Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative and online advertising data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Market size and forecast
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- Figure 1: Fan chart forecast of total U.S. gaming revenues, at current prices, 2007-17
- Segment performance
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- Figure 2: U.S. gaming revenue for commercial and tribal casinos, at current prices, 2010 and 2012
- Market drivers
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- Figure 3: Consumer sentiment index, 2001-12
- Leading companies
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- Figure 4: Global revenues among selected top commercial casino operators, 2011
- The consumer
- The incidence of casino visits held relatively steady throughout the recession
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- Figure 5: Incidence of visiting a casino in the past 12 months and number of visits, May 2003-June 2012
- Youngest casino-goers visit the least often
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- Figure 6: Number of visits to casino(s) in the past 12 months, by age, April 2011-June 2012
- Young men are most likely to buy in to the whole experience
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- Figure 7: Most recent casino visit purchases, by men and women aged 21-34 vs. all, August 2012
- In many ways, younger casino-goers’ attitudes are vastly different from older patrons’
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- Figure 8: Attitudes toward casinos and gambling, by aged 21-34 vs. all, August 2012
- Educating players—particularly the affluent—will increase wagering
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- Figure 9: Amount wagered and total amount spent, by agreement that casino games are confusing, August 2012
- Women more likely to be playing for fun, men playing to win
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- Figure 10: Budgeting and expectations for winning, by gender, August 2012
- Women gravitate toward machines; men toward the tables
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- Figure 11: Casino games usually played, by gender, August 2012
- General disinterest, finances, accessibility are top reasons for not visiting a casino
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- Figure 12: Reasons for not visiting a casino in the past year, August 2012
- Impact of race and Hispanic origin
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- Figure 13: Incidence of visiting a casino in the past 12 months (April 2011-June 2012) and most recent casino visit purchases (August 2012), by race/Hispanic origin
- What we think
Issues in the Market
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- Is the market saturated, or is there room for growth?
- Does the notion of a casino visit as “big night out” help or hurt revenue?
- Will online gaming be a boost or bust to brick-and-mortar casinos?
- How can casinos bring gaming back to the forefront?
Insights and Opportunities
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- The internet: it’s everywhere you want to be—even at the casino
- WiFi on the casino floor
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- Figure 14: Route 66 free WiFi connection, October 2012
- Mobile banking can keep players in their seats
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- Figure 15: Money Centers of America mobile banking application, October 2012
- Mobile gaming lets players place bets on smartphones, iPads, other mobile devices
- Casinos link amenities with gaming and mobility
- Where’s the loyalty?
- MGM Resorts lets loyalty card holders earn points via social media
- MGM pairs with Royal Caribbean for customer rewards program
Trend Application
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- Inspire Trend: Access All Areas
- Inspire Trend: Who Needs Humans?
- Inspire 2015 Trend
- Old Gold
Market Size and Forecast
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- Key points
- Gaming revenues expected to beat pre-recession levels in 2012
- Growth forecast for 2012-17
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- Figure 16: Total U.S. gaming revenues, at current prices, 2007-17
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- Figure 17: Total U.S. gaming revenues, at inflation adjusted prices, 2007-17
- Fan chart forecast
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- Figure 18: Fan chart forecast of total U.S. gaming revenues, at current prices, 2007-17
Market Drivers
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- Key points
- Economics drive leisure spending and the casino market
- Median household income reflects downturn of casino gaming revenues
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- Figure 19: Median household income, 2001-12
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- Figure 20: Disposable personal income, January 2007-September 2012
- Increasing consumer confidence drives casino revenues
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- Figure 21: Consumer sentiment index, 2001-12
- Greater accessibility to casinos drives the market
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- Figure 22: Number of U.S. casinos, 2006-11
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- Figure 23: Number of states in the U.S. with casinos, by casino type, 2006-11
Casino, Online Gambling Site Visitor Demographics
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- Key points
- Likelihood of casino visitation increases with affluence
