The Decline of Live Keno Lounges: A Shift in Casino Operators’ Approach
The closure of one of the last live keno lounges on the Las Vegas Strip has brought attention to the changing business approach of casino operators towards the game. Live keno lounges have been a staple of the Las Vegas casino experience for decades, but in recent years, they have been disappearing. This shift reflects a broader trend in the casino industry as operators reassess the value and financial viability of maintaining these lounges.
Dwindling Options for Live Keno Lounges on the Strip and Downtown
The options for live keno lounge players are dwindling both on the Strip and downtown. Caesars Entertainment recently closed the keno lounge at Harrah’s, directing guests to play at Horseshoe resort-casino instead. Downtown has also seen the closure of keno lounges at properties like El Cortez and Fremont. Even Station Casinos, which operates several keno lounges in the Las Vegas Valley, chose not to include one in its latest resort, Durango. Data from the state’s Gaming Control Board shows a 69% decrease in licensed keno locations in Clark County compared to five years ago.
Factors Behind the Closure of Live Keno Lounges in Las Vegas
Several factors contribute to the closure of live keno lounges in Las Vegas. One major reason is the declining interest in the game, particularly among younger gamblers. Keno is often seen as a slow-paced, lottery-like game with a strong house edge, making it less appealing to a generation seeking faster-paced and more interactive gaming options. Additionally, the COVID-19 pandemic has impacted the lounges as some long-time players passed away or avoided traveling.
The Financial Realities of Live Keno Lounges: Labor Costs and Revenue
Operating live keno lounges is labor-intensive and costly for casino operators. The labor costs associated with running these lounges, similar to poker rooms, have been steadily rising. Furthermore, the revenue generated from live keno games is lower compared to video keno games. Video keno games have more machine units, allowing for faster play-through and higher revenue generation. As a result, maintaining live keno lounges becomes financially challenging for operators unless they have a compelling product that justifies the costs.
The Importance of Live Keno Lounges in Comprehensive Casino Offerings
Despite the decline of live keno lounges, some operators understand the importance of maintaining these spaces as part of a comprehensive casino offering. The D, Golden Gate, and Circa casinos in downtown Las Vegas continue to operate live keno lounges. While the revenue generated from these lounges may not be as high as from video keno games, they still play a significant role in attracting and retaining a specific demographic of players. For these operators, the focus is on creating a well-rounded casino experience that includes traditional gaming options like keno.
In conclusion, the closure of live keno lounges in Las Vegas reflects a shift in the casino industry’s approach to the game. Factors such as declining interest, the COVID-19 pandemic, labor costs, and revenue considerations have influenced operators’ decisions. However, some operators recognize the importance of maintaining live keno lounges as part of a comprehensive casino offering, catering to a specific demographic of players. As the industry continues to evolve, it remains to be seen how live keno lounges will be positioned in the future casino landscape.
Analyst comment
Neutral news:
The closure of live keno lounges in Las Vegas reflects a changing approach in the casino industry. Factors such as declining interest, the COVID-19 pandemic, labor costs, and revenue considerations have led to these closures. However, some operators still recognize the importance of maintaining live keno lounges to attract a specific demographic of players. The future positioning of live keno lounges in the casino landscape remains uncertain.
