Study: Younger Gamblers Prefer Non-gaming Options at Casinos

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A recent study conducted by marketing agency LaneTerralever (LT) has shed light on the significant influence of non-gaming amenities on the choices of brick-and-mortar casinos among gamblers, particularly among younger adults. The study, encompassing 1,533 participants aged 21 to 75, highlighted the importance of factors such as restaurants, bars and live entertainment in the decision-making process.

Casinos Need More Than Gambling

According to the findings, 83.9% of Millennials consider non-gaming options when choosing a casino, with restaurants and bars being the most cited activities at 40.9%. Gen Z follows closely at 80.5%, while Gen X and Baby Boomers show slightly lower percentages at 76.1% and 65.3%, respectively. Live entertainment and hotel amenities were also significant factors, accounting for 23.2% and 16% of preferences, respectively.

Related: New Research Examines Gambling Harms Amongst Students

The Study disproved the stereotype of high rollers, revealing that affluent gamblers, those from households earning over $100,000 annually, spent 50% of their casino time on non-gaming activities. This surpassed the engagement of non-affluent players in similar activities.

Interestingly, 68% of Millennials engaged in activities other than gambling during their visits to retail casinos, emphasizing the growing importance of the experience economy. Nick Dan-Bergman, LT's Vice President of Marketing, highlighted the need for casino operators to focus on expanding experiential and entertainment offerings to attract and retain younger generations.

Loyalty Programs Integral to Retention

The report also addressed the issue of player loyalty, emphasizing that while non-gaming experiences play a crucial role, the most impactful factor was free play and bonus offers. However, the authors cautioned against relying solely on incentives, warning that a dependence on free offers could foster loyalty to promotions rather than the casino itself.

High-end, full-service spas are more common than ever within casinos,” the report read. “Family-friendly activities like arcades, bowling, and even indoor amusement rides attract a range of ages and fulfill various needs.

Marketing Agency LaneTerralever

As the study delved into future trends, it highlighted the enduring presence of online betting, with 58% of respondents expressing a preference for remote gambling over face-to-face interactions. The report suggested that while sports betting profitability might not witness dramatic changes, the industry should capitalize on the growing trend of online betting. It emphasized that online and in-person betting are not mutually exclusive, encouraging casinos to create engaging ways for non-traditional players to enjoy on-premise incentives, providing the best of both worlds.

Lastly, in collaboration with UNLV hospitality professor Anthony Lucas, the study concluded that intrinsic value, perceived worth regardless of price, should be the focus for building true loyalty. Casino operators can't rely solely on extrinsic factors like free play and discounts in order to retain their customers.

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