GREEN SLOTS
by Eric Hansel
May 1, 2011
Green Equation: Saving $ = Making $
Watching the
Atlantic City revenue #’s continue to decline must be a harrowing site for the
operations managers, regional presidents, CFO’s… What I don’t understand is why as they watch their casino
hold decrease along with their revenue from casino/hotel operations overall,
why they don’t start to aggressively implement large operational cost savings,
that would serve to insulate them somewhat from the economic recovery issues and
regionalized gaming competition.
If a property saved 20 percent
of its overall energy bill, and that energy bill, for instance was originally
$8 million per year, that equals an operational cost savings of $1.6
million. My question to all of you
is how much revenue would you need to bring in so that your bottom line profit
is equal to that $1.6 million? Why
is the first option usually to lay off human capital? Don’t folks realize that using human capital is the best way
to generate new ideas, and by laying off human capital, you allow competitors a
shot at your potential great ideas.
Some of the agreements that
I hear about energy conservation measures are: Global warming is not real. To this I say, why is that important to you as you are making a decision about
saving money by doing a lighting retro-fit? This is obviously an excuse for not wanting to learn how
saving on energy will allow you to realize increase profit margins even as your
revenues drop(for whatever reason). I also hear from folks around the industry
that energy efficiency is a bunch of malarkey. To that I say, waiting for your
revenues to increase back to pre-recession/credit crunch #’s will take a long
time, and we need to realize the things that got our industry close to its
highs will not be the same things that get us back to those revenue/profit
numbers.
This is one of the reasons why the Sustainable Gaming Standard
Committee was formed, and why we have just released the standard through ANSI
(the American National Standards Institute) for its public comment period. To
our team, it seems like the next logical step in the progression of the
land-based casino market. If you
can save 10 percent of your slot floor's energy bill by adhering to this
standard, and it will improve your customers experience, why not take advantage
of it? There is no reason why any establishment with electronic gaming machines
shouldn’t take advantage of this.
Imagine that you have 1,000
electronic gaming machines on your floor right now, and within one year, those
same or better machines will be on your floor performing the way you and the
player want, and on top of that you
wind up with a savings of 10 percent off of your total slot floor's
energy bill. That is a pretty powerful savings, and when you consider that the
only thing you will have to do is request gaming machines that meet our
standard. As gaming floor progress
toward more server based gaming, this standard will help top save even more
money based on the increased energy demand of the central server, and how we
can creatively meet that need without using any extra
energy.
Adherence to the standard
will set you apart as an industry leader in sustainability. Do you believe that long term operational cost saving s will allow
you to earn a greater profit margin on your existing offerings even in times of
declining/flat revenue. Then the
time is now to start your journey down the path to a sustainable property. We make that decision easy, by allowing
you to still use the machines that you and your players
love.
In closing as a long term New
Jersey resident, and someone who has loved Atlantic City for a long time, it
boggles my mind that those properties allowed this marked decline on their
revenues/casino hold/profit margins, and didn’t follow the “LEED” of other
properties around the country that have proved with empirical data that going
green puts them in the black! I
would love it if you would take some action after you are done reading this.
Make a comment on the standard before the public comment period ends. Then adopt the standard in your
property. Call on us to help you
to meet the standard to save as much as possible while doing it.
Ten or so years ago, our industry went through a huge change
when properties became these mega resorts, and now the industry has been facing
some unique challenges that make continuing with this plan as it was set up all
those years ago just plain fiscally irresponsible. We need to adapt to these changes
or accept that we will not be here for very long. SlotManager
Eric
Hansel is chairman of the Sustainable Gaming Standards
Committee and founder of EGM Green. EGM Green designs and manufactures
eco-friendly casino tables and furniture and also provides LEED services and
green consulting for the casino industry. It also offers the only outsourced
CSO (chief sustainability officer) position in the gaming industry. He may be
reached at eric@egmgreen.com.
Eric Hansel
Eric Hansel is chairman of the Sustainable Gaming Standards Committee and founder of EGM Green. EGM Green designs and manufactures eco-friendly casino tables and furniture and also provides LEED services and green consulting for the casino industry. It also offers the only outsourced CSO (chief sustainability officer) position in the gaming industry. He may be reached at eric@egmgreen.com.
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