Volatility attacks! in the LVBP

The latest Las Vegas Business Press is on the streets, and it includes my thoughts on the April numbers:

April revenue results for Nevada’s casinos contained a not-unexpected surprise. The hands of fate, in the form of a lower-than-usual baccarat hold percentage, finally caught up with the state, proving that an over-reliance on high-end gamblers is at best a stopgap strategy and no formula for growth.This April, players bet about $693 million on baccarat. This was enough to make it the biggest April in Nevada baccarat history, with nearly 30 percent more money played than in April 2009, which was a similar advance over April 2008.

via Las Vegas Business Press :: David G. Schwartz : Gaming demand’s down, do we need new marketing?.

We’re going to see a lot more of this until someone figures out a way to get more–many more–lower-budget but higher volume gamblers back on the Strip.

Casino employment trends

Thanks to the State of the States publication from the AGA, we’ve got some decent numbers for the national commercial casino industry. With more than ten years of reports behind us, I decided to start pulling together some of the statistical information into 1-pagers that will make it easier to see the trends in American casino gambling.

What’s the trend? Fewer casino employees. Nationally, the number of people working at casinos reached its peak in 2000–ten whole years ago–and has had a net decline since then, though there was a considerable bump in the middle of the decade. As of December 2009, 328,377 people worked in casinos–about the 1998 levels, though three states (Michigan, Pennsylvania, and Kansas) have added casinos since then.

Nevada casino work isn’t looking so promising: 177,397 work in Nevada casinos now, considerably fewer than in 1998 (182,621).

This reports suggests that casino in general are become less labor-intensive. I’m currently working on a Nevada project that will prove (or disprove, though it seems unlikely) this proposition by relating employment to numbers of hotel rooms, gaming positions, and gaming revenues.

Here’s the US Commercial Casino Employment report: http://gaming.unlv.edu/reports/casino_employees.pdf

Vegas Seven double shot

It’s Thursday, and if you like my writing for Vegas Seven, it’s a lucky Thursday, since I’ve got my usual Green Felt Journal column and a more in-depth Latest Word.

The Latest Word piece takes a philosophical and even theological look at poker, winning, and losing:

In other words, poker isn’t always fair. Of course, it’s all about perspective. The best hand at the showdown wins the pot. It doesn’t matter that it wasn’t the best hand pre-flop, or that someone with a better hand folded on the turn, or that your opponent made a miracle draw to fill his inside straight and won a pot he had no business playing for. That, as they say, is the luck of the draw. And it has absolutely nothing to do with whether you’re a better friend, lover or parent than your opponent, or whether you need the money to save a life and he’s just going to blow it at the craps table. The cards have no conscience.

The Winning Hand is Not to the Swift …

For the Green Felt Journal, I took a look at the business and organization behind the World Series of Poker. It’s considerable.

If you’ve watched the World Series of Poker on ESPN, you might think that it’s a pretty laid-back event. Sure, there’s plenty of tension at the final table, but it’s basically just a bunch of guys and gals getting together to play cards, right?

Actually, the two-month tournament at the Rio is all about the cards, but it is orders of magnitude more complicated than your Tuesday night home game. With 57 bracelet events, daily satellites and nearly 80 cash games going on over the course of the tournament, the World Series of Poker is more than an event.

“It’s an organization, not an event,’ says Jack Effel, vice president of international poker operations and director of the World Series of Poker for Harrah’s Entertainment. “It’s got to be that way to be successful.”

Inside the WSOP

Two very interesting columns to write. Enjoy.

An uncommon cruise

Neat story from the Chicago Tribune about a cruising riverboat:

For a few hours Wednesday morning, a riverboat casino that’s been moored on the banks of the Illinois River will head for open water.The Par-A-Dice Riverboat Casino hasn’t sailed in 11 years.

But casino owner Boyd Gaming Corp. plans a three-hour cruise to comply with new U.S. Coast Guard requirements.

via Peoria casino setting sail on rare river cruise – chicagotribune.com.

Neat that after 11 years they can still fire up the engines and go cruising.

This is the perfect set-up for my idea of an entertaining TV series: Lost meets Casino.

