Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
49 Cards in this Set
- Front
- Back
|
Theoretical Win
|
The win based on a mathematical equation that consists of the house advantage, the average bet, the time played, and the number of decisions per hour and is written as:
Theoretical Win (TW) = House Advantage x Decisions per Hour (DpH) x Average Bet x Time Played (Size of bet) X (Hours Played) X (Hands per Hour) X (House Advantage) |
|
|
a) Indian Sovereignty
|
-Inherent authority to govern themselves
-domestic dependant nation; nation within the nation -U.S. Constitution -Supreme Court Ruling (1831) -Indian Reorganization Act (IRA 1934) |
|
|
-U.S. Constitution
|
a) Indian’s are not taxed
b) Congress has powers to call out no over nation c) Protect Indians from state control |
|
|
-Supreme Court Ruling (1831)
|
a) Right to manage their own affair, govern internally, engage with federal gov.
|
|
|
-Indian Reorganization Act (IRA 1934)
|
a) “Indian New Deal”
b) Signed by FDR and set land to reserve for the benefits of Indian tribal c) Arizona ST has the most reserved land for Indians |
|
|
b) California vs. Cabazon (1987)
|
-Controlled by congress and Federal
-Upheld gaming right for free of state control -similar gaming is permitted within state outside of reservation |
|
|
c) Indian Gaming Regulatory Act (IGRA 1988)
|
-biggest gaming act has ever passed
- “American Gaming Act” -signed by Ronald Reagan, giving state some power, Federal has the power to regulate btw State and Tribal |
|
|
-Tribal – State Compacts (agreement) ;framework for regulation; “Good faith”
|
a) any class III on reservations
b) allocation of criminal, civil jurisdiction , enforcement of law and regulation, minimum standard for operation, technical standards for gaming machine, only VERIFY not regulate 2%(to govt) and 8% (to state), authorize state to inspect casino, contributing %of gaming revenue, financial audits, required background check and etc… |
|
|
d) Three Classes of Gaming
|
-Only Hawaii and Utah prohibits gaming
-Class I: Traditional Indian Gaming, Social gaming for minimal prize, are not subject to IGRA’s requirements -Class II: NO machine gaming, only game of chance such as BINGO -Class III: casino-style gaming, all forms of gaming |
|
|
e) Lansing casino proposal
|
-Vandervilt (bay mills) was ordered to close again because it is tribal casino off reservations; still pending
-Five 5 authorized OFF reservation casino (100Miles from Lansing) -Internet gaming (Front Runner) -Loophole: best interest of Tribe, must approved by other tribes, state governor must approve. |
|
|
a) Wagering Tax
|
-common tax for casino
-fees for growth of gaming -used to compute excise taxes for both legal and illegal wagers of certain types, -For state authorized wagers placed with bookmakers and lottery operators there is a tax of 0.25% of the wager, if it is legal. If the wager is not legal, the tax is 2% of the wager. -state (8.1%) and city (10.9% of *net win) total of 19% in Michigan -Annual State Service Fee (not related to revenue) ; annually pay |
|
|
-Varies greatly by states
|
a) Michigan
-18% of growth revenue b) New Orleans tax goes to elders |
|
|
-breakdown of Nevada
|
a) Lowest tax in the country
b)No income tax, estate tax, only Property Tax and employee payroll Tax c) tax-annual quarterly basis tax -growth revenue -$84,000: 4/5% tax -over 84,000: 67.5% tax -Most complicated |
|
|
c) Taxes at tribal casinos
|
-varies even within the state
-tribe is lower than states -not tax, it is a “REVENUE SHARING” (same as tax but different term) |
|
|
d) Michigan taxes
|
-paid to local and state
-payment amount is only thing to report -Tribal casino in MI, only allowed to make 50,000 or 0.05% net win -opened 2nd Pokagon Four Winds Casino in Hartford on 17th of Oct. |
|
|
4) Multiplier
|
- Ripples from direct spending
-NOTHING to do with local economy or OUT SIDE of casino -Secondary impact of direct spending -Bigger casino has more ripples and smaller casino has less ripple impact -Tourism not only creates jobs in the tertiary sector, it also encourages growth in the primary and secondary sectors of industry |
|
|
a) Leakage
|
-Extra tax to Govt.
