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twitterBoyd chief: Recession forcing Vegas back to roots
Amanda Finnegan
Gaming executives discuss the state of the industry Wednesday at the Global Gaming Expo at the Las Vegas Convention Center. From left to right: American Gaming Association President and CEO Frank Fahrenkopf, Jr., Boyd Gaming President and CEO Keith Smith, Aristocrat Technologies Americas Division President Nick Khin, Isle of Capri Casinos President and Chief Operating Officer Virginia McDowell, Boldt S.A. Director Guillermo Gabella and his interpreter.
Thursday, Nov. 19, 2009 | 2:05 a.m.
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Beyond the Sun
The recession is forcing Las Vegas to return to its roots as a more value-oriented destination, and that’s not a bad thing, Boyd Gaming President and Chief Executive Keith Smith said.
“The town has now evolved back to its original roots,” Smith said Wednesday at the Global Gaming Expo. “I think the industry will continue to evolve and refine itself and eventually find a norm between value and high-end.”
And Smith, whose company scuttled its Echelon resort project in August 2008, said he foresees little new construction on the Las Vegas Strip in the near future.
Isle of Capri Casinos President and Chief Operating Officer Virginia McDowell said Isle of Capri has fared better than other operators because of cost reductions the company put in place in 2007.
“We had to react relatively quickly to reduce our overhead and become leaner and meaner and more flexible,” McDowell said.
Like other regional operators have pointed out during this year’s conference, McDowell said Isle of Capri’s diverse locations benefited the company. The Missouri-based casino company operates 14 casinos across the country. Some regions were more insulated than others, McDowell said.
Unlike most casino operators, most of the major suppliers entered the recession with fairly strong balance sheets, said Nick Khin, president of Aristocrat Technologies’ Americas division. To help operators weather the storm, Aristocrat has been offering more leases, payment services and financing options.
Khin also touched on emerging trends in gaming, including network gaming, products that remember their customers and games that reward players for their loyalty, he said.
But with the addition of new technology, costs have increased and operators aren’t buying. Khin said slots stay on casino floors for an average of 25 years without replacement.
“As long as prices continue to stay high, it will elongate the replacement cycle,” Smith said.
McDowell and Smith both said that when the capital is available, most operators would rather put it back into the customer experience with renovations or expansions.
“Aristocrat is not predicting a significant improvement in 2010. Unfortunately, the third quarter of this calendar year was probably the weakest quarter for operators and suppliers for quite some years,” Khin said. “We are taking a very captious approach in regards to 2010.”
Discussion: 35 comments so far…
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Hopefully "going back to the roots" will mean loosening the slots and not ruining the individual machines by deleting the features that make them enjoyable. I love the Caveman Keno slots, but to be at their most enjoyable, those machines must have the variable speed feature and the sound in place. With no sound for a hit number, and with a machine playing far too fast, Caveman Keno is no fun. Wise casino managers will confer with regulars on each type of slot machine to figure out why that particular game is enjoyable, and then proceed to adjust each machine to provide the options that the players want. Plus of course, loosen the damn machines. Losing quickly is no fun. Losing slowly with some reasonable chance of a small profit is still a great draw for Las Vegas.
Citing the "roots" of Las Vegas is a misleading and easily manipulated statement. Which "roots" are we talking about? The late 1800s before LV was incorporated? The period when Block 16 had prostitution? The period of glamour during the Rat Pack days? The 1970s-1988 pre-Mirage stagnation?
It's one thing to offer "value" but the truth lies in the definition. In the 1980s and before, Mercedes-Benz offered value by selling well-engineered cars that were pricey but lasted forever; today, Wal-Mart thinks value is found in low priced items sold in a dreary, service-free environment.
Perhaps "going back to its roots" may also include "de-corporatizing" the strip. MGMM and Harrah's may find that selling off some properties to individual owner-operators is a good move for everyone. The corporations can reduce their monstrous debt load and new O/Os can inject a bit of common sense and vibrancy into the LV experience. An owner/operator will, by definition, be more involved in his/her property and will be able to adjust more quickly to changing circumstances than the current crop of faceless, arrogant corporate suits that still want to sell $100 hamburgers and $1,000 bottles of booze!
Well, f**king, Duh!!!! It has taken over 6 years of arrogance of these
to see the light?
Once upon a time long, long ago, a person could sit down to a $1, single deck blackjack game and have a little fun. Losing wasn't that painful because there were terrific deals on food and rooms - not to mention the great sport of people watching.
