Making a splash in Niagara Falls
Making a splash in Niagara Falls
Niagara Fallsview Casino Resort is the most ambitious of Ontario's casinos
By Patricia A. McQueen
It was known as the place for honeymoons and romantic getaways, and the place where thrill seekers in barrels hoped for the ride of their lives. The Niagara Falls area, straddling both the United States and Canada, is home to one of nature's most stunning attractions, but even that couldn't stop an economic downturn as industries moved out of town and the city centers declined.
But that has all changed thanks to casinos and the millions of dollars of investment they've brought. Nobody's joking about Niagara Falls anymore.
The latest, and most ambitious, player on the scene is the Niagara Fallsview Casino Resort, the third full casino in the greater market area that also includes two racetrack casinos, one on each side of the U.S./Canadian border. Fallsview was originally intended as Ontario's permanent casino in Niagara Falls, to replace the Casino Niagara, which opened as a temporary facility in late 1996. However, the provincial government has so far decided to keep both facilities open.
They face competition from a third casino, Seneca Niagara, on the U.S. side, and another Seneca casino is planned for nearby Buffalo. Clearly the competition is intense, but the C$1 billion Fallsview currently stands at the head of the pack in terms of amenities and design.
"The concept was to build something that was the must-see attraction in a must-see part of the world," said Larry L. Lewin, president of Niagara Casinos for the Falls Management Company (FMC).
Fallsview opened in June 2004, and is operated by FMC on behalf of the Ontario Lottery & Gaming Corp., which is responsible for all gaming in the province. The property is the largest privately-funded commercial development in Canada, and sits on a 23-acre site overlooking both the Horseshoe and American Falls.
It includes a 200,000-square-foot casino with a poker room and a high-end gaming room, numerous restaurants and clubs, a 374-room hotel, a 50,000-square-foot convention center, a performing arts center, and a luxury spa and health club. And taking a cue from Las Vegas, Fallsview includes a 100,000-square-foot shopping mall in the center of the facility.
The hotel is on the small side for such an ambitious property, but that was by design.
"It was kept small so that we would work very closely with other hoteliers in the area to help support total tourism in the area and not just for a specific property," Lewin explained.
While he acknowledges that Niagara Falls may not necessarily have needed or demanded a property of Fallsview's scale, Lewin thinks it will have the same effect on the region as The Mirage did on Las Vegas.
"When Steve Wynn opened that, it was the start of the re-creation of what is now Vegas today. We have a unique property-people come in and are stunned by it. It's a lot of Las Vegas in a place outside of Las Vegas. And it's in a market that wasn't really known for anything other than the Falls and was somewhat declining. Now it's revitalized. This market is growing tremendously."
Casino 'mirroring' trends
Customers entering Fallsview's spacious casino will find 3,016 slot machines, 134 table games, and nine poker tables. The casino doesn't play favorites with vendors, offering games from Aristocrat, AC Coin & Slot, Atronic, Bally, IGT, Konami, and WMS Gaming. About 5.5 percent of the machines are leased or participation games such as Wheel of Fortune and Monopoly, but that number varies as performance changes.
Fallsview's slot machines are all coinless, or ticket-in/ticket out (TITO), but Lewin noted that Casino Niagara hasn't yet made the conversion to TITO machines.
"I think the industry will become totally TITO, that's the wave of the future," he said.
That seems inevitable, but there is one problem. Although most regular slot players seem to prefer the TITO machines, casual players looking for the "gaming experience" don't get the noise factor of dropping coins, he noted.
"We as operators have to figure out how we can bring the excitement of winning back into the casino," Lewin said. "People don't perceive that there are as many winners as before" without the coins.
The casino's slots mirror the trends seen in many other casinos, in that players are going for multi-line, multi-coin games. Nickel and penny denomination games are very popular, but players are averaging about 22 coins per handle pull on nickel games, and about 40 coins on penny games.
"The industry has changed into people playing lower denominations, but they like the new video multi-line combos," Lewin noted.
Penny or nickel games account for about 23 percent of the slots on the floor; quarter machines are almost half of the floor.
Players also like the high-end progressive jackpot games, and last year Fallsview had Canada's largest-ever Megabucks jackpot winner when a player hit for C$5.7 million.
Of the casino's table games, the most popular is blackjack, with 67 tables. Baccarat is next, with 15 tables including variations of that game. The rest of the tables run the gamut of typical casino games, such as craps, roulette, and several kinds of poker. There is also a nine-table poker room.
Playing the market
Having the right gaming mix in a casino is only a small part of getting players to the facility in a competitive market. While Fallsview's amenities make it unique among the gaming properties in the area, it doesn't automatically mean people will visit.
The issue is complicated in Niagara Falls by border issues and the U.S./Canada currency exchange rate. Lewin noted that last year, the U.S. dollar weakened considerably, making it less attractive for Americans to play in Canada. Border crossing issues have also influenced potential visitors, with the perception being that crossings are becoming more involved. Add to that the July terrorist bombings in London, and "people are skittish," said Lewin.
