Case Synopsis 

For well over fifty years the casino business has been on a roll, on its way to becoming a $150 billionmyear global industry. For much of that period, the United States has been leading the charge, accounting for nearly half the global gambling revenues as recently as 2010. Most of these revenues have come from Las Vegas and Atlantic City, magnets for gamblers from around the world. However, Las Vegas and Atlantic City have had to deal with increased competition from other locales. Revenues in other parts of the United States, from waterfront casinos in over a dozen states and Native American gambling locations, have exceeded those generated in Las Vegas and Atlantic City. More recently, the dominance of Las Vegas and Atlantic City in the global market had been challenged by overseas casino development in places like Macau, Singapore, Australia, South Korea, Malaysia, and Philippines. Other sites in Asia, such as Japan, Vietnam, Taiwan, and Sri Lanka, were in development as well.

U.S. casino operators were expanding to open facilities in Asia or engage in mergers and acquisitions in an attempt to cash in on this local business, but would it be enough to return significant revenue to U.S. firms? Casinos were also eager to embrace new types of gaming experiences that would attract Millennials who grew up playing video and mobile phone games. Was there enough demand to go around?

Directions: 

Read the case in your text (Case 2) and respond to the following question

Case Questions:

Examine the structure of the casino industry. What has been the effect of the changing industry structure on U.S. casinos?

Conduct a 5 Forces Analysis, what is the biggest threat/opportunity?