Gaming Industry

Abstract

This paper examines the exciting world of the gaming industry. By studying the history, present state, and future of gaming in the United States our analyst team will present a probing overview into this rapidly changing industry.

We have collected and analyzed secondary information from a variety of quantitative and qualitative publications. Our perspective of the gaming industry will be conveyed by an understanding of business practice, and will be concluded with a Christian perspective on our findings.

Table of Contents

Introduction: Lifestyles of the Gamer and Gambler pg. 3

History of Gaming pg. 4

A Brief History of Las Vegas Gaming pg. 7

Competing Firms in the Industry pg. 9

Market Forces Impacting the Industry pg. 15

Future Trends for the Industry pg. 18

Christian Perspective and Conclusion pg. 22

Introduction: Lifestyles of the Gamer and Gambler

The bright lights seem almost blinding, the smoke creates a haze around your face, and the intoxicating abundance of themed ambiance floods your senses. You are in Las Vegas, also known as Sin City, with the hope of striking it rich. The glamour of decadence makes you feel like a celebrity, you are the king for the weekend. Haley (2004) writes, “From the deep-pile carpets to the space age chandeliers, wealth permeated resort hotels on the Strip. Publicists dramatized the lives of the rich and famous, and at every turn patrons might be reminded that casino gambling had traditionally been the exclusive province of upper classes around the world.” (p. 64) Today, Las Vegas symbolizes the aspirations of a culture drawn to the ideal of getting rich without working hard. A culture obsessed with celebrities, certain that if they can live their romanticized lifestyle of indulge, they too could become famous in their own worlds.

Gaming is not a recent phenomenon confined to the desert of Las Vegas, but has been a growing industry that has hit the jackpot in the past twenty years. McGowan (2001) records, “In 1984, all forms of gambling (casinos, lotteries, pari-mutuel betting: the three segments of the gambling industry) accounted for less than $15 billion in revenues. In 1995, these gambling activities generated $55.3 billion in revenues, nearly a 400 percent increase in 11 years. Gambling had become the largest component of the American entertainment industry.” (p. 3) (Exhibit