Horseracing, casinos, and other gambling establishments have been hard hit in this economy with potential customers staying home or tightening the strings on their betting purses.
Take for example the Horseshoe Casino Hotel in southern Indiana. Horseshoe is located in the tiny little town of Elizabeth, Indiana, an approximate 45 minute drive from the more metropolitan city of Louisville, Kentucky. The population of Elizabeth, IN was less than 150 as of the 2000 census with a per capita income of just $15,208. Drawing largely from Louisville and surrounding areas, the casino is seeing considerably fewer visitors due to rising gas prices and lack of other local establishments to attract customers.
What is the casino’s strategy for customer attraction and retention during these tough economic times? The casino hotel is heavily marketing its Stay and Play Packages. A Stay & Play Package includes two tickets to a show or concert, hotel accommodations, and a $50 food credit. The hotel is betting on the hopes that people will be more willing to visit the casino if it includes an overnight stay at the hotel.
Horseshoe’s Outdoor Summer Concert Series offerings include John Legend, Alice Cooper, Dierks Bentley, Steve Miller Band, and The Killers. Other planned entertainment to boost sales and visits include two shows by Larry the Cable Guy and the Denny Crum Poker Open by local and legendary college basketball coach Denny Crum.
Horseshoe Casino Hotel in Elizabeth was formerly the Caesars Gambling boat until 2008 at which time it was acquired by Harrah’s. The casino hotel was welcomed into the small southern Indiana town based largely on its decision to make monthly contributions to a foundation to address the needs of the residents of Floyd County, Indiana, including community development, education, human services, cultural affairs, and health and medical-related programs. To date, the riverboat casino has contributed over $18 million in local grants and scholarships.
High gas prices and a poor economy mean that gamblers are spending less. Horseshoe is part of the new vision of casino resorts that combine gaming that includes blackjack, poker, and slot machines with a hotel that offers restaurants, a spa, and a golf course. According to S&P, roughly 60% of revenue for gaming companies comes from non-gaming areas such as shows and dining.
Casinos in Atlantic City have cut back the number of comps and freebies handed out to gamblers and are changing their strategies in 2010 and beyond to target bigger gamblers. Their plan is to weed out what they call mom-pop-gamblers to whom they give more free buffet coupons and show tickets to than that group spends on wagering.
The Horseshoe in southern Indiana is considered to be in the Midwest, meaning that this particular location is more likely to attract minnows than whales, so their survival strategy differs from those casino resorts in Lake Tahoe, Reno, Vegas, or Atlantic City. Casinos spend a great amount of time and effort to track the money spent in their Casinos.
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