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December 3, 2009

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Comments by user: AFL

Posted on: Post-9/11 cuts may have gone too far

While Mr. Feldman makes some valid points, to suggest that slot revenues are not of vital importance to the financial health of major Strip properties is quite a stretch (and surprising to hear). I would remind him of the incredibly high profit margins produced by the slot dept. (even after marketing expenses). Do fine dining and high-end retail operations put-up profit margins equal to that of slots? Is the magnitude of these non-gaming profit contributions anywhere near that of slots? I think not. Further, you must look beyond revenues, as it is profit that matters in the end. As for non-gaming profits, hotel operations are by far the major contributor, especially when you have thousands of rooms. Aside from that, no department rivals the slot department in terms of profits.

Perhaps the use of the term "casino" is the issue here. We are using it in reference to all gaming areas, as opposed to the entire property. Anyway, just my two cents.

Respectfully,
Anthony F. Lucas, Ph.D.
co-author of the article in question, "Fear and Managing..."

(Suggest removal) 5/22/08 at 11:39 a.m.

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