It’s (possibly) a faaake!

Really good piece in the LV Sun today about the rise of phony online hotel reviews, and what travel sites are doing about them:

The rise of traveler-generated online reviews has forced hotel managers to contend with anonymous posts from angry or disappointed customers.

For people in the business of promoting Las Vegas hotels, it has also opened the door for sneak counterattacks in the form of bogus positive reviews created to boost their clients’ image among the traveling public.

via Customer may not have written that online hotel review – Tuesday, June 22, 2010 | 2:01 a.m. – Las Vegas Sun.

The potential for industrial espionage is just about unlimited with online reviews. With a lot of money at stake, I’m not surprised that some people would try this.

Looking at a few out-of-market hotels recently, I saw that one hotel owner responded to a negative review by claiming it was put there by rivals trying to ruin him/her. While that may have been true, it came across as paranoid.

When I look at online casino reviews, I assume that you’re always going to have a small percentage of cranks who aren’t happy with anything. Looking at all the reviews, though, you see trends emerge: if most people say that hotel is noisy, or has bad service, or has the best blueberry muffins in the state, it’s a fair bet that this is a genuine response.

As far as TripAdvisor goes, it judges just how happy guests were with their stay, rather than the amenities or value a property provides. For the top 20 Las Vegas hotels (as of right now), there are just 7 five-star hotels–the rest are 3, 4, and even lower.

That being said, unless there’s a widespread campaign to sabotage Aria, you’ve got to consider that they’re tracking far below the other resorts in their class on TripAdvisor–ranked at #66 in the market, they are below the Four Queens and Planet Hollywood. While some of this may be because guests at the Four Queens have lower expectations, the fact that other five-star properties are ranked sixty places ahead of Aria should be a red flag that there are, at the very least, customer service issues at the resort.

I’d agree with Professor Erdem that casinos should really be using the negative reviews to engage their guests. At the very least this will help to weed out the bogus reviews, and at best it will help them resolve some issues.

Glimpse into Sahara’s future?

An LA Times article about Sam Nazarian’s plan for a nearly-finished hotel he just acquired in Hollywood got me thinking that this could be a model for at least one of the towers at the Sahara–if things ever turn around enough to justify the renovation:

The former Palihouse, which Nazarian estimates is about 85% complete, is already different from traditional hotels. Its average room is 800 square feet and contains a kitchen, washer and dryer. The target customer is “a new generation of bohemian do-it-yourselfers,” Nazarian said, who are tired of “big box hotels that are over-designed and over-built.”

He hopes to attract guests in the entertainment industry who come to town to work on extended projects, he said.
“The size of the room and its apartment-like nature allows people to stay short term or long term,” Nazarian said. Room rates haven’t been set yet.

via Sam Nazarian to take over, finish Hollywood hotel – latimes.com.

Could something like that work on the Strip? There are plenty of people who come to town for extended people and, if they have the budget, would want something on the Strip.

Nazarian’s SBE Entertainment owns the Sahara, and it’s no secret that it was going to be major-ly remodeled before the economy took its nosedive. From what I remember of the plans, they were premised on appealing to a similar demographic.

Maybe this is how Vdara or Veer Towers should be repositioned: an extended stay Strip option, with weekly rentals. No washers and driers that I know of in Vdara (I didn’t see all the suites), so laundry service would be an issue.

Book Review: The Serialist

David Gordon. The Serialist. New York: Simon and Schuster Paperbacks, 2010. 335 pages.

Fiction is much harder to review than non-fiction. With the latter, you just need a good topic and a passable writing style, and you can get a feel for the book within a few pages. Fiction, which requires a much bigger investment from the reader, it a different animal. A novel can go from great to awful in less than a page. Maybe this is why I review so much more non-fiction than fiction: it’s easier, and it’s much more straightforward. But I decided to take a chance on The Serialist.

The Serialist starts strong–in the first 20 pages, I thought this was the best novel I’d read for a while. It’s a great set-up–Harry Bloch, a struggling writer who toils in the trenches of genre fiction while his ex-girlfriend runs with a higher-class literary crowd. Gordon really nails the struggling genre-writer thing, and he creates a character who’s painfully aware of his own short-comings.

