When I say “casino”, what’s the first thing that comes to mind?

Probably for most of you, it’s money. Actually more like MONEY. Money being spent, won and lost at breakneck speed. And although you’ve possibly had trips to Vegas where you were up against The House (and ask a gambler, and they’ll always tell you stories of their best day, never their worst), we all know that sooner or later, most of that money ends up in the hands of the casinos. The House always wins. Those sinking pirate ships, opulent art collections and magicians don’t pay for themselves.

So, the fact that even casino revenues and profits are down in this recession and that these once lavish spending companies are adopting spend management to maintain their margins, we know that this concept of the New Normal in business is legit.

In all seriousness, successful casinos have probably always watched their money very carefully. But I can’t help but suspect that the steady stream of revenue let many get by without having to focus on extracting maximum value out of every dollar spent. Those days are over - either due to declining revenue or the demands of shareholders. And despite the magic in Vegas, the spend management genie will never be crammed back into her lantern. Once companies have tasted cost take-out, reduced risk and increased value, they’re unlikely to return to free-wheeling spend habits.

Personally, I just hope to see RFXs for some uniquely casino spend categories. Anyone know a good supplier for poker chips?

Justin Fogarty is Managing Editor of Supply Excellence. For any questions or feedback on the blog or its contributors, Justin can be reached at jfogarty[at]ariba.com.