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- Figure 24: Incidence of visiting a casino in the past 12 months, by gender, age, and household income, April 2011-June 2012
- Online gambling sites get relatively few visitors, mostly men
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- Figure 25: Incidence of visiting an online gambling site in the past seven days/past 30 days, by demographic, April 2011-June 2012
Competitive Context
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- In-home and out-of-home leisure options compete with casinos
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- Figure 26: Total U.S. spending on commercial casinos vs. other spending choices, 2011
- Other casino entertainment luring customers away from gaming floor
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- Figure 27: Frequency of gambling when visiting a casino, 2011 vs. 2012
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- Figure 28: Participation in other nongaming activities when visiting a casino, 2009-12
Segment Overall Performance
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- Key points
- Number of gaming establishments increases 2006-11
- Land-based or riverboat casinos reduced operations over this time
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- Figure 29: Number of U.S. locations for commercial, tribal, and racetrack casinos, 2006-11
- Despite adding more locations, tribal casinos’ revenue share contracts
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- Figure 30: U.S. gaming revenue at current prices for commercial and tribal casinos, 2010 and 2012
Segment Performance—Commercial Casinos
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- Key points
- Commercial casinos back on track following recession
- Nevada (Las Vegas)
- New Jersey (Atlantic City)
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- Figure 31: Total U.S. commercial casinos gaming revenues at current prices, 2007-17
- Figure 32: Total U.S. commercial casinos gaming revenues at inflation-adjusted prices, 2007-17
Segment Performance—Tribal Casinos
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- Key points
- Tribal casino revenue growth remains stable, slow growth forecast
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- Figure 33: Total U.S. tribal casinos gaming revenues at current prices, 2007-17
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- Figure 34: Total U.S. tribal casinos gaming revenues at inflation-adjusted prices, 2007-17
Geographic Distribution
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- Key points
- Gaming locations increase, competition heats up
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- Figure 35: States that participate in casino gambling, by category, 2011
- Nevada and New Jersey largest markets for commercial casinos
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- Figure 36: Commercial casino gaming revenues, by state, 2010-11
- Most top markets show significant declines
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- Figure 37: Top 20 U.S. casino markets, by revenue, 2007-11
Leading Commercial Casinos
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- Key points
- Top casino operators see revenue growth
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- Figure 38: Global revenues among selected top commercial casino operators, 2008 and 2009
- Las Vegas Sands
- Loyalty programs and marketing
- Caesars Entertainment
- Loyalty program: Total Rewards
- MGM Resorts
- Loyalty program: M life
- Penn National Gaming, Inc.
- International Game Technology (IGT)
Innovations and Innovators
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- Putting customer comfort first
- Taking it outside
- Taking a load off
- Taking it with you
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- Figure 39: Video slot machine game displayed on an Apple iPad, October 2012
- Teching up the traditional
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- Figure 40: Interblock 4-D gaming technology-holographic dealers, October 2012
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- Figure 41: Bingo Time robotic dealer, October 2012
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- Figure 42: Aristocrat superman slot machine, October 2012
- Figure 43: Aristocrat four slots in one slot machine, October 2012
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- Figure 44: IGT Dia De Muertos slot machine, October 2012
- Online and social gaming waiting in the wings
Marketing Strategies
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- Key points
- Promoting an image and the experience
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- Figure 45: Cosmopolitan Resort Casino, Las Vegas, “Just The Right Amount Of Wrong” TV ad, 2011
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- Figure 46: Pechanga Resort and Casino, Calif., “Experience It All” TV ad, 2012
- Highlighting entertainment
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- Figure 47: MGM Grand Hotel and Casino, Las Vegas, “The Material Girl Is Back On” TV Ad, 2012
- Hispanic musical acts can draw a crowd
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- Figure 48: San Manuel Indian Bingo & Casino, Calif., “Pepe Aguilar, Back By Popular Demand” TV ad, 2012
- Fine dining vs. the ubiquitous budget buffet—both have a place
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- Figure 49: ARIA Resort and Casino, Las Vegas, “Discover Distinctive New Dining” TV ad, 2011
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- Figure 50: Station Casinos, Las Vegas, “Great Food And Plenty Of It” TV ad, 2012
- Figure 51: Super 8-Longhorn Casino, Las Vegas, October 2011
