Essays on Macro Analysis & Porter Five Forces - Casino Industry Coursework

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The paper 'Macro Analysis & Porter Five Forces - Casino Industry" is a perfect example of business coursework. The legalization of gaming in Nevada in 1931 led to the start of the Casino industry. This has been followed by the proliferation of casinos in other states. For instance, gaming was legalised in New Jersey in 1976 and has led to Atlantic City is a casino hub. After this casinos have been built in many areas, for instance, Mississippi and Illinois in which riverboat casinos have seen growth. The casino industry has also grown outside the United States; Macau.

It is therefore important that the casino industry in the United States should have internal and external factors in perspective. This is because the aforementioned factors will help the casino industry players to be better placed in making a profit and being the leading casino industry. 2. Summary of macro-environment (PESTEL) From the PESTEL analysis of the casino industry case study, it is clear that the government and the economic environment are the main influence of the industry. The government plays a major role as it is the body that determines the legislation and regulation of industries and thus forms the main restriction in the running of the casino industry.

Government legislations have seen the casino industry being concentrated in only specific states and areas. From the study it has been seen that casinos are mostly found in Nevada State; Las Vegas city and New Jersey State; Atlantic city. This is due to the legislation of gaming in 1931 and 1976 respectively. It has been noted that Nevada was for a long time the only state that allowed for casinos and as such garnered high revenues and status for it.

Its gambling revenues as of 2008 have been recorded to be $ 12 billion. Numerous legislations have been amended to allow for gaming. This has had an impact on competition. The amendment of laws has led to the legislation of gaming in over 20 States thus the emergence of riverboat casinos and Native American Casinos. The move has been advocated for so as to increase the States’ commercial activities and create more job opportunities. There has also been the passing of laws in Mississippi to allow for the construction of casinos as far as 800 feet from the shore.

This law was to support the reopening of casinos damaged by hurricane Katrina. Legislations to ban internet gambling have served to stop local casinos in initiating gambling. However, offshore companies have capitalised on this niche and make around $15 in revenues. Lastly, legislations have been passed to allow for gambling in racetracks. The economic environment is also a major factor in that it is the major determinant of the number of available casinos.

For instance, the global economic crunch led to the abandoning of the building of casinos in Las Vegas. For example, the construction of Echelon Place was stopped due to dwindling funds. It was expected to be more expensive than its predecessor; Steve Wynn’ s resort. The stop of construction of St. Regis has also been seen in the wake of the global economic crunch. The economic climate affects the number of customers in casinos. The global economic crisis has seen an unprecedented drop in the number of conventions held in Las Vegas.

This has led to a large number of organisations changing their venues as a result of financial restrain. The casino industry is a booming business which has helped in growing the economy. In 2008 $ 12 billion revenue was generated by the existing waterborne casinos.


Johnson G, Scholes K and Whittington R (2009) Fundamentals of Strategy, Prentice Hill FT, Pearson Education, Harlow, England

Porter M E 2008, ‘The five competitive forces that shape strategy’, Harvard Business Review, January 2008, pp.78-93.

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