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Posted by on Oct 1, 2014 in Blog, General Poker, Las Vegas | 3 comments

Inside the Casino Industry (My Day at the 2014 Global Gaming Expo)

 

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Day One at the 2014 Global Gaming Expo — otherwise known by the trifecta of letters “G2E” — included the following activities:  145 handshakes, 12 hugs, two kisses, 35 conversations, two meetings, one lunch, one dinner, 4 glasses of draft beer, 1.5 bottles of wine, 3 seminars, one question to a panel, and a brief argument with someone who works for the American Gaming Association.  Plus I got to hang out with Lisa Tenner and learn about a new gambling television network.  Other than that, nothing happened.

 

All this week, my mission is to see people and be seen.  Not that I care much about either.  We writers are oblivious to public persona.  It’s a trifle.  Meaningless.  Illusory.  I’d much rather spend an hour crafting word to the page than struggling to fit in at some social gathering everyone will soon forget about 15 minutes after it’s done.  Cynical?  Perhaps.  Truthful?  Absolutely.  That’s what all trade shows are basically — an annualized ritual of Vanity Fair in the flesh, a giant cocktail party decorated with convention booths, and girls in hot pants.

I arrived promptly at 9 am this morning at the Sands Expo Center, a progressive version of North Korea, otherwise known as enemy territory behind the Iron Curtain, given the evil presiding landlord who collects from his fiefdom.  By 2:30 this afternoon, I found myself in the worst possible trade show dilemma since I’d burned through an entire stack of business cards.  Which makes me now wonder — what exactly should I do with another 62 business cards that were handed to me today?  I guess I’ll just toss them into the drawer atop the 282 cards I picked up at this year’s World Series of Poker, sitting atop the 312 from the year before, and the 309 the year before that.  Surely, something will come up which renders these business cards useful.  Perhaps, kindling for a fire.

By the way — if someone out there is reading this who handed me their business card today, be advised — I’m keeping yours.  I’m talking about the slugs who I’ll never see again.  No, not you.  You’re special.

Indeed, I relish the opportunity to meet new people and get reacquainted with old friends — particularly the people I can remember meeting before.  That helps.  Remembering who they are.  As for trade shows, there’s nothing worse than being approached by someone, having them talk your head off for five minutes, and you still don’t know who the fuck they are.  Sound familiar?  Sure it does.  Name badges alleviate some of this confusion.  But some names and faces are still total blanks.  I might as well be Bambi starting into a headlight, except that I’m not that cute.

This year’s expo is as big as anything I’ve seen in the past 14 years of attending the G2E and I’ve been to seven of them.  That sort of makes me a .500 hitter.  The entire industry seems to be here — except for some of the big online companies who remain persona non grata in the eyes of their peers.  Hey people, play nice — one of these days, payback is going to be a bitch.

Time for some name-dropping because I like and respect these people and they sometimes lie and say nice things about me.  Some really cool people I saw today included (I’m keeping their business cards under my pillow tonight) — Steve Ruddock (the great poker writer from Bluff),  Vin Naryanan (CasinoCity), Marco Valerio (who has become so big he now needs no association), Bonnie Rattner (longtime marketing and advertising guru in poker), John Strezmp (an executive for Steve Wynn, who finished second in the WSOP Main Event to Stu Ungar back in 1997),  Jeffrey Haas (my former confidant at PokerStars and who now runs lots of stuff at Bwin-Party and even made the Bluff Poker Power 20, damn him!), and three bartenders who were grossly over tipped.

I also ran into an old friend and colleague I’ve known since our Atlantic City days together.  Roger Gros, writer-editor-publisher-industry insider, and I talked for quite a while.  During our discussion, I learned Roger will be the moderator for the Sheldon Adelson speech on Wednesday.  Naturally, that sparked my interest.

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From 9 to 10 am I walked the trade floor.  Bataan Death March, only it costs me $495 to do this.  There were lots of interesting booths displays tempting me with free pens and ass cheeks oozing out of hot pants.  I wish I could convey some sense of what stood out at the show, other than the free hamburgers (sorry igaming booth — I don’t remember who you were, but that burger was fucking delicious!).  Trouble is, nothing did other than the burger and maybe those hot pants.  It’s all a blur, except for the burger and the hot pants.  One company after another, hawking wares to passersby making the rounds, eager to gobble up a free fountain pen.  By the way, Wednesday I’m making a beeline for the free burgers and a view of the hot pants.  All in a professional observational capacity, of course.

BEHAVIORAL TRENDS

Hang with me, people.

At 10:30 am, I attended a seminar on current trends in the casino industry (note that I refuse to call this “gaming” — which is a farce).  The title of the presentation was “Know Your Customer:  Behavioral Trends of American Gamblers.”  The presentation was headed by Peter Yesawich, Vice Chairman of MMGY Global.  It was attended by perhaps 300-400 people.  A few highlights from my scribbled notes:

— Gambling isn’t the primary source of revenue for most resort destinations anymore.  Moreover, the percentage of profits accrued from gambling amounts to only about a third (industry-wide).  Instead, most casino revenue comes from other sources — including hotel, food and beverage, convention services, and so forth.  This percentage is steadily declining.  Gambling just isn’t what brings most people to casinos anymore.

