Deal Me In

Although by no means recession-proof, the gaming industry is still attracting crowds--and for retailers continuing to expand in the downturn, casino sites are in the cards. In fact, experts say it is the retail that often serves as the kick-start to a casino complex. The American Gaming Association (AGA), which represents the commercial casino-entertainment industry, found that retail provides a casino operator with competitive advantages and marketing appeal, driving volumes of new visitors to the door. And according to 2008 research conducted by Loganville, Ga., consumer marketing firm Richard K. Miller & Associates, “Spending on entertainment and amenities has surpassed gaming at casino destinations.”

On the Las Vegas Strip, non-gaming amenities have become an important line item in the industry’s profit picture. The Nevada Gaming Control Board posted non-gaming revenue on the Las Vegas Strip in 2005 as accounting for 58% of total revenue, compared to just 47% 10 years ago.

While the Las Vegas Strip is not representative of all U.S. gaming, it does continue to lead industry trends. And the trend clearly is to beef up the amenity ante that surrounds the casino, which means layering plenty of retail and restaurant--and hotel--uses into the mix.

“Overnight stays will be what drives the retail and restaurants in casino environments,” said Jeff Green, president of real estate consulting firm Jeff Green Partners, Mill Valley, Calif., and a longtime retail consultant to the casino industry. “The retail will do better if the casino has a larger hotel component.”

Indiana Live!, a project developed by Power Plant Entertainment Casino Resorts Indiana, LLC, an affiliate of Baltimore-based The Cordish Co., has also integrated a state-of-the-art gaming facility with landmark restaurants such as Cafe Live! by Wolfgang Puck and significant retail. The casino opened in a temporary pavilion in June 2008 near Indianapolis, and the permanent facility celebrated its grand opening.