Horseshoe Casino Cincinnati will become the region’s No. 1 gambling destination, toppling Hollywood Casino in Lawrenceburg, promises Caesars Entertainment Corp. CEO Gary Loveman.
Leader of the world’s largest casino company, Loveman admits that Ohio casinos haven’t performed as well as hoped. He also acknowledges the market is flooding with competition from racinos.
But Loveman says the Horseshoe casinos in Cincinnati and Cleveland have the edge to compete.
The Horseshoes’ secret weapon is something he helped to create: Caesars’ pioneering Total Rewards loyalty program that tracks gamblers’ preferences and customizes freebies and other special offers.
Loveman is keynote speaker at Tuesday’s Cincinnati USA Regional Chamber annual luncheon. Here are highlights from a recent interview with The Enquirer:
On Horseshoe's market share
“We knew we’d start in the No. 2 spot given how long Hollywood has been established, but I think we’ll get there (to No. 1 in terms of gambling dollars) – we’re not that far away now. We will establish that position over time.”
Hollywood has been Cincinnati’s dominant casino since December 1997. But Horseshoe’s opening in March has reshuffled the local gambling market.
Hollywood now has 39 percent of local gambling dollars – down from nearly 63 percent before the Horseshoe opened. Horseshoe commands 33 percent. Belterra and Rising Star casinos in Southeast Indiana are No. 3 and No. 4.
On its strategy to compete
Loveman says the Horseshoe is the region’s newest casino with the latest slot machines, the most table games, a great location and top-flight restaurants and other amenities.
Offering customers a Las Vegas-style experience in their own backyard is a powerful draw.
“We have to keep providing an experience that is superior,” he said.
Loveman added the company’s Total Rewards program provides a powerful incentive to its best customers.
They build up points that are redeemable for hotel stays and perks throughout Caesars’ portfolio of properties worldwide.
“It’s been a key advantage all along. Our local competitors can’t do that with their customers. They can’t use their points in Vegas, London or New Orleans.”
On the growing role of loyalty
Loveman pushed in 1998 to relaunch the company’s loyalty program, which has become the envy of the industry today.
“Before Total Rewards, we were collecting a lot of information, but we didn’t know what to do with it. It took us only about a month to realize we were on to something.”
The secret was to monitor gamblers’ purchases in casinos and tailor incentives and offers based on their behavior.
“Only 30 percent of adults regularly visit a casino. It’s very hard to convert a non-gambler into a game enthusiast. So loyalty and keeping your customers is very important in casinos.”
On Horseshoe's results so far
“Generally, we’re very enthusiastic. The building looks fantastic, and the customer response has been very good. But the market hasn’t been quite as good as expected.”
Loveman noted the 2.7 million visits during the first six months show the region’s enthusiasm.
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and the region’s gambling industry. Email me at[email protected]