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February 11, 2012

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LOOKING IN ON: GAMING:

Hotels rein in risque advertising campaigns

Friday, Nov. 20, 2009 | 2 a.m.

Before the recession, ads for Las Vegas resorts appealed to a desire for frivolity and conspicuous consumption with taglines such as, “Some fantasies just don’t work anywhere else,” “Everything in moderation? Yeah, right,” and “Parents gone wild.”

Though ads from the Las Vegas Convention and Visitors Authority still remind thrill-seekers that “What Happens Here, Stays Here,” Las Vegas hotels have toned down their advertising in recent months to reflect a new era of caution.

Take online ads for Bellagio, including “Escape to the ultimate relaxation” and “Bellagio will transport you into another world of elegance you so richly deserve.”

Marketers are choosing their words carefully, mindful that travelers can either less afford a getaway or that they are affluent but feel guilty about spending money during the recession. In fact, some hotels in Las Vegas have turned warm and fuzzy, turning to images of embracing couples instead of tourists brandishing a cocktail in one hand and a pair of dice in the other.

At the casino industry’s premier convention and trade show this week, casino marketers traded notes on how to position their hotels at a time when Vegas’ traditionally hedonistic schtick doesn’t fly.

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Still smarting from the fallout of President Obama’s comments about how bailout recipients should avoid trips to Las Vegas, the leaders of various casino giants met with more than 50 members of Congress and Obama Administration officials in September to impress upon political leaders the message that casinos are good corporate citizens that create jobs and generate much-needed state and local taxes.

High on their list of talking points, besides green energy and immigration reform, was the industry’s unified opposition to the Employee Free Choice Act, a bill supported by organized labor that would allow employees to form a union if a majority sign cards in support.

This so-called card check process, which companies may now reject in favor of a secret ballot election that unions say hampers efforts to organize, has enabled the Culinary Union to organize most of the hotels on the Strip over the years. That’s not the source of the gaming industry’s concern.

Members of the American Gaming Association, which organized the two-day meet-and-greet, primarily object to a provision in the bill that would force companies into binding arbitration to reach a contract. (Gaming companies have since declared the the meetings with political leaders a success.)

Without this provision, unions say, companies can delay the process of negotiating a contract until demoralized employees give up and vote to decertify the union before an agreement can be reached.

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Competing legislation in Congress to legalize and regulate Internet gambling in the United States probably won’t be voted on this year or next as Congress wades through health care reform and other issues, experts said during this week’s Global Gaming Expo.

Some form of legalization may simply be a matter of time, if only because governments are cash-strapped and some online casinos are eager to be taxed in exchange for regulatory approval. Yet observers wonder whether efforts to reap tax revenue from Web casinos will be in vain.

Though Britain legalized online casinos a few years ago, gambling Web sites remain concentrated elsewhere, in exotic, low-tax locales such as Alderney, Isle of Man and Costa Rica, for example.

U.S. casino giants or offshore companies may choose not to operate here because of higher taxes, Internet gambling advocates said. Offshore gambling sites — especially those that continue to allow Americans to gamble in spite of the Justice Department’s view that Internet gambling by Americans is illegal, or refuse to be licensed here once regulations are passed — might then have a competitive advantage over U.S. companies that pay taxes here.

Also, online gamblers don’t want Uncle Sam knowing about their winnings and might choose offshore sites rather than regulated sites that would track player winnings for tax reporting purposes, they said.

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