The casino industry is one of the most lucrative market segments, with global annual revenue reaching tens of billions of dollars.
Casinos are categorised as establishments where patrons can take part in various forms of betting and gambling. From these activities, the casino industry generates an impressive amount of revenue. According to Mordor Intelligence, the global gaming market is expected to reach a dizzying value of US$256 billion by 2025. Casino revenue trends have evolved over time, with several key factors contributing to this shift.
Appealing to a Younger Generation
Many casinos around the US have begun to shift their focus towards the younger demographic. Atlantic City is an excellent example of this since a third of the city’s casinos have suffered financially over the last 15 years.
Atlantic City was once a gambling mecca and is now trying to reinvent itself by focusing more on e-sports, video games, and skill games instead of the traditional casino fare. Family entertainment has also shot in popularity since more players are embracing activities better suited for people of all ages.
Players Frequent Casinos More Often
Even though players don’t spend as much money during casino visits, they come to the casinos more often. As casinos expand across Canada and in specific regions where there were no casinos before, there’ll likely be more players spending in the region of CA$200 during each casino visit. However, these players will be visiting casinos several times a month.
Casinos Face Stiffer Competition
Casinos compete with a “shared wallet”, which means that players spend their money across several different venues when visiting a gambling centre. This often results in gamblers using up their vacation money at numerous other competitors.
Since more casino operators are entering the market, casinos have had to invent new and creative ways to appeal to a broader range of consumers, providing them with all the entertainment they need under a single roof.
Gamblers Expect Rewards and Freebies
Generally, casinos don’t place sufficient value on hotel rooms on their property and focus exclusively on casino floors. However, it’s a known fact that those casinos that provide more rewards and freebies to their players tend to secure their return.
This could motivate players to visit casinos more often since they would be receiving discounts and rewards for staying at a casino hotel regularly. Adding more amenities like a spa that offers relaxation services or a children’s care area where kids can be overseen while their parents gamble, could also make casino resorts more attractive.
Social Gaming Game Changer
Virtually every gambler brings their mobile phone to a casino, and exploiting this communication medium is crucial for gambling venues. Encouraging patrons to participate in mobile wagers and social gaming could make a casino appear more attractive.
An excellent example of this is Wynn Players Club at Encore, which houses a social area where players can place bets via digital tables. This setup appeals to contemporary gamers and could help casinos transition their offerings towards games that are socially based on today’s gaming trends.
80-20 or 90-10 Rule?
The gambling industry relies on consumers that leave their discretionary income at gaming venues. These players spend significant income at casinos, as well as related amenities like restaurants, bars, and entertainment venues. These patrons may not necessarily occupy seats at casino restaurants since they want to get back to the gambling floor as soon as possible. However, they are ordering more pricey menu items.
However, the number of players that spend more money every time they visit a casino is on the decrease. Even so, those who spend money are burning significantly more cash. If a casino plans to appeal more to locals, it’s best not to offer hotel accommodation to those patrons who’ve never stayed at a hotel before.
This is because high rollers know that a gourmet dinner and a complimentary hotel room are offered at virtually any casino hotel. Putting specific odds incentives in place is also common at certain casinos, like paying players 3-2 instead of 6-5 on blackjack, should they also be staying at a hotel.