-locally owned casino will have higher multiplier and money will spend or circulate within local Ex) MGM Detroit is not owned by local - revenue generated by tourism is lost to other countries' economies |
|
|
5) Total Spending formula
|
-Total spend + re-spending
|
|
|
6) Economic Impacts – Factors
|
-Total Spending
a) gaming -Mean Spending a) gaming + food + entertainment and etc.. b) per person: expense getting to the casino -Total Customers a) determining # of customer -hard time determining -estimates or guess or assumption -Total Economic impact a) Determining Re-spending -Money cycling back to casino ex) entertainment within -assumption not determined |
|
|
5 Factors that effect Economic Benefits
|
One: Resident or Visitors
-because it is local -bringing new money Two: Where did the money come from Three: Substitution Effect -people who were doing lottery or tracks change to casino Four: Different Tax Rates -local vs global Five: Expenditure and employment multipliers -direct or indirect labor wage |
|
|
a) Trends
|
Casinos = 350,000 employees and Gaming
Manufacturing Gaming Devices = 370,000 22 years of growth $12.9 Billion in wages Industry = 1 million employees |
|
|
b) Positives
|
o Growing Industry
o World of Opportunities o Working Environment Designed for Success o Global Perspective o Commitment to Diversity o Wide Range of Benefits o Caring Community Partner o Satisfied Workforce o Lively atmosphere |
|
|
c) Myths
|
-The mob still runs it
-The “backroom” -Your degree = CEO |
|
|
1) Problem Gaming
Technical name |
– Achilles’ hill ( negative social impact) Invisible addiction than alcoholism
-anti-gambler exaggerate the danger for propaganda purpose -Pathological Gambling (Diagnostic and Statistical Manual f Mental Disorders); DSM -sinful to “sin city” in Las Vegas Fyodor Dostoevsky’s The Gambler |
|
|
b) Problems with and associated with gaming
|
-Moral damage: no studies done
-Crimes committed by those addicted -Family/work problems -Financial damage -Gambling operators grouped with business that have neglected the problems |
|
|
i) Action problem gambler
|
-gambles to achieve a rush that ultimately proves problematic
-develops a destructive affinity -usually associated with action-oriented game such as craps or sports wagering |
|
|
ii) Escape problem gambler
|
-gambles not so much to feel great, but rather to feel nothing
|
|
|
d) Demographics
|
Underage gambling
-According to 2003 study, 80% of youths ages 12-17 had gambled in last year (card games, games of skill, sports gambling, and the lottery) -Probably higher recently with online poker -Gaming companies and regulators take keeping underage gamblers out of casinos Senior Citizens -Higher percentage (5.5%) of problem gamblers than general population |
|
|
10) Why operators concern themselves with what politicians want
|
-because casino profits depend on governmental decisions
-authorized and regulated by politician and civil servants |
|
|
a) Customer motivation
|
-economic (losing money is acceptable),
symbolic (risk taking, control over one’s destiny, and replacing love or sexual desire), and pleasure seeking (Positive reinforcement, self-esteem enhancement, and pure pleasure seeking) -culture (influenced by religious affinity, educational level, and peer group recommendation) - social environment, economy, and laws (legal) |
|
|
b) Process of Decision Making
|
1) Problem recognition
2) Information search 3) Decision making 4) Post-purchase evaluation |
|
|
c) Economists’ Theories
|
- Veblen’s theory of conspicuous consumption: Show off
- Demonstration of social standing - Underestimate the true probabilities of a loss - Overestimate the chance to win |
|
|
-Recreational gambler
|
a) high roller to low rollers
b) just another form of recreation |
|
|
-Occupational gamblers
|
a)use rational process for gambling and file IRS tax returns on their winnings
b) known as professional gambler |
|
|
-Compulsive gamblers
|
a) live for gambling
b) not a rational process, steal, create family crises and have high job insecurity |
|
|
13) 4 major trends in gaming
|
- Upscale: ex) restaurant, shopping
- Channel - Service - Age targeting |
|
|
Picking one casino over another
|
-Player’s club: casino collect your win or lose data
-Service |
|
|
a) Drop
|
-buy in money (handel term for sportsbook)
-not willing to lose (Keno uses WRITE,bingo-take…) -comes from the action |
|
|
b) Run Downs
|
-Drop minus(-) missing chip
-Fills (bringing chips to table) and credits(take chips form the table ex too many chips on the table); bird cage -Tac Card: tracks total inventory on the table |
|
|
c) Hard count/soft count
|
-Soft counts: jumpsuits and very strict procedure, highest access to cash, most controlled area in casino
-hard counts: coin and chip count area, secured room used to weigh, wrap, record, and verify the contents of the slot drop buckets. The hard count room can also act as a storage facility for the casino cage. |
|
|
d) Checks and Balances
|
-separation of power
-to reduce mistakes or improper behavior -ensure that no one person or department has absolute control over decisions, prevents any one person or department from having too much power |
|
|
e) Win/Hold =
|
Drop - Payouts
|
|
|
Howard Hughs
|
-TX millionaire
-lead monapoloy |
|
|
Steve Wynn
|
-made LV into world-class gaming destination
-Mirage, Treasure Island, Bellagio, Wynn Resorts |
|
|
Individual owners to team management
|
-unofficial guidelines
-personality of the company -managed by one man -fear of management -A.A. were banned to be employed |
|
|
Rat Pack
|
-most of casino dropped banning A.A.
|
|
|
Team Management & Corporate Culture
|
-Started in 70s
-Huges and Barron Hilton -Corporate Gaming Act -Replaced individual owner ex) Beaner’s casino -divided casino into casino vs. Administration |
|
|
Two cultures collide
|
-Old school: has to start from bottom to top
-New School -With new gaming venues: competition for employees became intense -still occurring: lingering effects (superstition) |
|
|
Low tech to high tech
|
-machines pull handle machine (1875)
-2000s multi denominator a) Tito me in vegas (Ticket in- Ticket out) b) Computers grab data from machine c) Server based d) Surveillance |
