Online Casino Edition – Casino News News about online casinos and gambling

September 14, 2013

Gambling Revenues in Maryland Soaring

Filed under: Casino — Tags: , — OCE News @ 11:19 am

The state of Maryland made a bet that casino gambling would pay off for them. It seems as if they were right, even though their lottery sales are down.

For the first time in some 16 years, traditional lottery revenues for Maryland have fallen by nearly 2 percent. These results were released by the state’s Lottery and Gaming Control Agency. During the same period of time, casino revenues for Maryland have more than tripled. This is new record level for the state.

According to the state records, Maryland had a net gain of about $830 million in gambling taxes. This represents an increase of 27 percent over the previous fiscal year. The state lottery added about $545 million to the state’s general fund; the state casinos were able to add $284 million to the Maryland Education Trust Fund.

What may surprise some people is that over three-quarters of the total casino tax revenue that came in came from Maryland Live, which is located at Arundel Mills mall. The casino opened in June 2012.

Director of the Lottery and Gaming Control Agency, Stephen L. Martino, is reported to have hired a research firm to prove the hypothesis “that when you open the third-largest [commercial] casino in the United States squarely between your two most heavily populated metropolitan areas, there’s going to be some movement in discretionary gaming dollars from the lottery to the casino.”

According to Martino, lottery retailers around the vicinity of Maryland Live started to report losses keno sales and instant-ticket sales almost immediately after the casino went live. Before the casino had opened, lottery sales and revenues in the area had steadily increased for each fiscal year since 1996. Martino is said to have warned officials that the lottery and its 15-year growth streak was going to falter once casino revenues started playing in the mix.

Martino said recently, “Taken as a whole, what we operate and what we regulate, we are pleased with the way the fiscal year ended. The fact there was a lottery decline is not anything we are happy about. This is just a new normal, and we are going to see decreases and there is really not much we can do.”

It has been reported in the past that Maryland is aggressively planning to expand casino gambling, will be adding 24-hour operations, will also be adding live-action table games, and it looking at more properties. To date, a fifth casino is expected to open in Baltimore next year. Another casino is planned for Prince George’s County, opening expected to be in 2016. In addition to all of this, Maryland Live will be continuing with its own site expansion, which will include a 52-table poker room.

Right now, the casino already has 4300 slot machines and 180 table games. During July, Maryland Live is reported to have collected in gross gambling revenue more than $52 million. This is an increase of 48 percent year to date. As one can see, the outlook for Maryland gaming seems to be very bright indeed.

September 12, 2013

Gaming Marketing Urged Toward Digital

Filed under: Casino — Tags: , , — OCE News @ 11:18 am

It is no secret that many companies have taken advantage of digital marketing over the last few years. Now, the gaming industry is being urged to follow suit. While casinos and major brands have already used digital platforms for many of their online games and apps, some have not yet seen the light when it comes to taking full advantage of digital as a marketing tool.

Experts all seem to agree that those entities that are involved in gaming should consider embracing all that is currently available in digital marketing. This would include a variety of onsite enhancements as well as using social media such as Twitter and Facebook.

According to Angel Suarez who is VP for the Red Circle Agency which is a casino marketing company located in Minneapolis: “As marketers, you need to realize that digital is the future of advertising.” These comments came during the recent Casino Marketing Conference.

Suarez gave the presentation to around 125 casino executives, as well as marketers, and remarked that digital marketing is not only cost-effective but it is also measurable. Just as important, we said, digital marketing can be employed by anyone. Every casino should have at a minimum a functional website that has been optimized with the appropriate content and should also have some form of social media marketing in place.

According to Suarez, a casino’s website is its most valuable digital platform. Websites can be optimized for better performance on the search engines, thus making it easier for people to find the site. Sites should be optimized for all search engines including Yahoo, Google, and Bing. “You also need to make sure your website is relevant to whatever a customer is searching for. It’s also important for you to be ranked across all three search engines.”

In terms of social media marketing, this should be designed and operated so that customers can interact with casinos in a casual manner. Companies should try to avoid being too one-way when it comes to social media communications. “The problem is,” he said, “casinos are not engaging in a conversation but are instead just telling people what is going on.” He cautioned against trying to use the hard sell on social media stating that those who visit the site are already sold. Companies now need to entice visitors with good quality content and information and encourage feedback.

