Place Your Bets on Sustainability for Increased ROI

Make Real Efforts Towards Building Eco-Conscious Practices

In the past, hospitality has struggled with establishing a strong relationship with sustainability, and despite its growing place in the industry, especially from an operational standpoint, there is a challenge in keeping pace with other industries that, through substantial efforts, continue to outshine hospitality.

The gaming industry is no different. As a subset within hospitality, it experiences the same struggles, which are extremely problematic considering the active environment of a gaming space. With guests coming and going and utilizing the various services that require important resources such as energy, water, and food, the potential for waste and excessive consumption is high, though certainly not intentional.

Furthermore, the modern consumer has begun to lean more and more towards a sustainable lifestyle and appreciates companies and organizations that make real efforts towards building eco-conscious businesses. With this, and considering the high patronage of a gaming facility, it’s important to consider the desires of today’s consumers and make operational decisions based on these desires.

But what does that mean for cost? The idea of rethinking operations to potentially invest in something that might feel foreign will make any gaming decision-maker squeamish. However, at the end of the day, the gaming industry, just like any other in hospitality and beyond, is built around revenue, and while taking steps towards sustainability may sound like a revenue crusher, long-term ROI tells a different story.

Hospitality and gaming of the past and present

There’s no way to sugarcoat it: Hospitality has been a big culprit in adding to serious environmental issues, especially in terms of greenhouse gas emissions. In fact, about one percent of global emissions come from the hospitality industry due to significant energy consumption, transportation, waste, and much more, which, unfortunately, has affected our environment in a number of detrimental ways.

In that same vein, the gaming industry claims its share of negative contributions to the environment. One of the most notable issues is around energy management, which comes as no surprise considering that 24/7 operations require large amounts of energy for lighting, heating, and cooling. Materials used in daily operations are major contributors to landfills due to significant waste generation, especially paper and plastic, for slot machines and other gaming equipment, as well as discarded food.  Air quality is severely compromised due to exhaust fans that could potentially contain carcinogenic substances, such as carbon monoxide and particulate matter.

Moreover, the production and use of gaming hardware, such as consoles, computers, and mobile devices, require significant energy. Gaming is also problematic from a sustainability standpoint in that it contributes to carbon emissions through energy consumption via gaming hardware and data centers.

Energy consumption is expensive, and with the global gambling market predicted to reach $1 trillion by 2030, time is of the essence in adopting sustainable practices.

Who’s already on board?

In some cases, it takes the major steps of others to bring about change to inspire others to follow suit, and in the gaming world, several industry heavy-hitters have already moved towards sustainability. According to BetMGM and EcoFreek, efforts include:

  • MGM Resorts International: MGM Hotel and Casino in Las Vegas has solar panels installed on the roof that account for more than 90 percent of daytime energy provision, and MGM China has eliminated plastic straws and take-out packaging, which were previously estimated to amount to 860,000 straws and 470,000 boxes per year. Additionally, the MGM Grand has implemented various multiple water-saving initiatives.
  • Turtle Creek Casino and Hotel: Skylights installed throughout the building reduce energy consumption by as much as 50 percent.
  • City of Dreams Luxury Resort, Manila, Philippines: Solar panels, vermicomposting, and an on-site greenhouse to support the resort’s decorative plants all aim to make the resort carbon neutral with zero waste by 2030.
  • Silver Legacy Resort and Casino: Traditional lighting has been replaced with LED lighting.
  • Caesars Entertainment: Unused toiletries and bars of soap are donated to more than 100 countries.
  • Sibaya Casino and Entertainment Kingdom, Durban, South Africa: Improved efficiency of energy usage while reducing greenhouse gas emissions, waste production, and water use in alignment with the UN Sustainable Development Goals.
  • Bellagio, Las Vegas: A comprehensive water conservation strategy has been employed.
  • The Mirage, Las Vegas: Containers are filled with 65 tons of glass and recycled every five days.