That's all quite dead now. And Las Bugsy died with it, being replaced with fake pyramids, fake Venitian canals, and even a fake NYNY sprang up to oogle the rubes who came to town for a little "sin".
Looks like the real rubes are the Wynns, Sheldons, and others that took away what LV was about and replaced it with such garish stuff nobody wants to come anymore.
One-by-one they will belly up and then some smart person will build a retro-Vegas casino like the ones they tore down and become a phenomenal success.
hey who cares about what these executives for those inferior properties have to say,any of the major operators attend this expo
This article and the people are really stupid. Until they get back to the roots of gambling it's not going to work! Get back to the old slot machines...SINGLE Play + drop the credit receipts. This means IGT and Bally slot machine companies dropping the new?? technology, which gamblers Hate. Until then, Forget it !
Greed killed Vegas, political corruption killed Vegas.
Lived here for two decades and watched as gaming "boomed", and Vegas stagnated. Listened to the rhetoric as to the woes of having a reasonable tax on gaming and gold. All the while the majors in Vegas were more than willing to pay much higher taxes in other states and abroad, and seeming make a profit.
They took profit from Vegas and invested it in political corruption, indian gamming, china and took the one thing vegas had, it was sin city and now you can play and lose in all but two states.
Nevadan's let this happen and it continues. My favorite was "growth paying for growth", more like future growth will pay for today's growth and then.....no more growth!
Now Vegas is stuck. Bad schools, inadequate roads, almost no mass transportation (not even to and from the freaking airport, the hub of tourism) this city had the wealth to be great and we let it be spent everywhere but HERE!
When I hear the statement getting back to the roots offering value, I need to see it happening first.. So far that statement is just spin. I want to see the return of the cheap rooms, practically free food, and fair table games. Loose slots.. Show us the value first Mr. Keith Smith!
The good old days was back before I moved here when you could sit down loose a couple hundred over time have some drinks and be happy about what a great time you had. Now it is all about the puff daddy's and how fast they can fleece my money and send me back home broke. Not fun anymore. It is no longer an experience where everyday blokes are treated like royalty, now I just feel raped.
its all an illusion, just like disneyland or universal. the suits harvested what their greedy egos could get and left the citizens holding the bag.
4 way and muti-play keno put the Caveman to shame. I wouldn't bother to travel across the country if they didn't have them... and that from a former 21 and dice dealer.
Over night stay at Hooters during week is now only $20!?
Of course, such fraudulent pricing claims don't include government's skimming hand known as taxes, fees, etc. which likely double your total - but such is indeed evidence of affordability.
Week day parties at Hooters anyone?
: )
"The company was formed to buy the former Hotel San Remo and it reopened as Hooters in February 2006. Since then, the downturn in the economy has hurt results at Hooters and it's offering midweek rates as low as $20."
Ref:
http://www.lasvegassun.com/news/2009/nov...
dipstick:
True. The only difference is that at Disneyland you can't lose your life savings in less than 15 minutes.
(Which the highly paid executives at the top definitely know and lovingly relish...)
I love the VINTAGE VEGAS HOTEL/CASINO idea, by an individual owner operator. Totally agree! (The New Stardust???......)
A few points above really summed it up. Vegas is gambling, that is the roots. If I am going to go to Vegas for a few days, I know I will lose $500 to $1000. Ok, no problem there. But what is killing Vegas now is that that $500-$1000 doesn't last as long as it once did. Us gamblers do not mind losing the money, we want it to last as long as it can and to get something back in return. Something small - free buffet, a damn T shirt, oh and here is an idea, how about a "hello/how are you" or "where are you from" by a casino host.
Seems like the problem is, if you are not prepared to drop $10,000, the casino is not interested in you. The casinos bet and lost. They put their faith in big spenders instead of the meat and potatoes of people like me. They insisted they rather make millions on a few thousand people versus making thousands on a million people. Think about that last statement - because that is the core of the problem. Until that is reversed, things are not going to change.
These casinos need to do some due diligence with their loyal fans. Especially the slot players. Problem is, the casinos feel it would be beneath them to do so.
"You want a free buffet or some show tickets"? "I'm sorry, you dont seem to have enough player points just yet". Unreal.......
The mentality has to change. It has to change from the top, so it will funnel down to all employees, and be visible to the patrons/public.
