Mission and Objectives
A mission statement for Circus is not explicitly stated by management in its Annual Report to the Stockholders. However, management does state, "Circus Circus Enterprises, Inc. is in the business of entertainment, with its core strength in casino gaming."
In order to achieve its mission, the company has apparently established long-range strategic objectives centered on continued renovation and expansion to become the largest competitor in the Las Vegas market (in terms of casino space, rooms, and visitor attraction). This has resulted in short-term decreases in revenues but with potentially significant long-term gains.
In Las Vegas, Circus competes with over 20 major casino hotels and a few smaller casino motels. In Reno, Circus competes with about 12 major casinos and numerous smaller ones. In Laughlin, Circus competes with 8 other casino hotels.
The majority of Circus's Las Vegas business comes from southern California and the southwestern United States.
The majority of business for Reno comes from northern California and the northwestern United States. Arizona and southern California are the source of the majority of business for Laughlin.
Gaming has expanded dramatically in the United States in recent years in the form of lotteries, riverboats, Native American gaming ventures, and others. This increase in competition has had a dramatic effect on the outlying casinos and will continue to effect Las Vegas, but probably to a lesser extent.
In Nevada, the ownership and operation of gambling facilities are subject to strict regulation. The company is subject to the licensing and regulatory control of the Nevada Gaming Commission, Nevada State Gaming Control Board, and Clark County, Nevada Gaming Authorities. Almost all loans, leases, sales of securities, and other financial transactions must be reported and in some cases approved by authorities. Participants in the casino...