Is it true? Is our country facing another economic recession? According to a report published by Statista, by December 2023, we have a 47% probability that the United States will fall into another economic recession, increasing from 38% probability, which was recorded at the end of 2022.
Some economists believe we won’t see a full-blown recession, but rather an economic “slowdown”. On the other hand, according to other experts, the recession could last up to three quarters of 2023, possibly extending into 2024. In fact, some CFOs believe we are in a recession now, and some industries have already been affected, including real estate, restaurants, entertainment, manufacturing, and construction.
But the casino industry? The jury is still out…
Industry experts claim that the gambling industry is expected to get hit hard, and the industry is only “adequately” prepared.
On a more positive note, gaming companies stand on much firmer ground than in the last major downturn. Overall, margins are up, and debt is down.
Recession or no recession, some Las Vegas projects are still launching full-steam ahead. According to this article published by Bloomberg, Las Vegas is still “partying on”. In fact, 2022 saw the highest travel on record since the COVID-19 pandemic for visitors to Vegas casinos.
So what does all this mean for casinos? All in all, yes, the global economic recession has impacted the casino industry to some degree, resulting in decreases in revenue and profitability, especially during the pandemic and for some time thereafter. Regardless of your beliefs about the economy, or how your casino might be impacted, here are some tactics you can implement to ensure your casino survives the recession.
Tactics for Casinos During a Recession
1. Cut Costs
Despite the challenges, and moving forward in an uncertain economy, many innovative casinos have gotten creative on how to cut costs, such as optimizing operations and processes and leveraging technology, applications, and automation to increase efficiency.
2. Expand Digital Offerings
In addition to cutting costs and increasing efficiency, casinos can perform a cost-benefit analysis for investing in technology to create more immersive gaming experiences. Strategies such as introducing iGaming can help keep customers engaged and excited, and also earn additional revenue for casinos.
3. Focus on the Visitor Experience
However, there are two approaches to this: First, and above all, casinos must continue to focus on providing quality customer service to existing customers, developing innovative and alternative gaming options, and leveraging digital technologies to maximize their reach to remain profitable and successful even during difficult economic times.
Secondly, casinos must also develop strategies to attract new customers while still retaining their existing customers. This could include offering incentives, such as loyalty programs, discounts, and promotional offers.
Finally, casinos must look to partner with other businesses in their area to create joint ventures and collaborations to increase their customer base and reach. By doing so, casinos can ensure they can remain profitable in a recession.
4. Streamline Operations
As mentioned, one of the best ways to cut costs—that doesn’t just cut costs temporarily—but ensures a casino’s long-term success is by investing technology that optimizes and streamlines internal processes. Most businesses are shocked to discover how much they “waste” in terms of duplicative or rework, under-utilized resources, and manual processes, just to name a few. Your casino can turn “waste” into winnings by leveraging technology that streamlines processes, such as creating, managing, and communicating employee work schedules.
Casino Schedule Ease is a great place to start. Book a demo today to see how it works in action.