- Loyalty programs and rewards
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- Figure 52: Rivers Casino, Pittsburg, “Earn Rewards” TV ad, 2012
- Online advertising
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- Figure 53: Top casino online advertisers, total impressions and share, September 2011-September 2012
- Other notable strategies
- Using chips for marketing
- MGM pairs with Royal Caribbean for customer rewards program
- Slogans
Casino Visitation Trends
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- Key points
- Casino visitation incidence and frequency has held relatively steady
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- Figure 54: Incidence of visiting a casino in the past 12 months and number of visits, May 2003-June 2012
- Indian reservation casinos, Las Vegas draw the greatest crowds
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- Figure 55: Location of domestic casino(s) visited in the past 12 months, May 2003-June 2012
Past 12 Month Gambling Activities
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- Key points
- Day trips or a night out are the most popular way to visit casinos
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- Figure 56: Past 12 month gambling activities, August 2012
- Men have a slight edge for type of casino visits and other gambling
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- Figure 57: Past 12 month gambling activities, by gender, August 2012
- Casino visitors enjoy a variety of outlets for their gaming
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- Figure 58: Past 12 month gambling activities, by past 12 month gambling activities, August 2012
How Casino Visitation Has Changed
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- Key points
- Visitation frequency appears to be a wash for casinos and online gaming
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- Figure 59: How casino visitation has changed compared to one year ago, August 2012
- Most affluent casino-goers have the most steady attendance
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- Figure 60: How casino visitation has changed compared to one year ago, by household income, August 2012
- Number of visits lowest among 21-24s, increases with age
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- Figure 61: Number of visits to casino(s) in the past 12 months, by age, April 2011-June 2012
Attitudes Toward Casinos and Gambling
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- Key points
- Online influences, motivations, food and beverage, and atmosphere
- Online influence is more positive than negative to driving in-person visitation
- Survey results suggest that casinos should add more variety
- Restaurants and bars are key; customer service generally positive, room to improve
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- Figure 62: Attitudes toward casinos and gambling, August 2012
- Younger casino-goers’ attitudes vastly different than older patrons’
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- Figure 63: Attitudes toward casinos and gambling, by age, August 2012
- The most affluent are the most likely to be confused by casino games
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- Figure 64: Attitudes toward casinos and gambling, by household income, August 2012
- Couples can be targeted with “date-night” promotions
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- Figure 65: Attitudes toward casinos and gambling, by typical casino companion, August 2012
- Unfamiliarity with casino games leads to lower betting
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- Figure 66: Difference in wagering and total spend by attitudes toward casino games and atmosphere, August 2012
Casino Visitor Behaviors and Expectations
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- Key points
- Women less serious about gambling, most expect to lose
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- Figure 67: Casino visitor behaviors and expectations, by gender, August 2012
- Younger patrons more likely to recall the wins rather than the losses
- Insight: addressing gambling addicts
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- Figure 68: Casino visitor behaviors and expectations, by age, August 2012
- Affluent casino-goers more likely to receive marketing messages
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- Figure 69: Casino visitor behaviors and expectations, by household income, August 2012
Most Recent Casino Visit Purchases and Expenditures
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- Key points
- Younger casino-goers (particularly men) buy in to the whole experience
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- Figure 70: Most recent casino visit purchases, by gender and age, August 2012
- Men far outspend women on gambling and total activities
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- Figure 71: Most recent casino visit expenditures–Mean (without zero), by gender, August 2012
- Affluent gamers spend more than twice the average on gambling
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- Figure 72: Most recent casino visit expenditures–Mean (without zero), by household income, August 2012
Casino Games Usually Played
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- Key points
- Women gravitate toward fast, less complex games; men toward tables
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- Figure 73: Casino games usually played, by gender, August 2012
- Younger gamblers go to the tables; older to the machines
- Insight: baccarat play increases—appears to be driven by younger players
- Why has baccarat rebounded?
