Las Vegas Casinos Eye Return to Days of Comps and Bargains
Las Vegas casinos have been in a quandary concerning business plans on dealing with the troubled economy. The old reasoning was that the gambling industry was recession-proof, but the current market has caused major declines in the income of the Vegas casinos.
Sherman Bradley, the head gambling analyst at Online Casino Advisory, has developed the Bradley Theory as to why this economic downturn has hit Las Vegas so hard. The theory was quickly picked up, and the concept has been used in analysis by everyone from BusinessWeek to market experts from GoldmanSachs and Morgan Stanley.
Now, Richard Abowitz of the Los Angeles Times questions what Vegas management needs to do to reposition their casinos to draw gamblers, and his conclusion is indeed a cornerstone of the Bradley Theory.
Abowitz points out that "... the "If you build it, they will come" model that Vegas has accepted as doctrine seems to be facing challenges." No longer can building a new, giant casino resort be enough to ensure packed rooms and throngs of gamblers.
Then Abowitz cuts to the center of the problem: "Vegas these days is remembering that this used to be known as a bargain vacation. And returning to offering bargains may be one of the ways Vegas might deal with the uncertain times ahead. "
Sherman Bradley commented, 'Men like Steve Wynn and Sheldon Adelson need to remember that Las Vegas made its fortune as a gambling town. If Vegas wants to stay ahead of the local casinos, tribal venues, and online gambling sites, it needs to use its luxury to entice gamblers, not as separate revenue streams."
