Global gaming research
UD's DeMicco examines worldwide changes in casino industry
12:43 p.m., Sept. 10, 2014--Recent research by the University of Delaware’s Fred DeMicco examines upcoming significant changes in the casino industry, both in the United States and abroad.
DeMicco, who is the ARAMARK Chair in Hotel, Restaurant and Institutional Management (HRIM) at UD, says that the gaming industry could be growing even in Japan, where most types of gambling are currently banned.
Research Stories
Chronic wounds
Prof. Heck's legacy
“A group of Japanese lawmakers, led by a member of the ruling Liberal Democratic Party, supports casino gambling and plans to legalize it in Japan,” said DeMicco. “The concrete laws could be approved in the next two years. If this law passes, Japan could become a profitable gaming center.”
DeMicco’s findings were included in a paper that will become a chapter in his upcoming book, Hospitality 2020, co-written with Marvin Cetron and Owen Davies.
DeMicco’s paper examines how important events like these changing regulations in Japan could shape the future of gaming around the world.
“I think that would just be incredible, what could happen there,” said DeMicco of Japan. He cited the example of another Asian nation, Macau, which became the world’s largest gambling center in 2006.
So what would casinos in Japan look like? DeMicco predicts that Japan most likely will create a small number of mega-resorts in major metropolitan areas. He said that these massive properties “would be world-class tourist attractions with 6,000 guest rooms.”
During his research, DeMicco collaborated with Frank Fantini, UD alumnus and publisher of Fantini’s Gaming Report, a renowned daily informational newsletter for investors and executives in the gaming industry. Fantini forecasts a similar model if Japan does legalize casino gaming.
“Japan is looking at this as an economic development vehicle,” said Fantini. He added that giant integrated casino resorts could “dramatically increase tourism” and “bring millions upon millions of new visitors to Japan.”
The creation of large hotel complexes like these would serve as an exciting opportunity for the HRIM industry in both Japan and abroad. For example, as DeMicco explained, HRIM departments will prove increasingly valuable to Japanese universities as tourism and hospitality expands in the nation.
“They’re going to need good managers and leaders to run these places,” said DeMicco. He suggested that UD could, “partner with business schools to teach HRIM courses and prepare them for impending casinos, resorts and increased tourism.”
UD is already building academic partnerships with universities in both Japan and China. Earlier this month, a group of more than 60 administrators and students from Xiamen University in China visited UD to experience American culture and take courses in business, English and administration.
Additionally, Rick Andrews, deputy dean of the Alfred Lerner College of Business and Economics, spent two weeks in Japan and China in March and April of this year. During his time there, Andrews met and built relationships with faculty at Xiamen University, Nagasaki University in Japan and the Southwestern University of Finance and Economics in China.
“They were really interested in hospitality and tourism education,” said Andrews of the instructors and administrators he worked with.
In the future, Andrews said that the Lerner College would like to host students from Nagasaki. There may also be opportunities for UD faculty to visit and collaborate with these universities as they develop and strengthen their hospitality departments.
“These exchanges open up a lot of opportunities for faculty and students on both sides to learn more about a different culture, do research and expand their education,” said Andrews.
If the predictions of DeMicco and Fantini about growth in the Asian casino industry prove to be correct, these opportunities will only increase as increased tourism boosts the restaurant, retail and even cruise ship industries.
DeMicco currently teaches a course in gaming management within the HRIM curriculum at UD. Sheryl Kline, chairperson of the Department of Hotel, Restaurant and Institutional Management, says that these changes in policy around the world are already influencing the focus of programs like this one.
“Due to recent developments in the expansion of international gaming jurisdictions the course content has developed from a domestic to an international focus,” said Kline. “Japan has the potential of being the next big gaming jurisdiction.”
“The bet is on Japan to add gaming,” said DeMicco, agreeing with Kline. “This would have a profound impact on travel to Japan and the development of mega-gaming casino resorts to cater to Asian high rollers and tourists from all over the globe. It could be a game changer for Asia, especially places like Macau, where revenues from gaming and hospitality are approximately four times that of Las Vegas.”
Article by Sunny Rosen