Casino Innovation

The Old Annual Casino Budget Dilemma

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Steve Karoul is a recognized casino consultant with 35 years of hands-on experience with the best casinos both within the United States and internationally. He is also an authority on all aspects of casino marketing. Steve has lived in numerous countries and has conducted casino marketing activities in well over 100 countries around the world.   He is an author, a lecturer and an educator who often injects his own hands on experiences and openly shares his ideas and thoughts with fellow industry executives. Telephone +(1-860) 536-1828 or [email protected] or see www.euroasiacasino.com

Casino budgets are an annual process that seems to come and go without too much ceremony or celebration. Depending upon your casino’s budget process, it can be a productive activity or an activity of futile frustration. I have researched the budget process in many different casinos looking for common denominators as well as common helpful hints to ease the pain. However, one common denominator that was heard was “I wish we could change all of the B.S. that goes along with the budget process”. So, you are not alone out there in casino land. It was the same comments from many different locations and many different kinds of casinos. Financial people view things one way, operations people view things another way and marketing people view things in an even different way. Further investigation did however divulge some common denominators as well as common complaints.

Everyone agreed that the budget process was in fact necessary and everyone agreed that some form of financial planning and record keeping is also necessary for every casino. Most individuals surveyed also felt that the casino business is different from the hotel industry, restaurant industry, manufacturing, etc. but do share certain commonalities. They also recognized that the accounting process must basically conform to certain pre-established standard accounting practices for record keeping and budgeting. Never-the-less, many casino executives felt that the overall process was in some ways counterproductive and could be improved upon. This common denominator or comment was intriguing.

Further investigation revealed that many casino executives felt that the budgeting process found in many casinos today is not always helpful since it sometimes may actually hide or hinder growth opportunities. It may mask the truth when market conditions change unexpectedly such as what we are experiencing today with gasoline prices in the $3.00+ per gallon range or higher in some States. Budgets force people to still try to “make the number” no matter what. This can cause undue stress throughout the casino organization and create a very serious and stressful atmosphere that oftentimes is conveyed to the customer in the form of poor customer service or an “un-fun” atmosphere. Remember, customers come to casinos to have FUN whether it is from gaming, entertainment, dining, etc. Read More…

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