"So we have seen visitation from the American side decrease, not just at our property, but all the hotels around here."
He estimated that about 30 percent of Fallsview's customers are now coming from the United States, certainly a lower percentage than had been anticipated when the property was designed.
"We are much more dependent on a Canadian market, so we're fighting for marketing share against Casino Rama, Woodbine, Fort Erie, Flamboro, and Mohawk."
To win those customers, Lewin knows it's all about customer service.
"Attitude, service, and comfort," he said. "If someone's looking for a slot machine, they don't necessarily need to come here. If they are looking for an experience, they'll make the choice to come here."
With Fallsview's limited number of hotel rooms, the property has to rely on day-trippers to a great extent. People need to have reasons to visit the area, and there is continuing investment in the Niagara Falls area to provide those reasons, to rekindle it as a top tourist attraction. For example, new golf courses are being developed, and Casino Niagara is building a water park.
To attract more American customers, a new television advertising campaign ("Experience Something Special") was introduced.
"We're going to get much more involved inside the different communities on the U.S. side, specifically speaking of the Rochester, Syracuse, Buffalo, Cleveland, Pittsburgh, and Erie markets," Lewin said.
In addition, underway is an aggressive junket program, designed to gain broad exposure to potential customers out of Atlantic City, Florida, Las Vegas, and Mississippi.
"So we really have to not just deal with the high-rollers that are regionally available, but we have to become more of a destination for a gaming-profiled customer."
Customers at all levels can take advantage of reward programs, and the Fallsview and Casino Niagara properties share the Players Advantage Club, which has over two million members in its database. In the past, the casino has relied on direct mail to share offers with customers, but recently began using e-mail as well.
"(The players club) is really a very critical part of our success," Lewin said, adding that the program is undergoing some changes now to make it even better.
Also being developed is a sophisticated customer relationship management program. The challenge is finding out how to give more people exactly what they want, without seeming to provide too many offers.
"How do we get better acquainted with our guests?" asked Lewin. "It's a real difficult situation, because all of these places get bigger and bigger.
So how do you get more personalized when you are getting bigger and bigger?"
As the industry tries to answer those questions, the show must go on. And despite the competition, despite the slowdown in American customers, Fallsview is worth its lofty price tag, Lewin opined.
"It has developed jobs, it is a positive property, it is generating a positive return. I think it is good today, and it will be better in the future."
Niagara Fallsview Casino Resort is the most ambitious of Ontario's casinos
By Patricia A. McQueen
It was known as the place for honeymoons and romantic getaways, and the place where thrill seekers in barrels hoped for the ride of their lives. The Niagara Falls area, straddling both the United States and Canada, is home to one of nature's most stunning attractions, but even that couldn't stop an economic downturn as industries moved out of town and the city centers declined.
But that has all changed thanks to casinos and the millions of dollars of investment they've brought. Nobody's joking about Niagara Falls anymore.
The latest, and most ambitious, player on the scene is the Niagara Fallsview Casino Resort, the third full casino in the greater market area that also includes two racetrack casinos, one on each side of the U.S./Canadian border. Fallsview was originally intended as Ontario's permanent casino in Niagara Falls, to replace the Casino Niagara, which opened as a temporary facility in late 1996. However, the provincial government has so far decided to keep both facilities open.
They face competition from a third casino, Seneca Niagara, on the U.S. side, and another Seneca casino is planned for nearby Buffalo. Clearly the competition is intense, but the C$1 billion Fallsview currently stands at the head of the pack in terms of amenities and design.
"The concept was to build something that was the must-see attraction in a must-see part of the world," said Larry L. Lewin, president of Niagara Casinos for the Falls Management Company (FMC).
Fallsview opened in June 2004, and is operated by FMC on behalf of the Ontario Lottery & Gaming Corp., which is responsible for all gaming in the province. The property is the largest privately-funded commercial development in Canada, and sits on a 23-acre site overlooking both the Horseshoe and American Falls.
It includes a 200,000-square-foot casino with a poker room and a high-end gaming room, numerous restaurants and clubs, a 374-room hotel, a 50,000-square-foot convention center, a performing arts center, and a luxury spa and health club. And taking a cue from Las Vegas, Fallsview includes a 100,000-square-foot shopping mall in the center of the facility.
The hotel is on the small side for such an ambitious property, but that was by design.
"It was kept small so that we would work very closely with other hoteliers in the area to help support total tourism in the area and not just for a specific property," Lewin explained.
While he acknowledges that Niagara Falls may not necessarily have needed or demanded a property of Fallsview's scale, Lewin thinks it will have the same effect on the region as The Mirage did on Las Vegas.
