Four Risks on Which Hotel Casinos Can't Gamble
By Sean Young Associate Vice President, Distinguished Programs | January 2020
Owners of hotels face numerous risks on a daily basis, but for operators of hotel casinos, the amount of risk exposure rises faster than a progressive jackpot on a slot machine.
From an insurance standpoint, casino hotels turn the tables on the traditional hotel risk management equation. Limited service or mid-scale, business class hotels tend to be transient, with guests checking in and out constantly. Even when they're on site, guests at these hotels perpetually prepare to leave, whether it's to visit with family, enjoy a lunch date, catch a movie or head to a business meeting. That's why these hotel classes tailor their services around efficiency.
But with hotel casinos, the opposite is true. Here, the casino is the biggest attraction. That means guests stay on site longer, which raises overall risks. Hotel casinos almost always also include bars and live entertainment. Alcohol increases risks for on-site incidents and altercations, as well as off-site liquor liability. And an events center means mass gatherings, a hot-button issue for insurers with the 2017 Mandalay Bay shooting still fresh in everyone's minds.
Not all risks are equal. Let's explore the four biggest risks hotel casinos face:
1. Wrongful Actions From Vendors
Almost every hotel casino contracts with transportation firms and security companies. They also may partner with vendors to provide additional activities for guests-everything from scuba driving and snowmobiling to helicopter rides or airplane tours, depending on your location and climate.