— So-called “millennials,” which is the age group from roughly 21-30, comprises the fastest-growing segment of the American market.  Yet, they are the least interested in gambling.  Millennials want entertainment and social engagement more than anything else when they visit a casino.

— Oddly enough, millennials are the most optimistic age group about virtually every aspect of American culture — be it the economy, world affairs, their own lives and careers, and the direction things are going.  Gen-Xers, Baby Boomers, and Seniors lagged far behind in terms of consumer confidence.  Frankly, I found this to be shocking.

— When citing what specifically attracts vacationers, “gambling” was mentioned by only 13 percent of all Americans, according to a recent survey.  This percentage was 25 percent just ten years ago.  Likely, this steep decline is the result of more casinos in more markets, making gambling less alluring as a vacation destination.  Why go to gamble, when it’s right down the street?

— Mature customers exhibit the greatest brand loyalty — in all sectors including gambling.  They love Cadillacs, so they buy a Cadillac.  They enjoy the casino where they are used to playing, and that’s where they go.  Conversely, millennials display the least brand loyalty.  This goes for virtually everything, including casino-related choices.  No surprise here.  A snarky comment is in order, but I’ll let this one pass.

In short, I found this seminar to be a very informative presentation.

UNREGULATED GAMBLING

Next at 11:45 am, I attended a seminar called “Unregulated Gambling:  Containing the Threat.”  Obviously, I’m venturing into a no man’s land here, hoping to hear what measures are being taken to combat all the terrible baby killers involved in illegal gambling activity.  My soft spot for this contingent of gangsters is well-known and even better documented in my writings, given my close relationships with everything from street bookies to operators of private poker games to “illegal” online gambling sites.  I’m generally sympathetic to this black market, but that said, the panel made a number of irrefutable points about the dangers of allowing unlicensed and unregulated operators to freely conduct business.

Much of the discussion focused on jurisdictions that have confusing laws and lax enforcement on gambling devices (such as Ohio) where slot machines basically operate in the open at small bars and private businesses (450 locations with about 8,000 devices according to one estimate in northeast Ohio alone).  Presentations included the American Gaming Association and a few industry consultants who seemed to make this seem more of a threat nationally than it really is.

Little attention was given to online poker sites, illegal bookies, private poker games, and vice squads.  This, I found disappointing.  Why are they busting in on private poker games in South Carolina?  Does the AGA or the casino industry really consider this a threat?

In short, I found this seminar largely a waste of time.

Then, at 1 pm, I enjoyed a nice lunch with Todd Anderson, creator, and president of “Poker Night in America,” where I also serve as the show’s grossly underpaid and unloved Creative Director.  Joe Sartori, who’s also affiliated with the show joined us as well, along with Steven Mcloughlin, who handles all the marketing for what used to be PokerTracker, but really is a lot more of an industry insider.  I’m trying to think of an analogy for Steve as he fits into the casino business.  The closest thing that comes to mind is sap on tree bark.  If there’s something growing inside the gambling forest, Steve isn’t just there.  He’s oozing out of it like sweet syrup.

GAMBLING ADVOCACY

After lunch, I attended a seminar called “Advanced Advocacy:  Getting to Know Gaming.”  This was the best discussion of the day, by far.  I learned the following:

— The gambling industry employees more workers than either the airline industry or the auto industry.  Why aren’t we afforded the same public concerns?

— The gambling industry is misunderstood and maligned by just about everyone — including politicians, the media, and the public.  Education must be ongoing since those who shape public perceptions are constantly changing.

— The gaming industry has by far the greatest obligation to “give back” to communities, more than any other industry.  This is good.  But why aren’t Wall Street firms required to do more for society?  Huh?

— Casinos are not just about service jobs, like dealers and cocktail waitresses.  The broader payroll includes professionals of every trade — including clerical, plumbers, electricians, sanitation workers, maids, phone agents, security workers, lifeguards, entertainers, valets, not to mention suppliers of casino products who also gain employment indirectly.

— The American Gaming Association (AGA) will soon be launching it’s “Faces of Gaming” campaign, designed to show the positive impact of the industry on hundreds of thousands of lives, who have good-paying jobs, benefits, and some measure of security.  I’m not much of a fan of the AGA — but nice going.

— The broad goal is to “normalize” gambling activity.  It’s still thought of in some circles as dangerous, seedy, and immoral.  That’s nonsense.  Gambling is as American as playing softball or bowling.  Okay, I interjected that last line.

— Stories trump statistics.  No matter how much benefit casinos produce in some communities, the lone case of a degenerate gambler doing something choking will always make the news and become the perceived reality, when such instances are the exception.  Virtually all stats reveal casinos are good for communities.  Yet, most industry news in the mainstream press is negative.

