postheadericon Interesting facts about the casino industry

Kevin Sheehan has started many businesses in his time and has seen many successes. It goes without saying he has also faced some failures but those are just part of it. Kevin Sheehan’s new venture is in the casino business. Like everything you start, it requires a lot of research and a look at the pros and cons before really jumping into it.

 

Considerations before jumping into a new venture

Every industry is different offering its own advantages and disadvantages that will be the challenge figuring it out. When it comes to the casino industry, it is clearly a business in which people can easily cut form their spending if they do not have much money left over after they have paid for everything. When the economy is not doing very well, the revenues of casinos will not either. No one is off the hook when this is the case even major players such as Las Vegas Sands, MGM Resorts, Melco Crown Entertainment and Caesar Entertainment. There are research companies that keep a clos eye on these trends in the performance of leisure companies. Commercial casino has had about $37.3 billion 6 years ago in this sector. It came in third place after consumer electronics and full-service restaurants. These two categories have collected the most by a long shot as compared to casinos.

There are a lot of factors that influence the public’s spending on these industries such as the weakness in the job market, credit market disruptions, high energy food and fuel costs, fears of recession, changes in the consumer confidence of the economy and so on. These all reduce the spending made in luxury amenities and leisure activities.

 

How politics affects the casino industry

Aside from all these mentioned above, the casino business is prone to regular and extensive regulations by the government. This goes by saying that the barriers to entry opening up a casino is fairly high. The compliance cost to businesses can have a negative effect on the operations on these businesses, namely financial.

When people are not willing to travel much, casinos feel the pinch. This is because the less people visit casinos; the less revenues will come in. That is why they have programs in place for their high rollers to get them to come back for a reduced fare and free accommodations to come back and play. For some players, they may even send a private helicopter to come back and get them in the casino again.

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