The Casino Industry and how their future is shaping up

The Casino industry in many countries of the world is going through a serious crisis and many businesses of this type slowly or steadily are driven to extinction, and since they turn into “carcasses” businesses, leaving hundreds unpaid workers and large debts both to the public funds and in the social security funds of workers, sending them to unemployment, while creating large debts to their suppliers.

This situation that has emerged over the last fifteen years in the casino industry is mainly since most businessmen of this type of business drastically underestimated the power of the internet and especially the power of its online services.

by Thanos S. Chonthrogiannis

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The Casino Industry and how their future is shaping up
Photo by Author: Pobrien301, licensed Public Domain

The causes of the problems

In fact, with the appearance of online gambling, casino players disappeared from the casino tables and literally “married” their mobile phone and more generally any type of mobile device that has internet access betting and gambling from home and from anywhere else.

The immediate result of the online betting services was to urbanise betting, multiple players participating with smaller amounts away from casinos by increasing the profits of online betting companies and even further emptying the casino tables.

If the country hosting such businesses as casinos is going through a serious financial crisis creating long-term conditions of shrinking the disposable income of its citizens then casino businesses are among the first companies they will experience very difficult times and as citizens in these macroeconomic situations drastically reduce their number of visits to casinos. In this case the viability of the company depends on the size of its debts in relation to its shrinking revenues.

The result of these developments is to close businesses and shrink the industry to a few but powerful players creating very strong oligopoly situations.

Strategies to maximize casino profits

Casinos should change their overall strategy. More specifically,

1. Casinos should turn most of their business into an entertainment and wellness business, with expensive and high-level restaurants, integrate expensive shopping malls into their business, make hotel facilities the standard tourist hotel complexes in which they will receive, among all other high level, conference tourism throughout the year.

2. Casino revenues derived from betting should make up 25% of the company’s total revenue.

3. The aim of the casinos should be to attract customers with a very high wallet who will sit at the tables of the “black-jack”, roulette and “poker” respectively. In order to achieve this, the services offered by these companies should be in their entire spectrum very high both before and after the players sit at the tables of luck.

4. At the same time, casinos should eliminate from their businesses the so-called slot machines or VLTs. The reason is that players who will want to test their luck in these machines within casinos will be limited and have a small wallet blurring the high level of expensive services of these businesses.

Players who will want to test their luck on these machines can do so well via the internet. In recession times, financial recession visitors to casinos limit their “luck” only to slot machines or VLTs. The reason this is happening is that these games allow higher profit recycling for their customers and users.

In other words, the customer and user of these games plays more time and with less money but also with less risk. But the casino earns less than these customer actions. That’s why VLTs should be kicked out of casinos.

5. The ideal location of casino businesses is to be in cosmopolitan places to pull tourists from abroad. And if their location is not cosmopolitan, companies themselves should create it through their most high-profile services.

The road to transform these casino businesses in which one can find what one wants and desire their heart is long but not endless. It wants boldness on the part of entrepreneurs but also an immediate adjustment to the socio-political and economic conditions that is formed each time by finding these businesses ready from each side to face the challenges.

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