Casino Enterprise Management

We’ve always more or less taken it for granted that regulators should release casino revenue and payback percentages to the public. After all, revenue is the basis for tax payment calculations (or per capita payments or program funding in tribal jurisdictions), and payback percentages provide some type of rough odds information to the gaming public.

Each of us has certain dreams. We might dream about winning the lottery, paying off the mortgage or going on vacation. We also have certain expectations—more realistic expectations—especially for the machines on our floors. We expect to maintain a certain hold and to obtain a desired level of daily win. Our customers have certain dreams and expectations, too.

Recently, I polled a group of casino executives concerning questions they had regarding table games operation and management. I was amazed at the number of replies I received, as well as the different inquires into topics regarding the management, operation and protection of live games. Following are a few of the questions I received.

With an economic downswing comes many difficult questions. Are layoffs and downsizing the keys to minimizing overhead costs? For many gaming companies, one thing is clear in the current economy: Expansion is out of the question. Advanced Gaming Associates is not one of those companies. What’s the secret? Ask founder Tony Tomasello.

When it comes to software and IT, this is what your clients really want to know … and how to give it to them, of course. Here's the top 15 lists from both the vendors’ and the operators’ perspective  of what they want, and what they don't.

After submitting a casino evaluation report to the targeted operations executive committee, I explained why I advised my client to start hitting soft 17 on all of the blackjack games. With a few simple calculations, drop, win and hold percentage figures are all you need to decide whether a blackjack or roulette rule change would be revenue friendly.

The term “free play” has been a part of the casino industry for as long as I can remember (which is a long time), but today many industry executives, owners and operators still hold back on their decision to offer free play to casino customers due to their lack of understanding of how it is applied and what it means for the bottom line.

Few playing fields are level. Regulators face a particularly daunting task in trying to ride herd on an industry that can almost always outgun them in terms of resources brought to bear on a given issue. Even with today’s unemployment rate, it takes a special blend of technical skill, limitless patience and tolerance for self punishment to sign on for the thankless job of gaming regulator.

If you consider tips as nothing but a dealer-centric bonus for a job well done, consider this correlation: more tips = more revenue. I contend that tips have hardly anything to do with the quality, appearance or cordiality of the dealer. They are, in fact, correlated directly with volume. I believe it is important that we give serious consideration to this critical component of revenue generation.

With the gaming supply and demand curve finally leveling off, it might be time to look back at successes of the past to determine our direction for the future. Buddy Frank argues that the basic human qualities that define entertainment and amusement have remained constant; it is our challenge to see if technology can restore, revive or enhance some of them.