Millennials make their mark at the casinos, but not through gambling｜PHL63
The term “millennials” has been in the news a lot lately. It refers to those who are currently between the ages of 18-35. Many of them have recently completed their studies and entered the job market. While the amount of money they have to spend can vary widely, market research points to other common traits such as tech savvy, openness to new experiences, and love of fun and excitement. The millennial mentality is more of a “meet me now” rather than waiting and saving for the future. Millennials are also impressive and impulsive, so if you offer the right product, they’re likely to respond.
So millennials seem like a good prospect for buying just about anything. As a result, nearly every company adapting to today’s trends is using marketing strategies specifically aimed at appealing to this and the next generation of consumers. Casinos are no exception. But one of the things that millennials rarely do that contributes the most to casino profits is gambling.
Millennials come to casinos to party, not gamble｜PHL63
Casino operators’ relentless efforts to cater to the growing number of millennials works in one way. They come to the casino in droves. Visit any casino anywhere in the United States on a weekend or holiday, or most casino outdoor pools at noon any day of the week, and you’ll be surrounded by twentysomethings. But the main reason they are there is to relax and have a good time. Few of them use casinos with the primary purpose of gambling. Maybe a few dollars on a slot machine or $20 on a table game, but rarely more.
70% of millennials come to casinos with less than $100 in cash. Even playing the lowest-stakes games on offer (weekends and holidays rule out most table games), $100 isn’t much to spend at a casino. Penny slot machines might seem like the best option, except for one thing. They can choose to play many coins at once. So they can actually get very expensive.
Young adults (Gen Y) spend money in casinos on food, drinks and interactive entertainment. If they don’t have enough cash on them, they just whip out their credit cards.
Why Millennials Don’t Like Traditional Casino Gambling Games｜PHL63
Why this generation of casino visitors is shying away from gambling and how casinos should respond was among the topics of discussion at the East Coast Gaming Conference at Harrah’s Atlantic City. There are a variety of reasons why millennials are largely not gambling as much as casinos would like them to.
Technically, even if they wanted to, the youngest millennials might be too young to legally gamble, since many casinos set the minimum age to gamble at 21. But even in the 21-35 age group, very few people gamble.
An obvious deterrent is limited access to cash. Many of these individuals are still in school, may be pursuing advanced degrees, or, they may have recently completed their studies but are still changing jobs or changing jobs. Some haven’t moved out of their parents’ home, or have moved back in, or are living with roommates to cut expenses.
Meanwhile, saving for the future may not be a priority just yet. So whenever some extra cash becomes available, the first inclination is to spend it on fun things. This could easily be dinner at a nice restaurant, or a couple of drinks with the chance to enjoy live DJ entertainment and dancing. But the prospect of risking the same amount of money to gamble for nothing is less appealing.
Additionally, having grown up with the internet and mobile devices, those in their twenties or early thirties are most likely to play the types of games online or on smartphones or tablets that are very different from most games in casinos. Big difference. Millennials find slot games that are pure luck boring. The type of games they enjoy are competitive events, where they have the opportunity to show off their skills and compete with other players.
Las vegas response｜PHL63
Give millennials what they want: more restaurants, clubs and exciting entertainment
If casinos want to make their resorts more millennial-friendly, there are two schools of thought on how and to what extent casinos should respond. Las Vegas’ approach so far has largely been to give younger visitors what they want. If that means more restaurants, clubs, entertainment and other social venues, and other non-gambling-related novelties like parks, beaches and sky rides, so be it. In the words of MGM Resorts CEO Jim Mullen, “A dollar is a dollar.”
The approach is clearly working because while the total number of visitors has been rising, the average age of Las Vegas vacationers has been falling. According to a survey conducted in 2015, 35 percent of Las Vegas visitors are under the age of 40. The amount spent on gambling has also been decreasing, while the amount spent on non-gambling activities (lodging, food, drink, entertainment and shopping) has been steadily increasing.
The Changing Face of the Las Vegas Strip｜PHL63
Meanwhile, the Las Vegas Strip looks very different than it did 10 years ago. Gone are some of the most familiar landmarks of classic Vegas that your parents and grandparents may have visited and played, such as the Stardust, Sahara and Riviera. Instead, the Las Vegas Strip is now home to a number of relatively new casino hotels and other properties whose new names are only a small part of its overall transformation.