When I go to Vegas, I stay at Sams Town. I know it is not the glitz or glamor of the strip, but hey, thats just a drive away. When I go to Sam's Town, I am greeted by name by the table dealers and the comps are great. The atmosphere is totally different. They treat me great. And oh by the way, I am a very small player, very small. But here I am talking highly about Sam's Town and have sent several friends to Sam's Town. Interesting how that works, huh?
domenicricci1@gmail.com
Boyd Group, the last joke in gaming.
yes, I play some table games. Once upon a time played most of the options, now you have to look at the table rule; 6/5 not me, not ever...no more Stations.
Last week I stayed downtown at Main Street, bet a few NCAA football games at the Plaza, and played blackjack at Main Street while watching the game with the most money riding.
Five dollar table, started with $100.00 and it grew so after an hour I raised the stakes an average of $25 a hand and played at that level for about two hours. Last hand I played $225, and lost (bummer) but I walked out with $600.00, a $500.00 gain.
Next morning went to the bit boss for a stinking comp to the cheap buffet and was told I had an average play of $3.00 a hand for 2 hours? No comp.
Tonight I am going to the Golden Nugget, you suck BOYD!, Stations and the entire strip!
Here is a perfect example.
2zero only wanted a breakfast comp. The pit boss ran his play via a computer. There is not collaboration between the bosses and the dealers. Imagine if the casino would have given 2zero a comp???? He would have a connection with the casino and maybe got to know the pitboss on a first name basis. He would have told others about the experience. He would have returned to the casino.
The casino missed a huge opportunity here. But they dont get it!!!! SHAME!!
You commenters need to drive your Oldsmobile 98's down to Laughlin and have a 1970's good time. Play some $2 Blackjack and single payline 25 cent slots. I have been watching my first season of VEGA$ dvd set this week and think that Las Vegas from 1978 looks much like Laughlin does now.
A "slow" Las Vegas in 2009 is still busier than any year before 2005.
$3.99 prime rib dinner, $1.00 Bud Light, $5.00 all you can eat buffet, free lounge show's. This is an example of what needs to happen for casino's to bring people back.
Well, the Strip is where you get stripped. As they say, what's in a name?
Years ago we had a package air/hotel/free meals for $118.00 at the California. Free Champayne at Wesward Ho. Now we don't go to Vegas anymore. Indian Casinos offer 100% more for your money. Vegas went to big and to expensive for the average Joe.
One example of why locals hate strip casinos and especially the hateful MGM/Harrahs monopoly: I was at the MGM Grand visiting a friend on Labor day. Low stakes player that I am, I decided to play the new Jaws penny slots. I put in 20 and quickly found out that the bloodsuckers programed the machine to only Max bet and all lines played! My 20 quickly disappeared. Played the same machine at Southpoint and selected any bet I wanted and any line and was able to enjoy myself for 20 minutes. Like so many I know the end result will be empty wallet but the snobs at MGM dont even want low stakes players like me to have a good time for a few minutes and just want to suck up money like a vacum. Still havent gotten that the whales are gone and not coming back and that as long as they turn noses up at the great unwashed, their casinos will become ghostowns. Keep treating your players and employees like trash MGM/Harrahs. Reality will finally catch up to your ivory tower dream world.
2zero : Just a little info here for ya bud, Boyd doesn't own Station (yet anyway) and if you go over to The Orleans, you will see that they are still holding on quite to a bit of the Value oriented offering. I enjoy my stays there and am treated as a valuable player, and by no means am I a high roller. I like to play the five dollar slots, craps and some roulette. My play is tracked on my card and the rooms are always free, as well as my meals. Boyd is really the only company in town who gets it..
According to Wiki, Boyd owns Main Street Stations.
http://en.wikipedia.org/wiki/Boyd_Gaming...
THEY JUST DONT GET IT FOLKS!IT SHOWS THAT THEY FAILED BOTH READING,AS WELL AS MATH.THEY HAVENT READ ANY COMMENT CARDS,OR I'LL BET THEY HAVENT EVEN BEEN ON THEIR OWN FLOOR IN MONTHS!YOU CAN WALK IN ANY CASINO ON THE STRIP,AND TASTE THE DOOM AND GLOOM!
Las Vegas is no different then a lot of other struggling company's today.
Take Dell for an example. They knew what the customer wanted, 1.service and 2.quality. If you take care of the first 2 the money will follow. They are struggling today because they lost focus.
Las Vegas has handed over an industry to MBA's are academically smart and socially stupid. Unfortunately corporations are bean counters who do not know human beings other then what they read in a book in college. Las Vegas was built by real people, not some math whiz in the back of house.
