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Derek Stevens proves the timeless truth of the old Aesopian saying that one can judge a person by the company they keep.
Here’s a possible rewrite: “What’s interesting is that the Las Vegas casino magnate, who happens to be from Michigan, has a tendency to constantly keep others company.”
He demonstrates immense dedication to his entertainment properties in Sin City, namely The D, the Golden Gate, and the Circa – the latest addition to his collection.
Despite the ongoing pandemic, Circa has thrived since its launch in late 2020, primarily due to the unwavering support of Stevens. However, the question remains: Will Derek and his brother Greg, who work diligently behind the scenes as co-owners, eventually relocate Circa to Michigan?
For a local boy accustomed to tackling million-dollar questions with enthusiasm, here comes yet another one.
At a Derek Stevens property? You’ll see him soon
Stevens is fully immersed in every aspect of his property during business hours. Hearing Circa Sports operations manager Jeffrey Benson explain it is an exciting experience in itself. Stevens personally oversees everything, from the hotel and gaming to the food and beverage services and the captivating sportsbook on the property.
Even during his free time, he remains present.
Benson informed Playinmichigan that if you spend a sufficient amount of time on any of the properties, you are guaranteed to encounter him. He can be found at the bar, treating players to drinks, engaging in social interactions, and discussing business matters. Unlike other CEOs or owners in the gaming industry, he frequently makes himself available to both employees and guests, granting them exceptional access to his presence.
He is a contemporary trailblazer, bringing the concept of the traditional casino owner into the present era.
During his early days in Michigan, Stevens considered Grosse Pointe his home. However, the days spent at his Las Vegas properties now hold the utmost importance and seem to stretch on infinitely for him.
He expressed his admiration for this business, highlighting the exciting aspect of not having to go home at 6 p.m. Instead, he gets the opportunity to head down to the casino floor and engage in activities he genuinely enjoys. Having a few drinks, watching sports, and meeting new people are among the things he finds delight in.
“I constantly analyze numbers while the team remains dedicated, but the remarkable aspect is that we all have a genuine passion for our work. That’s what makes it beautiful. Spending 8 hours on a property can feel like an eternity if you dislike your job, whereas 16 hours can pass in a flash when you love what you do. Fortunately, we have the opportunity to pursue our true passions.”
Indeed, entertainment and sports are the passions that drive us. Among the emerging brands in the realm of sports betting in the United States, Circa Sports takes the spotlight. Originally established as a charming downtown hotel, complete with a sportsbook and an enticing swim-up area in the heart of Las Vegas, it has swiftly evolved into a flourishing betting enterprise. Expanding its reach beyond the Nevada borders, Circa Sports has acquired licenses in Colorado and Iowa, attracting an ever-increasing number of loyal customers.
However, the newest multi-million-dollar question is whether any aspect of that business will return to Stevens’ hometown in the Great Lakes State.
Circa Sports and Michigan sports betting: Will it be a match?
To answer the question of whether Stevens and/or Circa would enter Michigan sports betting, the process can be initiated by assessing the feasibility of their potential involvement.
Currently, there are no possibilities at the moment. While acquisitions within the industry may lead to opt-outs, all Michigan sports betting licenses have been allocated and will only be up for renewal every five years.
However, Stevens is currently content with this arrangement for several reasons. Firstly, Circa has made a conscious decision to carefully evaluate the markets it enters. Secondly, the manner in which Circa operates as a sportsbook also contributes to Stevens’ satisfaction.
Stevens expressed his belief that sports betting should adopt a lower hold percentage compared to the current practice. He disliked the extravagant bonuses that offer a substantial reward for minimal bets, such as receiving $100 if the Knicks score just one point. Such promotional tactics did not align with his traditional approach to sports betting. Stevens reminisced about the days when he would bet on the Yankees at -120 odds and the Red Sox at +110 odds, rather than encountering odds like -140 or +110.
To a certain extent, this principle can influence the initial phase of the puzzle. As it aims to function as a nostalgic sportsbook, the traditional low-hold percentages are not suitable for a market like New York (where Circa is not present). This is due to the mandatory tax rate of 51%.
Hence, to create an ideal working state, one must adopt the Circa business model within a regulated setting. Following this, it is necessary to establish a partnership with a casino to obtain an online presence. Circa initially operated in Nevada but has successfully expanded its operations to include Colorado and Iowa.
Where is Circa Sports looking to expand next online?
