A Message from Our Principal

The growth of gross gaming revenue over the past three years, as reported in the American Gaming Association’s 2013 State of the States Report, is a positive reflection on the hard work and tenacity of casino executives who have been navigating the treacherous and turbulent waters that resulted from the 2008 recession. Yet, the current optimistic outlook in the gaming industry provides little comfort to those companies still feeling enormous financial pressures from a restrained customer base.

New benchmarks coupled with a “lean and mean” downsizing approach currently characterize the mental paradigm shift to decrease overall gaming staff positions and produce more – - all in the pursuit of sustainable margins. But moving the goal posts has not changed the landscape, which still includes capable operators competing aggressively for mature markets. Companies continue to focus most of their marketing strategies on growth at the expense of their competitors. Creating broader demographic customer appeal and expansion appears secondary to holding on to what companies already have and trying to take business away from competitors.

The industry is feeling the pressures from both the financial investment sector and from many state governments as taxable gaming revenues decline.  This prompts an exploration of new markets.  Most recently, states and gaming companies have placed a large emphasis on the advancement of online and social gaming. Lines are being blurred as gaming companies, state governments, and mainstream casino owners are staking claims in both the social and online gaming spaces. We are on the cusp of a new dawn, and it remains unclear as to just how the gaming landscape will evolve.

It is important for gaming operators to closely follow the confluence of trends related to brick and mortar operations, online casino gaming, and the social gaming development in the interest of bringing lasting solutions to companies urgently seeking bottom-line performance. Gaming companies are sometimes guided by insightful intent to systematically engineer positive change by working closely and respectfully with their various constituents: financial stakeholders, regulatory bodies, host communities, elected officials, and management. As the gaming industry continues to expand into new jurisdictions and integrates online gaming, new challenges will continue to require innovative and creative solutions.

Player loyalty, in connection with excellence and efficiencies in operations, is a cornerstone of my belief that growing profits begins with decreasing the attrition rate of existing customers while marketing new initiatives to bring new players to the property.  Just as with traditional brick-and-mortar casinos, this is inevitably true for online gaming as well. It is my belief that player loyalty is even more important in the expanded universe of the online gaming realm where players are not necessarily bound by geography. Although every gaming property has a player loyalty program, their players are not loyal. In fact, with the competitive courting pressures placed onto customers, player promiscuity has become an acceptable norm in both the real and virtual worlds. The result is disproportionate retention and recapture rates, which ultimately costs a gaming company in lost revenue and seldom realize more than temporary short-term results. What is needed is something that captures the player’s imagination in an enduring fashion without unsustainable costs.

RMC G.M.’s core skills are the result of its team members having been actively involved in the development and growth of the casino gaming industry.  Our team was part of the Las Vegas Strip boom in the 1980’s, the growth of the regional markets up and down the Mississippi River, as well as the proliferation of Class III Native American gaming in the 1990’s.  And at the turn of the century, we contributed to the highly successful urban casino development in Downtown Detroit, which was the first urban center to incorporate casino gaming in the United States as part of its economic development strategy.  Now, with experience, expertise, and a clear vision of the path, we are well poised to assist your project to meet today’s challenges.

It is my hope that you will explore the unique components that make RMC G.M. different, and I look forward to the opportunity to meet with you and discuss your company’s potential.


David S. Schugar
RMC G.M. Principal Partner