Quote:
Originally Posted by Baghil
You both make valid points. One of you is focussed on leaving $ on the table by not welcoming a distinct market into the casino while allowing that market to fuel underground games and markets like LV. The other if focussing on RATE of return, not ABSOLUTE return. The thinking is that there is limited space at a given casino, and maximizing profits means maximizing the ROI on the limited amount of square footage available.
Both concepts are very relevant in the business world, but we don't know precisely how the decisions are made in a quasi-privately operated business environment we have here in Ontario. If it were a genuinely competitive market like in LV, the former would likely reign as nobody would leave a dime on the table. Someone would operate in every niche area if there was a dollar to be made.
In Ontario, it's a different game, and I'm afraid that the focus is on rate or return for the limited casino space.
This is over-simplifying things as there are many other factors but my point is, you both have very valid views and should stop beating yourselves over the head.
I agree with your analysis, but not your conclusion. You're totally correct, he's mainly concerned with margin, and I'm asking why sales considerations cannot be added on top of margin concerns. From my perspective you take ALL orders, regardless of margin, so long as it's the most you can get, it's not cannibalizing your other business, and it's at a positive margin. I think poker at Ajax Downs ticks all those boxes. I think GCG is biased and lazy, and I think they're super comfortable cause they've never been exposed to real competition, and they're happy making their current high margins. Throughout my life I've had a front row seat to comfy Canadian companies doing a comfy business in the Canadian market, then inevitably the Americans show up and crush them cause they don't give a **** about anything other than closing the deal. Then the Canadian companies cry after the fact and start talking about things like fairness. I see this attitude relected in GCG's attitude to poker. If there was a second casino license in the GTA, and it was held by Caesar's or MGM, GCG would either not have the attitude they currently have towards poker, or they'd not be in business.
The more of a monopoly a business is, the more it worries about margin & less about sales, and we're looking very much at a monopoly situation here. Not only is it a monopoly, but it's a government sanctioned monopoly, which is the worst kind. GCG knows that the Ontario gov't has their back, come hell or high water. So there's very little incentive for them to be responsive to their customers.
But again, what's involved for them to go capture those extra dollars? A little negotiation with the province? Hiring more people in Pickering? Last I heard there were unemployed people there...
Me, as a customer, have very little recourse in this scenario. My basic recourse is public pressure, which I'm employing. Hopefully it encourages GCG to get off their ass and give this issue a more thorough unbiased evaluation.
Last edited by Buggle; 02-20-2020 at 02:40 PM.