Benson’s responsibilities also include assisting in the expansion into new markets, and his perspective on other states aligns with Stevens’ depiction.
He stated that our team is currently small compared to other operators who have larger marketing budgets, operating budgets, and teams. Despite this, we are experiencing organic growth and are content and confident with that. We are focusing on states that offer favorable remote funding and remote registration components. As we expand our team and operations, we will explore opportunities in other states as well.
This brings us back to the topic of mission. It has been determined that Circa is currently unable to do so. However, there is a possibility that Circa could do so in the future. But then again, would it?
Stevens expressed his strong desire to be admitted to Michigan due to his connections in the state. In addition, he mentioned that he still wishes to enter the Michigan market due to its favorable conditions for operators. He also highlighted the advantage of not being part of the initial launch in Michigan, as it would save him from the intense competition and high marketing expenses.
In my opinion, the marketing expenditure in Michigan was excessively high considering the potential return on investment. Furthermore, I find the marketing expenditure in Michigan quite offensive, especially for residents of the state. It’s disheartening to watch the 11 p.m. news and witness a barrage of eight 30-second commercials, with a majority of them promoting sportsbooks.
Definitely not now doesn’t imply never.
Why Derek Stevens and a Detroit casino is a bigger stretch
There is a concise adage that states “never say never,” which applies to various aspects of one’s life. However, when it comes to Stevens’ company potentially acquiring an ownership stake in a casino in the Detroit area or Michigan, the possibility of never happening seems more likely.
Playinmichigan asked Stevens about the potential for thoughts of the Greektown Casino-Hotel’s sale to Penn National Gaming in 2018, and whether similar possibilities could arise in the future. While not explicitly denying it, Stevens indirectly dismissed the idea.
“We have a strong focus on entertainment. It’s about creating an atmosphere where people can unwind and forget about their daily worries or responsibilities for 48 or 72 hours,” he explained. “Our main objective is to ensure that when people attend, they have an absolutely amazing experience and enjoy the best time of their lives.”
In order to exemplify his point, Stevens elaborated on the various options available for entertainment in Las Vegas. He mentioned a thrilling Canelo Alvarez boxing match, an electrifying Rolling Stones concert, the array of events that take place at the city’s T-Mobile Arena, a captivating concert led by Circa featuring George Thorogood, and another mesmerizing performance by Rufus Del Sol.
That night in November in Sin City was just the beginning.
According to Stevens, the markets in Detroit and Vegas have some contrasting aspects. Although he has a fondness for his businesses in Detroit and maintains a residence there, his focus is on accommodating guests for longer hotel stays and organizing large events around significant occasions. On the other hand, what makes Vegas appealing is the constant influx of 100,000 visitors every day. Each day in Vegas brings new excitement as people experience the city for the first time.
Circa Sports: ‘For gamblers and by gamblers’
The entire Circa Sports team embodies a people-focused approach. According to Benson, the Circa attitude emphasizes the significance of small actions in creating significant impacts.
Benson or any other employee demonstrates their commitment to excellent service by personally escorting customers to various attractions within the Las Vegas property. This could be to the Stadium Swim, a unique bar spot showcasing lesser-known games on TV, or other areas outside the sportsbook that feature delightful hints of Detroit and Michigan. Visitors from Michigan will be delighted to discover familiar establishments like American Coney Island and Saginaw’s (a branch of Zingerman’s Deli) scattered throughout Stevens’ properties.
According to Stevens, numerous individuals who currently reside in southern California, Arizona, or even Vegas have previously lived in Detroit. However, they haven’t had the opportunity to experience the strong brands and loyal customers present in those places. This aspect has influenced our thinking process.
In addition to Nevada, the approach extends beyond that as well. Take a look at Twitter, where there is a consistent stream of responses to players and interaction with various types of sports bettors. Alternatively, in-person events are also utilized, where Circa’s vice president of operations, Mike Palm, frequently travels to Circa’s markets to actively participate in new customer engagement events.
Benson expressed that Circa Sports caters to and is run by gamblers. He believes that having individuals in prominent positions who are actively involved with Circa Sports helps people grasp our identity and connect with our endeavors. Benson believes that being authentic and enjoyable appeals to players, and he thinks that the industry often lacks the sincerity and openness that Circa Sports embodies.
Stevens is known for being transparent and open, both in his everyday interactions and when dealing with others on a personal level.
He emphasized, “Our top priority is to ensure that whenever individuals engage with our properties, they are completely amazed and have the most enjoyable experience of their life.”