Along with the above, companies should also look into using other types of digital marketing which can include email and text, custom content, paid media, and what is known now as owned media. Owned media is basically media that companies have produced and, therefore, own. Examples would be videos posted on YouTube, streaming content, and other forms of unique content. Owned media is a good way to get the work out at very now cost.

This was a two-day conference that took a look at the many aspects of casino marketing that companies are facing today. It included panel discussions as well as went into discussions as to where future casino patrons will come from. It also looked at ways of communication with these future patrons through incentive programs.

September 10, 2013

CEO Adelson Slams Vegas Competitors

Filed under: Casino — Tags: — OCE News @ 11:16 am

Anyone looking at the profits for the second quarter of this year for Las Vegas Sands Corp. Will be impressed. They increased by a whooping 120 percent. Much of that, however, came via record profits in Macau.

Even so, CEO Sheldon Adelson, made some off-hand comments during a recent quarterly earnings conference call that took place with several analysts. His comments were aimed at the Sands’ competition who are located on the Strip. He claimed that they were not working hard enough to increase the market.

According to the Las Vegas Sands, net income for the quarter came in at $529.8 million. This represents earnings of 64 cents per share. One year ago, it reported a net income of $240.6 million. This represented 29 cents per share.

These latest profits, impressive by anyone’s standards, were largely attributed to properties that the Las Vegas Sands operates in Macau. It was reported that revenues at the four properties increased 40 percent, coming in at about $2.07 billion. It was also reported by the Las Vegas Sands that its Macau casinos were able to bring in 14 million visitors during this same reporting quarter.

Back on the Strip however, company net revenues increased by only 5.6 percent, coming in at $345.7 million. This equals about 11 percent of the overall quarterly revenues which were $3.24 billion.

At the Palazzo and the Venetian, gaming revenues increased 11 percent. But, spending on food and beverages decreased by about 2 percent.

When asked if he thought the two Strip casinos results would be expected during future quarters, Adelson said he was not sure one way or the other. He then aimed his comments toward both MGM Resorts International as well as Caesars Entertainment Corp. The two control some 20 area hotel and casinos, and said that these companies are bringing down “the average daily room rates me and my friend Steve Wynn can offer”. He went on to say that those hotels that are owned by MGM Resorts (not including the Bellagio), as well as Caesars Entertainment Corp, “don’t have the number of rooms we have at the high-end. That sucking sound is their room pricing,” he said.

Adelson went on to make comments about the high long-term debt that the two companes have. Caesars Entertainment Corp is said to have the industry-high of some $21.5 billion in debt. For the MGM Resorts, its debt is about $13 billion. In contrast, Las Vegas Sands’ debt is reported to be at about $9.5 billion.

The combined casino operations for the Las Vegas Sands’ in Macau and Singapore are reported to be in excess of $1 billion during the second quarter, in cash flow dollars. This, of course, greatly improved the overall profits for the company. As for the Marina Bay Sands which is in Singapore, its net revenues increased by a tidy 6.4 percent, coming in at $739.5 million. Cash flow dollars are represented as those dollars in earning before taxes, interest, depreciation and amortization. For Macau, it came in at $657.2 million, and for Singapore it came in at $296.2 million.

September 8, 2013

Can Joingo Target Mobile Audience?

Filed under: Casino — Tags: , , — OCE News @ 11:15 am

When it comes to reaching casino customers to inform them about special rewards or offers, mobile marketing is taking a leading role. In fact, mobile marketing is becoming more valuable than direct mailings or offers posted on websites.

In order to reach these customers, however, a mobile application is needed. This is where Joingo LLC, which is a San Jose, Calif.-based technology company, comes in handy. They have developed a mobile app menu that allows casinos to customize smartphone applications, and target and interact with loyalty members.

According to Joingo’s co-founder Alex Kanwetz, “We have a one-stop shop solution for a fragmented eco-system of apps. It’s also not about just having an app anymore; it’s about how you use it.”