I agree with most of the comments. I've been a yearly visitor to Las Vegas for many years and recently moved here. I've noticed that each year the strip became more and more expensive and that I enjoyed it less and less. Now that I live here, I only frequent the local casinos and rarely visit the strip. When you have to struggle to find a $5.00 BJ table on the strip you know something is amiss. How many people can afford to gamble $1000.00 a day plus pay huge rates for the hotel, food and shows? Not too many these days! I know part of the problem is that these newer casinos cost millions/billions of dollars to build and they need to pay their expenses and employees, but the "average guy" can't afford to foot the bill. Give us "reasonable" room rates, looser slots, more comps, and affordable food/shows and we'll be happy to spend some time in your resort!
Really? From Boyd? I was just at the Orleans with people who were in town for G2E. They were playing Keno, and were allowed one drink ticket for every five cards played. The drink tickets said that they could be exchanged for a domestic beer or a rail drink and that three were necessary for an imported beer or other cocktail. Pretty damned stingy.
My favorite part was that Sam Adams and Tenaya Creek beers weren't considered domestic beers, even though both are made in the U.S.
What they meant was premium and non-premium, but still. It cost $4 to buy a Heineken at the bar, but you had to play at least $15 worth of Keno cards to get one "comped."
I realize their business model is to separate fools and their money, and they do it quite efficiently. But for some reason, it still isn't good enough. It used to be that only the Strip casinos would gouge their customers, but the local joints are doing it now, too. And now this blowhard with Boyd says we need to return to our roots when his company continues to piss on the legs of its customers while insisting that it is, in fact, raining.
To me, "roots" mean affordable dining, gaming and entertainment options, coin drop slots and their noise, slots along the wall leading to the buffet, and personable service.
Today we have computerized gaming programmed by bean counters wanting to rake in every single penny in order to pay off the casino operators' billions of debt dollars spent to build mega-priced resorts to cater to to the ultra-rich.
Now, they're paying for their follies and expect the rest of us to foot their bill.
Isn't this what we all want ? LasVegas back to its glory days. You are writing an inner man, full day agenda of this change. 1000 pages should tell the right road and direction.
When was the last time the pit boss gave a comp dinner? Back in the day it was accustom for frequent locals to get these types of things. Now its how many points you have on your players card until I comp you. Freaken ridiculous.
I am a small player, 25-50 cent video poker , my wife plays penny slots. We go to Gold Coast, a Boyd property often. Get 200 points (over 50 yrs old) on Wed you get free buffet and keep the points,. anyone can get 250 points on Monday and get free buffet and keep points. I can sit at a 5 cent vid poker machine and cocktail waitress always come by and ask what I want. Sit at the bar and friendly bartender is right there. I think the payout tables are better at Gold Coast, they even have some 100.7% full pay Dueces wild.I was at the Orleans after a hockey game sat down with $20 playing poker was serving me Maker's mark whiskey. I have offers for free hotel rooms already , online thru the players club they have, and not because I am a big player, it is just their promotions.
I also go the the Sahara and play $1 BJ now and then, and they have some 9/6 JoB video poker also. Again, cocktail waitress always serving. You have to search out your deals and what suits you. I have walked thru many casinos and some just have crappy pay tables so I don't play there.
The Gold Coast is a casino that's very close to the Strip but still offers deals you can't find on the Strip. To the contrary, the Rio. I like the Gold Coast, too. The atmosphere at nights is totally Vegas-style and that's what I like about it. Too bad the pool is squeezed into the space room. But it's ok to sit down for 1 hour or so and get some day light before returning to the gaming action.
From Switzerland
I love the fact that out-of-town visitors are taking a "just say no" approach to the Strip and turning more and more to locals' casinos. The Strip facilities MUST take a "locals" approach, because out-of-towners ARE taking their Oldsmobiles to Laughlin AND to the Tunicas and Shreveports as well.
Gaming is coming back to Texas within the next 10 years, too much demand regionally.
Phoenix is literally surrounded by Indian tribal casinos which are pretty much packed every night, even in this recession. They're giving out free sets of luggage as part of their comps. Better comps than in a supermarket, let alone a Vegas strip casino. From what I hear the Southern California Indian casinos are just as packed.
And Las Vegas needs to start marketing to Phoenix as a locals market, especially since they are widening US 93 and building the Hoover Dam bypass. One of my favorite things to do is to take the US 93 road trip and play slots at Cannery or Suncoast.
The customers will ultimately do the talking and drive Las Vegas (and by extension tribal gaming, because it does whatever the Strip does) back to the value proposition.