PowerPoint Presentation 03/01/2014 1 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved1 Technology Strategies for the Hospitality Industry, 2nd[.]
03/01/2014 Technology in the Casino Industry Chapter 11 Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DEFINITIONS • Although technology has had an impact on all areas of casino operations, the greatest impact has been on the slot floor • When someone within the casino industry speaks about the slot floor, they are referring to the area of the casino which offers electronic gaming devices – These devices are grouped in rows on the same cabinet base called banks Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEFINITIONS • The cashier cage is the location on the casino floor that acts as the hub for all activity related to cash and cash equivalents – Cash is coin and currency distributed by the U.S government as legal tender Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DEFINITIONS • The cashier cage is also responsible for the drop • The term drop has more than one definition – The context of the discussion determines which definition is in use • The most common definition refers to the money which the casino collects from its players • It is the money wagered and lost Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 DEFINITIONS FIGURE 11-1 The Drop Team Pushes a Cart Like This One around the Casino as It Collects the Drop Boxes from Table Games and Bill Validators from Electronic Gaming Devices Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 ã All rights reserved Copyright â2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved DEFINITIONS Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 03/01/2014 ELECTRONIC GAMING DEVICES • The introduction by Bally of electromechanical machines in the 1960s signaled a significant change in slot machine technology – The mechanical switch which allowed handles to be pulled became an electronic sensor – This sensor performed better because it could detect counterfeit coins, otherwise known as slugs • Larger payouts were possible and more payouts could be made without the assistance of slot department employees Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved ELECTRONIC GAMING DEVICES • Slot machines were offered primarily as an amenity by casinos – Table games generated the majority of revenue and were considered more glamorous – Certainly, it took more skill to play “21” or craps than it did to pull the handle of a slot machine • Initially men gravitated towards the table games – To keep male table games players gambling longer, casinos installed slot machines so the wives and girlfriends of these players would have something to • If they were occupied, they were less likely to drag their husband or boyfriend away from the tables Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 TICKET IN, TICKET OUT • The most significant innovation, however, has been Ticket In Ticket Out – Otherwise referred to as TITO, Ticket In Ticket Out has revolutionized the slot department • The capability of the devices now allows for bill validators to be installed so that customers can insert bills instead of coins Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved TICKET IN, TICKET OUT FIGURE 11-2 Ticket In Ticket Out Technology Has Transformed Customer Service, Casino Financial Control, and Slot Department Job Descriptions Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 10 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 FILLS • The table games supervisor accesses the computer in the pit – He requests a fill by completing an on-screen form • The computer automatically notes the date, time, pit, and requesting table games supervisor • The cashier cage receives the notification instantaneously – The cashier goes about filling the request while he or she waits for the security officer • The dispatch desk notifies the security officer to report to the cashier cage to complete a fill – The officer is also told which pit is requesting the fill Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 11 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved PLAYERS’ CLUBS • With the advent of electromechanical machines and then electronic gaming devices, the computerized capability allowed for the development of players’ clubs – A customer signs up for a casino’s players’ club either in the casino or online • The casino issues a plastic card similar to a credit card with a magnetic strip on the back – The front displays the player’s name and membership number Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 12 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 PLAYERS’ CLUBS FIGURE 11-3 Every Casino Has a Players’ Club to Encourage Players to Return and Spend More Money Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 13 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved RADIO FREQUENCY IDENTIFICATION • RFID is a chip which emits a radio frequency – It can be coded to identify the denomination, casino, and other information • By inserting an RFID chip into each chip of the casino, the casino can monitor the movement of each chip • Sensors at the table games will know when a chip is in play and whether it won or lost by reading its position – If it moves from the player’s area to the betting circle, it is in play Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 14 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 CUSTOMER RELATIONSHIP MANAGEMENT • As we discussed in Chapter 9, customer relationship management is familiarly referred to as CRM – Just as in hotels and restaurants, CRM is a popular topic for casinos today and arguably done to a higher degree • Casino companies invest a lot of resources into identifying customers and cultivating a relationship with them – The purpose is to establish loyalty with a customer so his or her preferred casino experience is the hosting casino Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 15 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved SURVEILLANCE • Surveillance is the department of the casino which watches all the other departments to ensure that procedures are followed – If everyone follows procedures correctly, the integrity of controls is maintained • Adequate controls are needed to prevent customers from stealing cash and cash equivalents and employees from embezzling the same Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 16 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 SURVEILLANCE FIGURE 11-4 A PTZ or Pan, Tilt, Zoom Camera Can View More of the Casino Floor Than a Fixed Camera Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 17 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved SOFTWARE IN THE ENTERPRISE • The casino uses software like all businesses – Advances in back office reporting, utility monitoring software, communications capabilities, and so on, all add to the efficiency of the modern casino • Given the size of modern casinos, particularly in larger markets, computerdriven software is essential to operating these properties Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 18 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 03/01/2014 SOFTWARE IN THE ENTERPRISE FIGURE 11-5 CityCenter in Las Vegas Is the Latest Example of a Casino Development Whose Size Requires an Extensive Use of Technology to Manage and Operate Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 19 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved SOFTWARE IN THE ENTERPRISE FIGURE 11-5 (Continued) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 20 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 10 03/01/2014 SOFTWARE IN THE ENTERPRISE FIGURE 11-5 (Continued) Technology Strategies for the Hospitality Industry, 2nd ed Peter D Nyheim and Daniel J Connolly 21 Copyright ©2012, 2005 by Pearson Education, Inc Upper Saddle River, New Jersey 07458 • All rights reserved 11