ROI and options that promote sustainability

While an overhaul of operations, even some tweaks, may seem like a costly undertaking, there are some significant ROI benefits that result when putting efforts towards sustainability. Even through simple steps, gaming facilities can save money and ultimately be part of an important cause that more and more in the industry are beginning to adopt. A few ways to get started include:

  • Tap into green building and renewable energy.

Gaming facilities require a great deal of energy to operate, especially in their 24/7 nature, which in turn can be extremely costly. However, by turning to renewable energy, gaming facilities can revamp their infrastructures to become sustainable and cut down on energy costs by way of solar or wind power utilization. The Chumash Casino Resort is an excellent example as, according to the Environmental Protection Agency (EPA), it has installed solar panels, not to mention reduced water use by more than 50 percent since 2012 by reclaimed water in its landscaping, cooling, and water-conserving toilets. Additionally, gaming facilities can further assist with reducing energy consumption by cutting down on electronic slot machines and utilizing more in-person gaming options.

  • Move toward water conservation

Gaming facilities consume a massive amount of water, both operationally (such as for water features) and to accommodate patrons (such as for dining purposes). However, gaming facilities are poised to save more money and increase ROI by switching to fixtures and appliances that are more water-efficient (e.g., in the case of attached hotels, utilizing energy-efficient laundry equipment). In some cases, water can be reused, which is another avenue for water conservation.

  • Reduce waste and embrace recycling

Unfortunately, just by the nature of their operations, gaming facilities are a breeding ground for waste. A great way to get started in sustainability is for operations staff to assess the amount of waste going in and out of a facility, specifically glass, plastic, and paper. In this assessment, there will be an opportunity to determine where changes can be made.

Opportunities to recycle should be readily available and easy to act on, such as giving patrons the opportunity to discard waste in a recycling bin versus just a trash bin (where possible), which, ideally, others will emulate. Resort rooms should provide patrons with sustainable amenities, such as shampoo and conditioner, that help to reduce the amount of plastic that can quickly accumulate. Think of how many tiny empty bottles in a single week will add up in a large resort. In fact, the EPA reports that purchasing greener products and those with less packaging can significantly cut down on waste, so it’s essential operators take this to heart.

  • Sustainability in the kitchen

Did you know that food is the largest contributor to waste in the U.S.? However, such things as fats and oil can be recycled into biodiesel, an alternative fuel developed from renewable resources that can be used for cooking, lighting, and more. This fact is important to consider when one is preparing to discard what might seem like an unnecessary substance.

Another interesting way to avoid wasting food, which can equate to dollars lost, is by making menu selections smaller, which will cut down on the amount of food that expires. Replace paper towels with cloth towels, and look into investing in green appliances, like refrigerators and dishwashers, as they will consume less water and electricity, ultimately reducing a facility’s carbon footprint and saving money on utilities.

  • Rethink approaches to transportation

As mentioned before, biodiesel is an excellent source of energy that is incredibly sustainable in that it recovers energy by recycling waste oils that are either dumped in landfills or flushed down drains, known as “fat to fuel.” Gaming facility operators should also inform patrons about public transportation and shuttle services in the area, a surefire way to reduce emissions. While a bit more of an investment, consider opening electric vehicle charging stations. The use of electric vehicles has increased among consumers today, and the convenience alone will attract gaming facility users.

By employing these methods, as well as the myriads of others to explore, gaming facilities are setting themselves up for improved ROI, which, in time, will only increase as further adoption continues (especially as new sustainability advancements and options become available).

It takes a gaming village

Ultimately, the collective investment in sustainability, not just financially but also in a shifted mindset, will allow the gaming industry to become an active part of the solution. The benefits to this are clear: Not only will the industry join others in preserving the planet to support future generations, but it will also enjoy improved ROI across the gaming community. Now is the time for gaming facility decision-makers to revisit their business plans and determine if there are areas where sustainable efforts can amplify company profits, not just immediately but also in the long term.