Caesars’ CEO addresses casino concerns at Biloxi summit

Gary Loveman

Gary Loveman

With Mississippi gaming issues at the heart of his presentation, Gary Loveman, president and CEO of Caesars Entertainment, used his keynote address Wednesday at the Southern Gaming Summit in Biloxi to address problems – both current and in the future – of gaming in the United States.

In his address – “Did Dinosaurs know they were Dinosaurs” – Loveman said the model that lifted the casino industry to its place in American society could end up being the model that brings it down.

Mississippi was once the second-largest gaming area in the country, but the recession of 2008 and an increase of competition as more states legalize gaming has contributed to a downturn in gross gaming revenues. Mississippi River floods in 2011 and Hurricane Katrina left their marks on the industry in the state.

But Mississippi is not alone. Atlantic City is in even worse shape, with revenues dropping 36 percent from its peak in 2007.

“Building more casinos strikes me as a very bad idea,” said Loveman, who was the driving force behind Caesars worldwide expansion since 1998. “The model now is very different.

“We have to face the fact that we’re in a different situation.”

Loveman proposed a three-step plan to stabilize the industry.

First, instead of building more casinos in the destination and rural areas, bring bare-bones casinos into major urban areas, and develop business partners around it.

As an example, he cited Harrah’s casino in downtown New Orleans. The casino opened with just gaming and a small buffet. With little else, it depended on its downtown-area partners to grow.

He noted that other cities such as Detroit, Cleveland and Cincinnati are following a similar strategy. The larger casinos can then use their new-found databases to develop customers for sister properties on the coast.

“Destination markets need new customers,” said Loveman.

Second, since destinations need new customers, increase the hospitality experiences at the locations, Loveman said.

He noted that the Las Vegas visitor is changing. While the total revenues have increased since 1991, the gaming dollars are flat. Dollars spent on spas, shows and lodging have seen big increases.

Loveman cited amenities such as entertainers, celebrity chefs, nightlife, shops, hotels and golf as things that attract visitors.

“We don’t have enough people coming to the Gulf Coast,” Loveman said. “We have to give them reasons and make it easier for them to get here.”

Loveman pointed out that the trip-planning online sites such as Expedia and Kayak are driving forces in where out-of-state visitors go, and Coast casinos have to find a way to get people here.

Third, Loveman addressed the “Multi-Channel Engagement,” which includes all aspect of the internet and social media, not just online gaming.

“Casinos can not be a single-channel institution – or we will become dinosaurs. We have to offer our goods online,” he said.

He was referring to more than online gaming. His company has refocused its website to stress amenities. It also is embracing social media and the interent. “We need to be able to provide all our services online.”

Caesars Entertainments owns the Horseshoe, Harrah’s and Roadhouse in Tunica and the Grand in Biloxi.

 

[RSS Feed] [del.icio.us]



To sign up for Mississippi Business Daily Updates, click here.

3 Responses to “Caesars’ CEO addresses casino concerns at Biloxi summit”

  1. Lastest Casino News | Poker Played Says:

    [...] Caesars' CEO addresses casino concerns at Biloxi summit With Mississippi gaming issues at the heart of his presentation, Gary Loveman, president and CEO of Caesars Entertainment, used his keynote address Wednesday at the Southern Gaming Summit in Biloxi to address problems – both current and in the future … Read more on Mississippi Business Journal (blog) [...]

  2. casino » Blog Archive » Caesars CEO: South Mississippi needs more visitors, non-casino amenities - SunHerald.com Says:

    [...] Summit. "I would say to you that those days are over in the vast majority of existing …Caesars' CEO addresses casino concerns at Biloxi summitMississippi Business Journal (blog)Casino industry executives see change on the horizonWLOXall 7 [...]

  3. Heidi Reinhardt Says:

    Dear Mr. Loveman,

    I have read your article in the Business Journal and understand your concern in reference to casino’s, I have visited many casino’s in the past 20 years of my life and feel I might have a solution to helping your casino’s retain more revenue, as I am employed for an insurance company in Fernandina Beach, FL I have been doing some research as to how to hopefully help casino’s make more money and face that is what it is all about. I have been researching this for quite some time and would like to know if you are interested in my idea? I would like to meet with you but I do not know where you are located and if I have fly to meet with you I would have to discreatly take a day off from my job or maybe you could fly into Jacksonville International Airport I could meet you there to discuss my idea. The only reason I feel so strong about this idea is that being a patron of so many different casino’s I can put myself in the shoes of the many people that go to your casino’s. I know you probably are a very busy man and I won’t take much of your time but I feel really strong about this and feel that your casino’s could benefit finanically from my proposal. Looking forward to hearing from you when you are not so busy and have a few minutes. If you would perfer calling me my cell is 904-583-2385. Thanking you in advance for your time and consideration in my proposal. Sincerely, Heidi Reinhardt

POST A COMMENT

 

Twang & Tourism: The Country Music Trail

Our annual "Come See Us" magazine offers ideas for spots in Mississippi ranging from golf to culture to history to food. Click the photo for ideas, stories and access to the digital edition of this year's magazine.

FOLLOW THE MBJ ON TWITTER

Top Posts & Pages

%d bloggers like this: