Gambling and its Middle-Class Participants

The profitableness of gambling was not lost upon corporate America.

Starting in the 1960s, corporate involvement in gaming became increasingly apparent, and the historical connection between casino operators and criminal elements was no longer assumed.

This trend accelerated after Atlantic City authorized gambling, and today many casinos are owned and operated by publicly traded corporations.

Many of these, such as Bally Manufacturing Corporation, Hilton Hotels Corporation, Ramada Inns, and Holiday Corporation, are widely held companies with excellent reputations.

State regulatory agencies in New Jersey and Nevada generally have encouraged corporate control as an effective method of removing mob influence.

For example, Atlantic City regulates require that applicants for a casino license post a $1-million application fee and guarantee that they will construct a hotel complex with a minimum of five hundred rooms.

The incorporation of gaming has spawned a new type of casino management, one that is vitally concerned with broadening the base of gambling participation.

Originally, many casinos were geared either for high rollers (premium business) or for small-time but steady losers (grind business).

To garner new markets, corporate managers are targeting the middle class.

Casino management in many cases is making a concerted effort to cater to middle-income play; this tactic appears to be working well.

Holiday Inn significantly increased its casino revenues by aiming advertising, marketing, and promotion campaigns specifically at middle-class players.

In another case, Henry Glueck took over as chairman of Caesars World in 1982.

Indicating that Caesars could no longer rely on high rollers, he declared that under his leadership the company would 'make a push to embrace middle-income players'.

Since taking this new approach, Caesars has shown steady growth and in 1986 reported record earnings.

Gambling operations traditionally have been guided by a 'carny philosophy', customers were suckers to be fleeced, and any technique that would accomplish this end was appropriate.

This approach has accused bettors to assume that gambling operators (the house) will cheat customers 'every chance they get'.

In many cases, this was an accurate appraisal.

The legendary George Canfield, at the turn of the nineteenth century, clearly demonstrated, however, that gambling operations can be both fair and profitable.

Given the frailties of betting populations and a guaranteed statistical edge, an efficient gambling operation should have proved profitable.

Operators have learned that running clean, fair games, and thereby encouraging active and continued participation, is in their best interest.

Racetrack owners have taken broad measures to convince the public that racing is an honest game.

They have initiated comprehensive drug testing, presented televised reruns of races, organized an efficient security force, and handed out draconian penalties to those involved in incidents of race fixing.

Casino owners also have made concerted effort to convince players that the games are being fairly fun.

The fact that state agencies oversee legalized gaming operations lends credibility to those operations. Gamblers are slowly becoming convinced gambling is 'on the square'.


 

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