When we attended the ASA conference in Las Vegas in October, one thing we noticed was that the level of service in the hotel/casino was not what it once was. Staffing levels were way down, but this not only impacted customer service, but it also improved margins. During a recent BVR webinar on the gaming industry
, Joe Tinucci,
a Colorado CPA who is a consultant to Maverick Gaming, said that, this past June, staffing at their three properties in Colorado was down about 50%—but they found that they were generating more gross gaming revenue. Vegas has seen a similar phenomenon, and it’s been great for margins, according to Jack Behrens
(Dreamscape COS). Will this continue? Of course, when staffing levels rise, there will be margin compression. But the industry has learned that it can do more with less and customers have come to expect less, so the margin improvement (or at least some of it) may be here to stay.
Please let us know
if you have any comments about this article or enhancements you would like to see.