LETTER TO THE EDITOR:

Old casino model would work in slump

Michael Davis, Las Vegas

Saturday, Feb. 14, 2009 | 2:02 a.m.

With some of the largest casino operators in town suffering serious financial woes, it may be time to reexamine the Las Vegas casino business model. For the past 25 years the town has drifted from the old school “the casino is king” model to the “let’s squeeze as much return out of every square foot as possible” model.

As someone who worked 20 years in hospitality accounting, and who now makes a substantial part of my income from gambling, I think someone needs to inform these corporate accounting foot soldiers that the only way to fill those empty rooms and restaurant seats is the return of a much more frequent and liberal comp policy where rooms and food and beverage outlets are loss leaders instead of profit centers, a model where the gambler — as opposed to the casual tourist — is customer No. 1.

This financial crisis may be just what is needed to figuratively pry the last nickel from these hedge funds and financiers’ hands and return it to the gambler — not the club kid or condo investor — who built this town. I know it is a lot to ask, but we can only hope, and this time I’m betting against most of the new school of developers and financiers.

Discussion: 3 comments so far…

By Teaser

2/14/09 at 7:13 a.m.

Suggest removal

When I compare the corporations that run Vegas to the mob that once ran Vegas, I observe that at least the mob had a sense of ethics.
By Scott

2/15/09 at 8:54 a.m.

Suggest removal

Very well said.

I moved here in 91 and still miss when everything was cheap, but good.

It would surely bring some people here if they knew they could get a $5 dollar lunch.

Sadly, most of the places that offered anything cheap are gone.
By kramer

2/15/09 at 1:09 p.m.

Suggest removal

It is a shame that the bean counters cannot read these above posts and learn something!