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- Figure 74: Casino games usually played, by age, August 2012
Typical Casino Companions
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- Key points
- Casino visitation is rarely a solo venture
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- Figure 75: Typical casino companion, by gender, August 2012
- Companionship varies with age, likely impacts overall spending
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- Figure 76: Typical casino companion, by age, August 2012
Reasons for Not Visiting a Casino
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- Key points
- Lack of interest, funds are greatest barriers to casino visits
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- Figure 77: Reasons for not visiting a casino in the past year, by gender, August 2012
- Lack of time and accessibility are also perceived as deterrents
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- Figure 78: Reasons for not visiting a casino in the past year, by age, August 2012
- The most affluent have the least interest, are put off by the atmosphere
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- Figure 79: Reasons for not visiting a casino in the past year, by household income, August 2012
Impact of Race and Hispanic Origin
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- Key points
- Race and Hispanic origin impact the likelihood (and frequency) of visiting a casino
- Insight: Hispanics and casinos
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- Figure 80: Incidence of visiting a casino in the past 12 months and number of visits, by race/Hispanic origin, April 2011-June 2012
- Hispanic casino-goers’ attitudes greatly different than non-Hispanics’
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- Figure 81: Attitudes toward casinos and gambling, by Hispanic origin, August 2012
- Whites have the least variety in their casino spending
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- Figure 82: Most recent casino visit purchases, by race/Hispanic origin, August 2012
- Hispanics try their luck across a wide variety of games
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- Figure 83: Casino games usually played, by race/Hispanic origin, August 2012
- Hispanics least likely to visit casinos alone
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- Figure 84: Typical casino companion, by race/Hispanic origin, August 2012
Custom Consumer Groups—Gambling Risk Level
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- Key points
- Demographics
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- Figure 85: Gender, age, and household income, by gambling risk level groups, August 2012
- Past 12 month gambling activities
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- Figure 86: Past 12 month gambling activities, by gambling risk level groups, August 2012
- How casino visitation has changed
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- Figure 87: How casino visitation has changed compared to one year ago, by gambling risk level groups, August 2012
- Attitudes toward casinos and gambling
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- Figure 88: Attitudes toward casinos and gambling, by gambling risk level groups, August 2012
- Casino visitor behaviors and expectations
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- Figure 89: Casino and gambling attitudes and behaviors, by gambling risk level groups, August 2012
- Most recent casino visit purchases and expenditures
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- Figure 90: Most recent casino visit purchases, by gambling risk level groups, August 2012
- Casino games usually played
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- Figure 91: Casino games usually played, by gambling risk level groups, August 2012
- Typical casino companion
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- Figure 92: Typical casino companion, by gambling risk level groups, August 2012
Appendix: Other Useful Consumer Tables
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- Casino, online gambling site visitor key demographics
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- Figure 93: Incidence of visiting a casino in the past 12 months, by region, April 2011-June 2012
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- Figure 94: Incidence of visiting a casino in the past 12 months, by race/Hispanic origin and household income, April 2011-June 2012
- Online gambling websites
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- Figure 95: Incidence of visiting an online gambling site in the past seven days/past 30 days, by race/Hispanic origin and age, April 2011-June 2012
- Past 12 month gambling activities
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- Figure 96: Past 12 month gambling activities, by household income, August 2012
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- Figure 97: Past 12 month gambling activities, Mean and median, August 2012
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- Figure 98: Past 12 month gambling activities, by age, August 2012
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- Figure 99: Past 12 month gambling activities, by household income, August 2012
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- Figure 100: Past 12 month gambling activities, by race/Hispanic origin, August 2012
- Attitudes toward casinos and gambling
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- Figure 101: Attitudes toward casinos and gambling, by any gambling activities, August 2012
- Casino visitor behaviors and expectations
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- Figure 102: Casino and gambling attitudes and behaviors, by typical casino companion, August 2012
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- Figure 103: Casino visitor behaviors and expectations, by gender and age, August 2012
- Most recent casino visit purchases and expenditures
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- Figure 104: Most recent casino visit purchases, by age, August 2012
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- Figure 105: Most recent casino visit purchases, by household income, August 2012
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- Figure 106: Most recent casino visit expenditures, mean and median (without zero), by gambling risk level groups, August 2012
- Casino games usually played
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- Figure 107: Casino games usually played, by household income, August 2012
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- Figure 108: Casino games usually played, by gender and age, August 2012
- Typical casino companion
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- Figure 109: Typical casino companion, by household income, August 2012
Appendix: Trade Associations
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