|
The key factor in producing positive
impacts from any enterprise is the sales of the
product involved to outsiders. Moreover, the
placement of a casino affects its ability to
sell
products to certain markets. If a casino is a
monopoly (or one of a few casinos) in a heavily
populated area, the casino will have no need to
market its product to outsiders. If a casino, on
the other hand, is in an area with few people,
it
must reach outside that area for players, and
hence will have a need to export its products.
The Hudson casino will have a 30% share of
the largest population area in the study —
with over 2 million adults; the Kenosha area,
with 1.8 million adults, is also shared, as the
Kenosha casino gets 40% of the market. Beloit,
with a smaller population area, has a monopoly
position and will receive 60% of the gaming
visits in the area. La Crosse has a
quasimonopoly
position which will yield 40% of the
visits from the area. Outagamie must share its
area with three other Native American casinos
that are already established, hence it will
receive only 20% of the area visits. The
Shullsburg casino will market extensively to
outsiders with its hotel, as it must compete
with riverboat casinos within its own area, and
it will receive 20% of gaming visits.
The profit margins for the casinos are also
affected by their marketing positions and their
size. The Hudson casino's ability to concentrate
marketing in one metropolitan area and
to realize economies of scale permit a higher
rate of profits. The small size of the Outagamie
casino makes the ratio of expenses larger.
Back to casino
news
|
