Whale hunting

HIGH ROLLERS CLOSE TO EXTINCTION

Before 2002 all gaming in Nevada had to be in public. The casino industry lobbied for private salons where the extremely wealthy could gamble, indicating that there was a need to satisfy the demand for privacy from a number of their top clients. These days these ‘whales’ are finding fewer casinos willing to risk their quarterly profit margins by accommodating such high-income players. However, the casino conglomerates do still welcome them when they can find them.

Caesars Palace and Mandalay Bay have recently applied to the Nevada Gaming Control Board for approval to continue running private gaming salons. Despite the fact that very few high rollers had availed themselves of the facilities offered by either casino, the board gave the necessary approval.

The only other casino in Las Vegas to have private gaming is MGM Grand, who informed the Board last August that in the two years since opening their salon they had not had a single customer. Lack of ‘whales’ in the city has not prevented Las Vegas Sands from applying to open a private salon at The Venetian. Although in general the industry is moving towards the grind action low-end slot players, the top casino operators see their private salons as long-term investments.

Las Vegas is recently recovering from a decline in visitor numbers. Figures in September have been good and international vacationers are once again making the city a destination of choice. With this in mind there is every possibility that the exclusive players will return. More aggressive marketing abroad, particularly in Asia, may see more use being made of the private salons that are seen as a necessary amenity to offer casino clients when competing for their custom.

The ‘whale’ hunting season is far from over and the Gaming Control Board wants to see more evidence of success. As one board member put it, “What have you been doing the last two years?”

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