Sure the magazine business can be a crap shoot. But editors and publishers of periodicals about gambling believe that their niche market is a sure thing. As legalized gaming rejuvenates ghost towns, turns Native American chiefs into millionaires and transforms urban waterfronts into dockside Monte Carlos, the revenue it generates is growing--to $484 billion annually. The ever-increasing profits have spawned an ancillary industry of trade and consumer magazines that keeps players, as well as casino management, up to date on trends and opportunities.
Sitting in an office not far from the Las Vegas strip, Adam Fine glances out his window and takes in the city where casino gambling began for Americans. The expanding market for Fine's consumer and trade magazines--the monthly Casino Journal and Casino Player, the bimonthly Nevada Hospitality and the weekly "The National Gaming Summary" newsletter--is evidenced by the cramped state of the publications' headquarters. "We're busting out of here," says Fine, who serves as editor in chief for all the titles, published under the umbrella of Casino Journal Publishing Group.
Fine and his brother Glenn, who serves as the titles' publisher, attribute the magazine's growth to the explosion of gaming across the country, as well as to Vegas' family orientation. "Had gambling just stayed in Las Vegas and Atlantic City, there would be nothing to talk about," he says. "But gaming has had tremendous expansion, and my key growth is the new jurisdictions, places where people need to learn about it. Of course, that has also opened up advertising opportunities for us."
Over the last 10 years, Casino Journal Publishing has expanded into a company where ads sell for $3,685 for a four-color page (in Casino Journal). That rate is remarkable only when you consider that the Fines originally launched Casino Journal as a 32-page monthly tabloid aimed at fellow casino workers (Glenn was an Atlantic City dealer until the mid 1980s). Now loaded with ads from casino operators and slot-machine manufacturers, the flagship title has spun off three more publications: Casino Player (aimed at gamblers), Nevada Hospitality (for regional restaurateurs and hoteliers), and "The National Gaming Summary" (a newsletter for casino owners/investors).
Even though 70 percent of the U.S. population gambles (meaning that they at least play state lotteries), the Fines' Casino Player has had a tough time attracting mainstream advertisers. "It's been a hard sell to the automobile and tobacco industries," Adam Fine admits. "We've approached RJ Reynolds, and our circulation [at 250,000] is good enough for them, but they do not want to be seen supporting gambling. Cadillac? It's the same thing."
Don't weep for the Fines, though. Casino Journal Publishing and its competitors have other revenue sources. "We custom publish a magazine for the 13,000 employees of Boyd Gaming Corporation," says Adam Fine. "The custom magazines are extremely profitable. We know what the casinos are all about, and we can produce the magazines from start to finish."
But doesn't such a tight relationship with the industry compromise editorial independence? Adam Fine insists that there is enough money around so that he can afford to ruffle an advertiser's feathers--even those of a major advertiser. "We lost all of our Trump advertising after we ran an article about how his [casinos'] slots are not loose," recalls Fine. "[Donald Trump] was furious and he pulled all his advertising. But he's since come back to Casino Journal. We lost $180,000 out of Casino Player, but at least we kept our integrity."
Betting on the trade side
Born during gambling's early boom years in the 1980s, New York City-based International Gaming & Wagering Business has positioned itself as a publication that examines the bigger issues. It works hard to be a serious business journal--in spite of its deriving a good deal of its revenue from operating trade shows and creating show guides.
"I'm a former Las Vegas newspaper reporter; I've spent years covering the industry," says Las Vegas bureau chief Jeff Burbank, who also serves as editor of Nevada Gaming Newsweekly. "The writers and I, we all consider ourselves to be extremely objective. We cover legalized gambling as a political issue, a business issue and a consumer issue." Unlike some of its competitors, the magazine doesn't shy away from reporting on gambling's seedier side. "The infiltration of crime families [into legalized gambling] is a regulation issue, and we cover it pretty extensively," notes Burbank.
International Gaming's ability to separate advertising and editorial concerns--thus establishing a reputation for credibility that makes it a must-read in the industry--stems from the fact that most of its ads come from casino suppliers rather than the casinos themselves. The top-three buyers for its $7,025 four-color ad pages are slot-machine manufacturers who clearly believe that the magazine's relatively small readership (about 26,000) is suitably influential.
Part of the magazine's appeal is its international scope. Given Playboy Enterprises' recently obtained casino license on the Greek island of Rhodes, and Greece's commitment to issuing additional casino licenses this year, overseas coverage is of great interest to stateside casino executives who recognize international expansion as a potential bonanza.
The aura of a winner
From a publisher's perspective, however, the growth opportunity may lie in magazines aimed at gamblers themselves. A few independent, niche-oriented publishers believe that there is a huge untapped market of people who will read anything they believe will enhance their chances of winning money at the tables, the slots or even at the Lotto agent's counter. Although, as the Fines point out, mainstream advertisers--cigarettes, automobiles and liquor--are queasy about being associated with gaming, the casinos themselves and other gaming-related ventures are more ready sponsors.
The possibility of tapping the potential endemic advertising has not been lost on three consumer titles: New York City-based LottoWorld (aimed at the $34 billion market of American lottery players), the Las Vegas-based Card Player (aimed primarily at poker players, although bridge, blackjack and gin are covered), and the Fines' Casino Player.
Of the three, LottoWorld has enjoyed the most visible success. "We're the TV Guide, National Enquirer, People and manufacturer's handbook for lottery players," gushes its editor in chief Rich Holman. "We have columns from lottery directors, we do stories on the suddenly rich, and we also have columns from prognosticators and psychics." Straight-faced, he adds, "We've been working with the Amazing Kreskin, who writes about moods and auras. The idea is to cover all the possibilities."
LottoWorld went public in March 1995 (it's traded on NASDAQ as LTTO), and the resulting cash has gone into enhancing its production values. In recognition of its new face, it was picked up for distribution by Hearst. A handsome, digest-size publication, LottoWorld is aimed at the mass market. The magazine carries ads--at $7,750 for a four-color full page--for Kool cigarettes, Stone Street Capital (aimed at newly wealthy winners), and the magazine's own Lotto-predicting 900-numbers.
Holman estimates current circulation at 150,000 (an ABC audit is pending), a figure that is more than double its previous level, following the magazine's first-time presence in the Publishers Clearing House stampsheets. By the turn of the century, Holman anticipates, lottery tickets will be available everywhere except Utah and Nevada--and that's great news for LottoWorld.
Nonetheless, LottoWorld's winning ticket may ultimately be other lottery-related vehicles. Although the magazine itself is nowhere near peaking, Holman talks about launching a "Lifestyles of the Rich and Famous"-type show (Robin Leach's former producer is involved), as well as a customized, controlled-circulation magazine with seven-figure distribution. "We plan on doing a unique magazine for each state--covering its lottery scene and making it available [free of charge] wherever lottery tickets are sold," explains Holman. "By next year, it should be out in 12 to 14 states, with a total circulation of about four million." Holman insists that the new magazine "will not cannibalize LottoWorld."
You gotta know when to hold' em ...
