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New Park Place CEO Sticks to Established Strategy25 November 2002LOS ANGELES – As reported by Reuters: "The new chief executive of No. 1 casino operator Park Place Entertainment (NYSE:PPE), elevated in a management shake-up last week, says the company will focus on operations and insists there is a strategy to unite its far-flung casinos despite Wall Street doubts. "Wallace Barr, formerly the chief operating officer, was named to the top job on Nov. 19 after Chief Executive Tom Gallagher abruptly quit. "The departure surprised few, given the 40-percent fall in stock price during the two years Gallagher ran the company, but many analysts wondered what would change under Barr, who has worked for Park Place and it predecessors for 20 years. "…`A lot of what has been said is we don't have a strategy, but we do, in fact,' Barr said. `We simply have a strategy that says we are going to be the dominant player in each of our nation's gaming markets and aggressively expand our non-gaming revenue base...Now our job is to execute the strategy that has been put in place.' "…The company also aims to cut $100 million in operating costs by the end of 2003, in part through centralizing purchasing and human resources, converting to cashless slot machines and using energy saving technology. "…In addition, Park Place is moving reservations to the Internet, a much cheaper way to handle clients than by phone. "The remaining question is how to stitch together the different brands. The main focus, from the guests' perspective, is a new card-based frequent gambling and patronage program Park Place is rolling out in Las Vegas and plans to make nationwide in 2003. "It is in limited use so far, but has increased cross-property table game revenue by half in the first three quarters of 2002, Barr said recently…" |