A little further south on the Las Vegas Strip, Beer Park, a partnership between Budweiser and Paris Las Vegas, has opened on a Paris rooftop. You cannot gamble at Beer Place. But it’s perfect for hanging out with friends (and making new ones) at the communal picnic tables, watching sports on the TVs or the Bellagio Fountain Show across the street, all while indulging in your choice of food and beer pairings.
Another addition to the Strip in 2016 is an outdoor area, simply called The Park. It connects two adjacent MGM Resorts casino hotels, NY-NY and Monte Carlo, while also providing convenient access to the brand new 20,000-seat T-Mobile Concert Arena. The park itself is an area where visitors can relax, socialize, dine and play, but there are no slot machines or blackjack tables in sight.
What all of these projects have in common, besides being very ambitious and very expensive, is that they take the focus away from gambling. Instead, the focus is on other activities that will not only offer something different, but perhaps the kind that will especially appeal to younger visitors.
Casinos in other regions are replicating the same idea｜PHL63
Casinos elsewhere are trying to bolster their appeal to younger tourists, who are taking a cue from Las Vegas. Seeing a de-emphasis on gambling and a greater emphasis on non-gambling activities is clearly at work in Las Vegas, and it’s the same in coast-to-coast casinos. The opening of new restaurants, bars and clubs is the name of the game, while pool parties and high-energy entertainment, far more than slot machines and table games, are now the biggest draws at these resorts.
Getting millennials to gamble more｜PHL63
Adding a variety of attractions and amenities that draw more young people to casinos is still only part of what many casino executives are trying to achieve, as the bigger challenge is getting millennials to gamble more. With this aim in mind, new games are being offered, as well as tweaks to existing titles which are believed to be more in line with what younger visitors want to play.
Millennials Love Interactive Over-the-Top Slots｜PHL63
Recognizing that this generation has grown up using the internet and mobile devices has led to casinos adding new slot games that seem to be perfect for this age group. The new game is clearly designed to be similar to games many millennials may already be playing online. The most played new type of slot machine, in addition to its large size, is not only taller and more eye-catching than traditional slot machines, but also much more interactive. Games with movie-quality graphics and soundtracks modeled after blockbusters and hit TV shows, or games featuring relevant celebrities or multiple titles will really catch the attention of young people. Game of Thrones, Guns N’ Roses, The Big Bang Theory, Sphinx 3D, Cash Explosion and Advantage Revolution have quickly become some of the most popular games in the casino.
Millennials prefer to mix gambling with other activities｜PHL63
Other types of games that will almost certainly win over younger players are slot machines or video games that include some elements of skill and fantasy sports betting. However, such additions to casinos cannot be made until permitted by law. At the same time, what some casinos are doing very effectively is combining gambling and non-gambling activities. For example, several casinos in Las Vegas offer swim-up blackjack, while in Atlantic City, visitors to Harrah’s Resort’s Pool After Dark and Golden Nugget’s Deck can play blackjack outdoors while admiring the top DJ performance.
Additionally, according to a survey by travel marketing firm MMGY Global, 86 percent of younger gamblers prefer to play at casinos that offer “social gaming” areas, compared to 55 percent of older players. The Resorts Casino Hotel in Atlantic City has a separate i-Gaming Lounge just off the casino floor, complete with comfy couches and a giant video screen. Alternatively, those who prefer can use their smartphone or tablet to play. Most of the players who frequent the lounge are under the age of 30.
As it turns out, another casino player lounge popular with young adults is the Encore Players Club at Wynn Las Vegas. This ultra-luxe section of the casino opens every night at 8pm. Give players everything they seem to want until 4am. The selection includes traditional table games like blackjack, roulette, and craps; sportsbooks; interactive tables with additional games, free or real money; and pool and shuffleboard. Players can also enjoy beverage service, comfortable seating, giant HDTVs and live DJ entertainment.
Summary and Conclusion｜PHL63
All in all, there is no one specific formula that can guarantee winning young visitors to casinos, allowing them to enjoy not only hospitality and entertainment, but gambling as well. However, simply adding more restaurants and rich nightlife options is not enough. The game itself needs to be millennial-friendly. The Pechanga Hotel and Casino in Temecula, California (between San Diego and Los Angeles) is a millennial-focused hotel and has been a huge success. The hotel, which is full every night, is undergoing a $285 million expansion. But with all the new rooms, restaurants and entertainment, the casino floor has also undergone innovative changes. In the words of Victor Rocha, owner and editor of Pechanga.net, “Give customers what they want.”