By using the Mobile Loyalty System which ties into the customer database of a casino the casino is able to create personalized marketing campaigns that are based on the customer’s past history, his or her personalized preferences, as well as geographic location. This allows those casinos that are using the app to create and deliver to time sensitive materials and promotions which were very difficult to do in the past.

In additions, customers who are using the apps can now track their own points and do so anytime, day or night. This is seen as a major convenience for customers who like to keep on top of that sort of information. It also allows these customers to collect their rewards easily. Also, these apps can be easily integrated into social media such as Twitter and Facebook. Kanwetz said, “The value to the player is that they receive something that is personalized.”

Joingo was founded in 2008, and has 25 employees. They plan to increase that number up to 60 by the end of this year. Currently, the company is concentrating on expanding its client base which now includes 12 gaming companies. Kanwetz remarked that the company is focusing on gaming simply because it is a large space and they believe they have the products that can fill some of that space.

One of the major benefits to the Joingo program is that it can be used by casinos of any size. From the largest casinos in Macau to the smallest tribal casinos, all can take advantage of the program. According to Kanwetz, they have a functional mobile marketing or loyalty application running within 30 days. The program is compatible with iPhone, Blackberry, and Android operating systems. It can deliver text messaging and mobile websites, with its text messaging based on personal preference, as well as visit patterns and customer loyalty status.

As for the marketing side, its mobile functions allow casinos to deliver offers and coupons that can be sent and delivered in real time.

The company has also developed what they are calling the Joingo Game Network. This is a new catalog of mobile gaming content that is designed for casinos and it provides the needed infrastructure to deliver these new mobile games to mobile devices. It plans to continue designing new technologies for the booming mobile sector.

September 6, 2013

No Renewal from Iowa Gaming Board

Filed under: Casino — Tags: , , — OCE News @ 11:13 am

The Argosy Casino Sioux City made a request to renew its state license. The Iowa gaming regulators denied that request. They cited the basis of their refusal on the absence of an agreement that involves a local nonprofit group. They stopped short of closing down the floating casino.

According to the Iowa Racing and Gaming Commission, the casino is allowed to stay open. The commission reported that the casino can operate indefinitely as the owner makes appeals on several gaming commission rulings. The appeals will come through legal and administrative channels. The commission meeting took place at Riverside Casino and Golf Resort which is located near Iowa City.

In addition, the commission did go ahead and reaffirm its stated desire that the floating gambling boat be replaced by a land-based casino and that this take place before the opening of the new Hard Rock Hotel and Casino in Sioux City. This facility is planned for opening sometime next summer.

For its part, Argosy did not accept the ruling quietly. The attorney for the owner, which is Penn National Gaming Inc, strongly objected to the denial of the renewal of the license, stating that this was nothing more than a continuation of a pattern of “trampling just about every procedural and substantive right an Iowa gaming operator has under state law and the U.S. Constitution”. The attorney is Chris Tayback. He went on to say that the decision was all but “preordained” as the commission has already decided to grant this new, second Woodbury County license for the land-based casino.

Back in April, the commission voted (it was a split vote) to select the Hard Rock group for the new land-based casino. There were three other proposals, which also included two separate sites offered by Penn National. The commission is composed of five members.

In June of 2012, the commission had decided that it would accept bids for the Woodbury County license. This took place after the commission expressed mounting frustration after months of failed contract negotiations between Penn National and the Missouri River Historical Development, its local nonprofit sponsor.

The gaming law in Iowa is unique. It requires casino operators who run operations in counties approving of casino gambling to sign special operating agreements with certain nonprofit groups. These groups are known as Qualified Sponsoring Organizations.

According to commission Administrator Brian Ohorilko, Argosy has not met this test and is not legally able to possess a state operator’s license. He also recommended that the commission deny the renewal of the license.

Attorney Tayback went on to argue that the commission was voting prematurely. He based this on the current status of the Missouri River Historical Development’s contract between itself and Penn National which is still being worked over. At present, Penn National, which is the second-largest casino operator in the nation, is the development over a breach of contract. The suit was filed in Polk County District Court. The lawsuit is requesting a Polk County judge to look into the commission’s refusal (of last summer) in which it failed to ratify a short-term contract extension. The extension had been signed by both parties.

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