"When Steve Wynn opened that, it was the start of the re-creation of what is now Vegas today. We have a unique property-people come in and are stunned by it. It's a lot of Las Vegas in a place outside of Las Vegas. And it's in a market that wasn't really known for anything other than the Falls and was somewhat declining. Now it's revitalized. This market is growing tremendously."
Casino 'mirroring' trends
Customers entering Fallsview's spacious casino will find 3,016 slot machines, 134 table games, and nine poker tables. The casino doesn't play favorites with vendors, offering games from Aristocrat, AC Coin & Slot, Atronic, Bally, IGT, Konami, and WMS Gaming. About 5.5 percent of the machines are leased or participation games such as Wheel of Fortune and Monopoly, but that number varies as performance changes.
Fallsview's slot machines are all coinless, or ticket-in/ticket out (TITO), but Lewin noted that Casino Niagara hasn't yet made the conversion to TITO machines.
"I think the industry will become totally TITO, that's the wave of the future," he said.
That seems inevitable, but there is one problem. Although most regular slot players seem to prefer the TITO machines, casual players looking for the "gaming experience" don't get the noise factor of dropping coins, he noted.
"We as operators have to figure out how we can bring the excitement of winning back into the casino," Lewin said. "People don't perceive that there are as many winners as before" without the coins.
The casino's slots mirror the trends seen in many other casinos, in that players are going for multi-line, multi-coin games. Nickel and penny denomination games are very popular, but players are averaging about 22 coins per handle pull on nickel games, and about 40 coins on penny games.
"The industry has changed into people playing lower denominations, but they like the new video multi-line combos," Lewin noted.
Penny or nickel games account for about 23 percent of the slots on the floor; quarter machines are almost half of the floor.
Players also like the high-end progressive jackpot games, and last year Fallsview had Canada's largest-ever Megabucks jackpot winner when a player hit for C$5.7 million.
Of the casino's table games, the most popular is blackjack, with 67 tables. Baccarat is next, with 15 tables including variations of that game. The rest of the tables run the gamut of typical casino games, such as craps, roulette, and several kinds of poker. There is also a nine-table poker room.
Playing the market
Having the right gaming mix in a casino is only a small part of getting players to the facility in a competitive market. While Fallsview's amenities make it unique among the gaming properties in the area, it doesn't automatically mean people will visit.
The issue is complicated in Niagara Falls by border issues and the U.S./Canada currency exchange rate. Lewin noted that last year, the U.S. dollar weakened considerably, making it less attractive for Americans to play in Canada. Border crossing issues have also influenced potential visitors, with the perception being that crossings are becoming more involved. Add to that the July terrorist bombings in London, and "people are skittish," said Lewin.
"So we have seen visitation from the American side decrease, not just at our property, but all the hotels around here."
He estimated that about 30 percent of Fallsview's customers are now coming from the United States, certainly a lower percentage than had been anticipated when the property was designed.
"We are much more dependent on a Canadian market, so we're fighting for marketing share against Casino Rama, Woodbine, Fort Erie, Flamboro, and Mohawk."
To win those customers, Lewin knows it's all about customer service.
"Attitude, service, and comfort," he said. "If someone's looking for a slot machine, they don't necessarily need to come here. If they are looking for an experience, they'll make the choice to come here."
With Fallsview's limited number of hotel rooms, the property has to rely on day-trippers to a great extent. People need to have reasons to visit the area, and there is continuing investment in the Niagara Falls area to provide those reasons, to rekindle it as a top tourist attraction. For example, new golf courses are being developed, and Casino Niagara is building a water park.
To attract more American customers, a new television advertising campaign ("Experience Something Special") was introduced.
"We're going to get much more involved inside the different communities on the U.S. side, specifically speaking of the Rochester, Syracuse, Buffalo, Cleveland, Pittsburgh, and Erie markets," Lewin said.
In addition, underway is an aggressive junket program, designed to gain broad exposure to potential customers out of Atlantic City, Florida, Las Vegas, and Mississippi.
"So we really have to not just deal with the high-rollers that are regionally available, but we have to become more of a destination for a gaming-profiled customer."
Customers at all levels can take advantage of reward programs, and the Fallsview and Casino Niagara properties share the Players Advantage Club, which has over two million members in its database. In the past, the casino has relied on direct mail to share offers with customers, but recently began using e-mail as well.
"(The players club) is really a very critical part of our success," Lewin said, adding that the program is undergoing some changes now to make it even better.
Also being developed is a sophisticated customer relationship management program. The challenge is finding out how to give more people exactly what they want, without seeming to provide too many offers.
"How do we get better acquainted with our guests?" asked Lewin. "It's a real difficult situation, because all of these places get bigger and bigger.
So how do you get more personalized when you are getting bigger and bigger?"
As the industry tries to answer those questions, the show must go on. And despite the competition, despite the slowdown in American customers, Fallsview is worth its lofty price tag, Lewin opined.
"It has developed jobs, it is a positive property, it is generating a positive return. I think it is good today, and it will be better in the future."