The panel was stellar, including Jan Jones (Caesars), Alan Feldman (MGM-Mirage), and a Democratic Party pollster Mark Mellman.  I love hearing from Feldman anytime I’ve seen him (always spot on message).  In fact, they were all in top form.

At one point late, I asked a rather pointed question, which raised some eyebrows and created lots of injection from the panel.  Everyone responded to my question, including the moderator.  Mr. Feldman, who I love, makes two comments.  Nerve = hit.

I asked the panelists how they could possibly sit there before us and put on such a brave face about unifying a pro-gambling message, yet being so divided behind the scenes.  For instance, the industry is savagely divided on the issue of online gambling.  Embarrassingly so.  Worse, the existing casino companies often align with the most awful activists on the opposing side, groups who are anti-gambling on many campaigns.  For instance, in many states where legalization is being debated at a ballot initiative, casinos in neighboring states often join forces with religious groups and other zealots opposed to gambling expansion.  I argued that this seems terribly misguided and even hypocritical to advance gambling interests, yet also opposed such measures when it poses a threat to profits.

The panel did a terrific job fielding this difficult question and to my great surprise, didn’t deny it.  Each of the panelists stressed that divisions that exist within the industry also hurt us tremendously at the nation level.  I was contacted afterward by a number of people.  I shall see if something greater comes of this, or they will instead use my business card as kindling.

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STEVE WYNN

There’s no denying Steve Wynn’s charisma.  It’s self-evident.

Any audience he addresses eats out of his hand, from the first great story of his days as a bingo parlor operator, or when he used to run the Golden Nugget, or when he fulfilled his dream to build the Mirage, and next to the Bellagio, and then the Wynn, and then after that — Encore.  He’s awesome.  I could tell some other stories about meeting Wynn, which I will convey another time.  They are impressive, trust me.

And that’s why it’s so tragic to see such greatness reduced to some kind of play piece plucked out of a Monopoly set.  Sort of like the little man decked out in the tails with the big mustache.  He’s interesting for sure, even charming.  But he’s hardly the grand visionary anymore in a dynamic climate that’s not just evolving but has become something quite different from the days when Wynn was the true pioneer in this industry.  He once embraced change.  Now, he stonewalls it.  Rather arrogantly, I might add.

In short, Wynn shamed himself in public today before 2,000 people — admitting he knows absolutely nothing at all about technology, nor social platforms.  Yet, he’s beyond opinionated on the subject of online gambling, which he vociferously opposes.  When asked directly at the end of his speech what he thinks about legalizing and regulating online gambling, Wynn replied, “not much.”  Oh, and then, he proceeded to ramble on for the next seven minutes, crowing the musty worn-out talking points parroted by Sheldon Adelson’s paid-minions (“it will destroy the children”).  Twice, Wynn alluded to Adelson personally, reaping praise upon his business rival to the point one has to question whether he had any independent views about this at all.  From his rambling remarks, it seems that he doesn’t.  Who can forget that Wynn himself signed a partnership with PokerStars and then just a few months later, ran from the wedding like a wacko bride once Black Friday hit.  That’s not leadership.  That’s ducking and running for cover when times get tough.  That’s not the Steve Wynn we once knew.  Wynn’s position remains naively inconsistent, confusing, utterly self-serving, and grossly ill-informed.  Given what this amazing pioneer has done for Las Vegas and this industry, it’s sad to see what he’s become.

A dinosaur.

That said, for the most part, Wynn delivered a good speech or in other words, if I were Mrs. Lincoln it was a great play even though these brain stains linger on my dress.  The star-struck sycophants cheering every line and laughing each time Wynn smiled was a bit annoying.  Forewarned of the danger, I can only imagine the horror that Adelson will become tomorrow with his cockiness, the sympathetic crowd largely devoid of any ideological consistency, nor philosophical compass.  Lemmings.  Celebrity worship.  The conflation of money with morality.

Following Mr. Wynn’s talk, I headed over to the AGA’s booth where I had an interesting conversation with one of their associates (I’ll omit his name).  I took issue with the AGA’s retreat on the online gambling issue, even going so far as to say this was an act of cowardice, that no one will take the AGA seriously anymore if they waffle back and forth on such fundamental basic rights options for consumers.  I have a follow-up conversation scheduled, which might turn into a column.  I might even record some kind of debate.  Regardless, I find the AGA’s back peddling to be shameful.  But I will try and be fair in reporting on this in the future.

After that, it was time to head to the bar, where I met several other colleagues where we talked about the day’s business for the next few hours.  Then, dinner.  Then, home for this blog entry.

It’s past midnight.  Got to get up at 8 am, run three miles, then head to G2E for Wednesday’s activities.

I still haven’t figured out what I’ll do when Mr. Adelson takes the stage.  Deep breaths.  Deep breaths.  Deep breaths.

LISTEN: My views on a radio show about this topic

READ:  Stunning turn of events

3 Comments

  1. Thank you for taking us through your day at the gaming expo, A very good blog indeed. Please keep up the good work

    Cheers

  2. Incredible writing.

    TY.

  3. So you’ll be making a Youtube in the near future to tell me how to bet the cockroach races, right?

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