Then the plot kicks in, with Bloch being commissioned by a serial killer on death row to do some freelance work. From there, the writer’s pulled into the story, and must play detective for high stakes in a deadly game of cat and mouse (yes, I know I’m mixing metaphors…I’m paying homage to the genre). To me, once you’ve got bodies turning up, the story gets much less engaging. Serial killers are just about all the same: they’re narcissistic sadists. Struggling writers, though, come in all different shades of desperation and failure. There’s just more room for real novelty (and literary experimentation) there. I know there are probably way too many writers writing about writing, but to me it’s more fun to read that than a writer writing about serial killers. If you like grisly, though, you’ll get your fill.

It’s still a good slice of crime genre fiction, and it’s an interesting twist on the concept of a writer (or editor) getting entangled in his story, much like Umberto Eco’s Foucault’s Pendulum, but tending towards the pulps rather than the esoterics. Could have done without the Al Gore reference in one of the stories, though–if it’s earnest, oh please, and if it’s ironic, that was maybe too subtle. In any event, it took me out of the story and got me thinking about the politics of climatology, which probably wasn’t the author’s intention.

At the end, it was an entertaining book, and decent crime fiction. By half-way through, I wasn’t as entranced as I was in those first 20 pages, but it still delivered something good.

Harrah’s Twitter Team in Vegas 7

Thursday means another Green Felt Journal in Vegas Seven. This week I discuss the team behind Harrah’s tweets:

Social media websites such as Twitter and Facebook have been invaluable tools for casinos. They can foster a sense of familiarity with guests, but they are anything but casual. Plenty of work goes into manning the new-media ramparts for Las Vegas casinos.

Harrah’s Entertainment took its embrace of new media to the next level by launching its New Media team in February. The group, directed by David Koloski, includes Eric Petersen, the manager of social media strategy, who takes the company’s interactive Tweeting and Facebooking very seriously.

via New Media team keeps Harrah’s up to speed | Vegas Seven.

I’ve just finished my pilot study of casino Twitter, which is available here. If I have time today in between a few other updates and other work stuff, I’ll try to post some of my thoughts on the study.

Writing about gambling

Based on a discussion in my Gambling and the Media class, I wrote a little essay about how gambling’s depicted in film and literature. Now it’s a Las Vegas Business Press column:

Looking at how gambling is depicted in books, films, and television says a lot about how people perceive the pastime, but it often says more about the author’;s mood or his or her plot needs.

The general rule is that the more important gambling to the plot of the story, the less positive the portrayal of gambling. Take, for example, Fyodor Dostoyevsky’s classic, The Gambler. In it, the title character loses his soul to roulette. And the casino itself is decidedly unglamorous. “There is no splendor whatsoever in those sordid rooms,”; Dostoyevsky writes, “and as to gold, not only is it not piled on the tables, but one scarcely ever catches sight of it.”

via Las Vegas Business Press :: David G. Schwartz : When writers feel desperate, gaming depictions turn dour.

So if you’re looking for a positive, or even neutral, view of gambling, search out a movie or book where gambling isn’t the focus. The one exception is books about how to win at gambling, curiously enough.

Podcast up: interview with Jack Effel

I spent a few hours down at the World Series of Poker this morning, and came away with one of the best interviews I’ve done yet. It’s now podcast #22 in the UNLV Gaming Podcast Series:

22-June 14, 2010
Jack Effel, Vice President, International Poker Operations and Director, World Series of Poker at Harrah’s Entertainment
In this interview, conducted June 14, 2010, WSOP Director Jack Effel talks about his early interest in poker, the path of his career, and the logistics behind puttng on the World Series of Poker. It’s an extremely informative interview, and a must-listen for anyone interested in how tournament poker works.

Listen to the audio file (mp3)

Keep in mind that this is the busiest time of the year for Mr. Effel. I asked for 30 minutes, and would have been happy with 20. I got an hour and fifteen minutes of his insights into the WSOP, for which I’m grateful. If you’re a student of poker, you really have to hear this to believe how great it is.

I’m hoping to set up a few more interviews at the tournament with some of the pros.