[My Sun City Summerlin-BLOG] Gaming Contract from the Gaming Vendor's perspective

Ms. Barbara Cogar, SCSCAI-Executive Director

Barbara, September 5, I sent you, with a Cc to the Board the attached memo requesting clarification of the rational used with the Agenda item, X-2. Discussion and motion regarding extending or renewing Templeton Gaming Corporation's lease. I am disappointed but not surprised this request was ignored; this has been the normal procedure of the Board. By ignoring the memberships request for clarification, the Board has the appearance of covering up financial dealings that affect all the membership of this HOA.

Barbara, I want to be clear, that I appreciate all the arrows you dodged on behalf of the Board. The Board has to be accountable to the membership.

Dwain Kramzar    

(702) 582-8064

Ms. Barbara Cogar, SCSCAI-Executive Director

Barbara, I would like to follow up on our brief conversation before the September 4, 2012 Board meeting. I shared three concerns pertaining to our community. I am confident you will address these concerns, however after setting through more than three hours of rambling discussions I found it hard to understand the Board logic when making decisions that affect the membership of SCSCAI, particularly the rational used with the Agenda item, X-2. Discussion and motion regarding extending or renewing Templeton Gaming Corporation's lease.

This prompted me to forward you My BLOG titled; Gaming Contract from the Gaming Vendor's perspective. It appears that anyone with any experience with these types of arrangements are that our Board members are more concerned with the Vendor's interest than the Memberships interest.

Barbara, if there is a need for any clarifications do not hesitate to give me a call.

Dwain Kramzar

(702) 582-8064

Gaming Contract from the Gaming Vendor's perspective.

by Dwain Kramzar

 This perspective is derived from my forty-five years of negotiating hundreds of  Vendor contracts, both written and oral, with Bars & Pubs.(Sales) These contracts are an agreement entered into voluntarily by the Vendor and the Location with the intention of creating a profitable partnership.

Typically these partnerships are revenue sharing relationships (set % of revenues) this is were the Vendor agrees to supply the equipment, maintenance and service, the Location provides the floor space. This arrangement is the most beneficial to both the Vendor and the Location. Reasoning: 1. timely rotation of newer equipment 2. greater  promotional opportunities to maintain and increase revenues 3. a better quality of service and maintenance 4. performance based revenues; the more money the Vendor makes, the more money the Location makes.    

Another agreement would be where the Vendor leases floor space from the Location for a flat fee per month/year. The flat fee would be to the Vendor's advantage; reasoning being 1. the Vendor has knowledge of typical income from this type Location. 2. the Location normally receives less income compared to an revenue sharing arrangement. 3. the equipment has a longer Location life-span (less rotation of equipment, less appealing to players).

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Posted By Blogger to My Sun City Summerlin-BLOG at 9/05/2012 03:12:00 PM