Slot drop
• Pit boss • Table win
• Fill slips • Hold percentage
• Credit slips

Slide 15
Casino Employees

• Croupiers (dealers)
• Floor people
• Pit boss
• Shift manager

Slide 16
Preparing for a Casino Career

• Students who are interested in a career in

gaming can get specialized training at gaming
institutes.
• Gaming institutes are private schools that teach
the skills needed to fill jobs such as croupier
and casino manager.
• Career tracks in the rooms, food and beverage,
and sales and marketing divisions—all leading to
management positions—are also possible at
casino hotels.
Slide 17
Casino Customers

• Grind (low-end) players

• Middle-range players
• High-end players
• “Whales”

Slide 18
Personal Representatives

• Some high-end players have “personal

representatives” who approach the casino’s
managers to negotiate terms before the players
arrive.
• Terms include how much money the casino
expects the client to play, how long the casino
will hold the client’s markers, and other terms.
• A personal representative usually receives a
commission of 10 percent of the money the
casino wins from the client.
Slide 19
Three Guest Markets

• High-end players
Gamble $5,000 or more per visit

• Middle-range players
Gamble $3,000–$5,000 per visit

• Low-end players
Gamble modest amounts,
usually at slot machines

Slide 20
Casino Junkets

• Casino junkets are partially or completely paid

trips to a casino that are sometimes advertised
or organized by brokers.
• Guests generally agree, in advance, to play a
certain amount of money over a certain period
of time—usually four hours a day. Casino
personnel monitor the action carefully.
• These junkets often lure first-time visitors who
may then be invited back based on their
observed performance.
Slide 21
Slot Clubs

• Many casinos in Las Vegas have formed slot

clubs that cost nothing to join.
• Members are issued electronic cards, which
they enter into slot machines before starting to
play. The cards record the volume of play, and
players are awarded points based on how much
they bet.
• These points can be exchanged for food,
beverages, guestrooms, or gifts.

Slide 22
Three Types of Casino Controls

• Accounting controls
• Equipment controls
• Human controls

Slide 23
Accounting Controls

Accounting controls include sophisticated

formulas to calculate expected profitability:
• By the game
• By the table
• By the shift
In addition, there are numerous credit and cash
control procedures that are carefully followed.

Slide 24
Equipment Controls

Equipment controls involve equipment such as:

• Electronic surveillance cameras
• Safes
• Lock boxes

Slide 25
Human Controls

• Human controls are found at every staff level,

from pit bosses to security guards.
• There are on-site human inspectors monitoring
every part of the casino and every transaction.
• Electronic monitoring also takes place.

Slide 26
Casino Regulation

Casino regulation usually dictates:

• The casino’s size
• The types of games permitted
• The investigation and licensing of employees
• The hours and days of operation
• Marketing activities
• The type and size of public space

Slide 27