CenturyCasino is an international casino entertainment Company that majorsin developing and operating gaming establishments, as well asassociated lodging, restaurant and entertainment facilities aroundthe world (Alford, 1994).
Thecompany has a high affinity for growth and expansion to internationallevels and can achieve its vision of becoming the leading company inthe midsize casino market worldwide. Since its formation in 1992, ithas expanded into owning, operating and managing a number of casinosand hotels including twelve (12) ship-based casinos onboard fourcruise lines. It has a total of 423 slot machines and 53 tablesaboard the 12 cruise ships. The Company’s Casinos Poland owns andoperates nine casinos throughout Poland with a total of 412 slotmachines and 72 tables.
Thecompany has a sound financial history enough to realize its goals.For a period of 5 years ranging from 2009 to 2013, the company has anaverage gross margin of 7% on its sales. Although this is notsufficient to directly fund the much anticipated growth by thecompany, it is however substantial income to finance interestexpenses from additional expansion loans(Tegtmeier,1989).
Centurycasino is a socially responsible company. Its efforts include acorporate responsibility policy that dedicates human and financialresources to educate and build awareness to deter underage andproblem gambling at its casinos (Muto, 1997).
Inthe US and globally, has eight major stations inAmerica. Six of the stations are located in the United States ofAmerica, two in South America and one major station in Europe:Casinos Poland. The US is the major generator of the company’sprofits. It contributes 63% of the profits generated followed byEurope’s Casinos Poland at 31% and cruise ships at only 6%. Amongthe business segments, Gaming contributes the highest gross margin at36% in Casinos Poland, followed by Central city at 20% then Edmontonand Cripple Creek at 20% (Alford, 1994).
TheCompany should invest more outside the US by increasing gamingespecially in Europe and venture into other continents such as Africaand Australia. In addition, recognize its strengths and counter theweaknesses. The weaknesses in the gaming segment is gaming in Cruiseships and in Calgary USA. In the hotel bowling food and beveragesection: Casinos Poland in Europe has the least contribution tomargin profits. Amongst the strengths include the Gaming segment inCasinos Poland. In the Hotel segment, the strengths are in Edmonton.
Finally, operates on a very risky ground. The company facesamong others the risk of not keeping up with competitors, health andsafety incidents and site accidents engineering problems, includingdefective plans and specifications and poor performance ornonperformance by its partners or other third parties on whom itplaces reliance. This makes the gaming business appear very risky toimportant stakeholders like banks and other financial stakeholders.As a result, they may demand very high interest rates on loans to yto the company. Insurance companies may also demand very high premiumrates. This results into very high operational costs for the companywhich diminishes the profits available to shareholders (Muto, 1997).
TheCEO of the company is Dr Erwin Haitzmann. He brings a wide array ofknowledge and direction to the company which he has obtained duringhis 30years of experience. He has served as a dealer and went throughvarious casino management positions.
Alford,B. (1994, January 1). International Directory of Company Histories,vol. 5. BusinessHistory.
Muto,S. (1997). LasVegas: 16 hotel & casinos, 5theme restaurants.Tokyo, Japan: Shotenkenchiku-sha.
Tegtmeier,R., & Walter, M. (1989). Casinos.New York:Vendome Press :.