Question of the Day - 27 May 2019

[Editor’s Note: For this question, we naturally went to Deke Castleman, author of Whale Hunt in the Desert, the only book ever written that examines the lifestyles and motivations of the world's wealthiest wagerers. Here’s what Deke has to say.]

This is an easy one, since the answer is an unqualified no. It’s like asking if Walmart might suddenly transform itself into Harrod’s. It would require nothing less than a 180-degree turn, not only in infrastructure, but also in product, finances, marketing, systems, culture, and image.

Let's look at an example.

In order for, say, Circus Circus to bring in the whales, it would have to completely reinvent itself. It would have to start with whale digs, the kind you find at the Mansion at MGM, the Palazzo Villas at the Rio, the Sky Villas at Aria, the Presidential Strip-View Suites at the Four Seasons, and the new super-suites at the Palms. Then it would need exclusive restaurants, an expansive pool area, a world-class spa, and high-end shopping — all so that the whales would feel at home.

On top of that, a high-roller pit with tuxedoed dealers and bosses, the finest liquor, and the best service are just the beginning. Then there are all the finances involved in the deal: show-up and promotional bonuses, discounts on losses, international collections, big-time comps, and the cojones to fade the enormous swings of fortunes that come with the territory and can, in a weekend of winning or losing $100,000 to $250,000 bets at the baccarat tables, have a dramatic impact on a casino corporations entire quarter.

Now ol’ Circus needs an international marketing department to hunt the whales all over the world and a cadre of sophisticated hosts (and party planners and credit managers and travel agents) to handle these demanding souls and their entourages.

Add in a handful of private jets, a fleet of limos, private chefs, butlers, working girls, and security and you’re no longer Circus Circus. You’re the Kingpin Casino.

The Palms is another good recent example. It was a pretty classy joint previously, but to compete with the big boys on the Strip for the international high-roller trade, it had to spend upwards of $700 million, which to my knowledge is the most money ever invested in a remodel of an existing casino in Las Vegas history. That three-quarters of a billion dollars went to the "little" things that might attract a prince of Brunei, an industrialist from Shanghai, a banker from Mumbai, or a queen from Versailles.

We’re talking tens of millions in contemporary art alone. Celebrity chefs, the state-of-the-art Kaos nightclub and dayclub, the 9,000-square-foot Empathy Suite (which retails for $100,000 a night, two-night minimum), superstar entertainment, and all the behind-the-scenes machinations that catering to the world’s one-thousandth of one percent necessitates.

And even then, the Palms can barely compete, in my opinion, with the likes of Caesars, which pioneered the international whale business, MGM Grand, Venetian, Wynn, and a few others.

Kmart or Bergdorf Goodman? It’s one or the other.