Casino and Casino-style Gambling - US - December 2012

SCOPE AND THEMES
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
The market
Market size and forecast
Figure 1: Fan chart forecast of total U.S. gaming revenues, at current prices, 2007-17
Segment performance
Figure 2: U.S. gaming revenue for commercial and tribal casinos, at current prices, 2010 and 2012
Market drivers
Figure 3: Consumer sentiment index, 2001-12
Leading companies
Figure 4: Global revenues among selected top commercial casino operators, 2011
The consumer
The incidence of casino visits held relatively steady throughout the recession
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
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
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’
Figure 8: Attitudes toward casinos and gambling, by aged 21-34 vs. all, August 2012
Educating players—particularly the affluent—will increase wagering
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
Figure 10: Budgeting and expectations for winning, by gender, August 2012
Women gravitate toward machines; men toward the tables
Figure 11: Casino games usually played, by gender, August 2012
General disinterest, finances, accessibility are top reasons for not visiting a casino
Figure 12: Reasons for not visiting a casino in the past year, August 2012
Impact of race and Hispanic origin
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
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
The internet: it’s everywhere you want to be—even at the casino
WiFi on the casino floor
Figure 14: Route 66 free WiFi connection, October 2012
Mobile banking can keep players in their seats
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
Inspire Trend: Access All Areas
Inspire Trend: Who Needs Humans?
Inspire 2015 Trend
Old Gold
MARKET SIZE AND FORECAST
Key points
Gaming revenues expected to beat pre-recession levels in 2012
Growth forecast for 2012-17
Figure 16: Total U.S. gaming revenues, at current prices, 2007-17
Figure 17: Total U.S. gaming revenues, at inflation adjusted prices, 2007-17
Fan chart forecast
Figure 18: Fan chart forecast of total U.S. gaming revenues, at current prices, 2007-17
MARKET DRIVERS
Key points
Economics drive leisure spending and the casino market
Median household income reflects downturn of casino gaming revenues
Figure 19: Median household income, 2001-12
Figure 20: Disposable personal income, January 2007-September 2012
Increasing consumer confidence drives casino revenues
Figure 21: Consumer sentiment index, 2001-12
Greater accessibility to casinos drives the market
Figure 22: Number of U.S. casinos, 2006-11
Figure 23: Number of states in the U.S. with casinos, by casino type, 2006-11
CASINO, ONLINE GAMBLING SITE VISITOR DEMOGRAPHICS
Key points
Likelihood of casino visitation increases with affluence
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
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
In-home and out-of-home leisure options compete with casinos
Figure 26: Total U.S. spending on commercial casinos vs. other spending choices, 2011
Other casino entertainment luring customers away from gaming floor
Figure 27: Frequency of gambling when visiting a casino, 2011 vs. 2012
Figure 28: Participation in other nongaming activities when visiting a casino, 2009-12
SEGMENT OVERALL PERFORMANCE
Key points
Number of gaming establishments increases 2006-11
Land-based or riverboat casinos reduced operations over this time
Figure 29: Number of U.S. locations for commercial, tribal, and racetrack casinos, 2006-11
Despite adding more locations, tribal casinos’ revenue share contracts
Figure 30: U.S. gaming revenue at current prices for commercial and tribal casinos, 2010 and 2012
SEGMENT PERFORMANCE—COMMERCIAL CASINOS
Key points
Commercial casinos back on track following recession
Nevada (Las Vegas)
New Jersey (Atlantic City)
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
Key points
Tribal casino revenue growth remains stable, slow growth forecast
Figure 33: Total U.S. tribal casinos gaming revenues at current prices, 2007-17
Figure 34: Total U.S. tribal casinos gaming revenues at inflation-adjusted prices, 2007-17
GEOGRAPHIC DISTRIBUTION
Key points
Gaming locations increase, competition heats up
Figure 35: States that participate in casino gambling, by category, 2011
Nevada and New Jersey largest markets for commercial casinos
Figure 36: Commercial casino gaming revenues, by state, 2010-11
Most top markets show significant declines
Figure 37: Top 20 U.S. casino markets, by revenue, 2007-11
LEADING COMMERCIAL CASINOS
Key points
Top casino operators see revenue growth
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
Putting customer comfort first
Taking it outside
Taking a load off
Taking it with you
Figure 39: Video slot machine game displayed on an Apple iPad, October 2012
Teching up the traditional
Figure 40: Interblock 4-D gaming technology-holographic dealers, October 2012
Figure 41: Bingo Time robotic dealer, October 2012
Figure 42: Aristocrat superman slot machine, October 2012
Figure 43: Aristocrat four slots in one slot machine, October 2012
Figure 44: IGT Dia De Muertos slot machine, October 2012
Online and social gaming waiting in the wings
MARKETING STRATEGIES
Key points
Promoting an image and the experience
Figure 45: Cosmopolitan Resort Casino, Las Vegas, “Just The Right Amount Of Wrong” TV ad, 2011
Figure 46: Pechanga Resort and Casino, Calif., “Experience It All” TV ad, 2012
Highlighting entertainment
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
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
Figure 49: ARIA Resort and Casino, Las Vegas, “Discover Distinctive New Dining” TV ad, 2011
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
Figure 52: Rivers Casino, Pittsburg, “Earn Rewards” TV ad, 2012
Online advertising
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
Key points
Casino visitation incidence and frequency has held relatively steady
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
Figure 55: Location of domestic casino(s) visited in the past 12 months, May 2003-June 2012
PAST 12 MONTH GAMBLING ACTIVITIES
Key points
Day trips or a night out are the most popular way to visit casinos
Figure 56: Past 12 month gambling activities, August 2012
Men have a slight edge for type of casino visits and other gambling
Figure 57: Past 12 month gambling activities, by gender, August 2012
Casino visitors enjoy a variety of outlets for their gaming
Figure 58: Past 12 month gambling activities, by past 12 month gambling activities, August 2012
HOW CASINO VISITATION HAS CHANGED
Key points
Visitation frequency appears to be a wash for casinos and online gaming
Figure 59: How casino visitation has changed compared to one year ago, August 2012
Most affluent casino-goers have the most steady attendance
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
Figure 61: Number of visits to casino(s) in the past 12 months, by age, April 2011-June 2012
ATTITUDES TOWARD CASINOS AND GAMBLING
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
Figure 62: Attitudes toward casinos and gambling, August 2012
Younger casino-goers’ attitudes vastly different than older patrons’
Figure 63: Attitudes toward casinos and gambling, by age, August 2012
The most affluent are the most likely to be confused by casino games
Figure 64: Attitudes toward casinos and gambling, by household income, August 2012
Couples can be targeted with “date-night” promotions
Figure 65: Attitudes toward casinos and gambling, by typical casino companion, August 2012
Unfamiliarity with casino games leads to lower betting
Figure 66: Difference in wagering and total spend by attitudes toward casino games and atmosphere, August 2012
CASINO VISITOR BEHAVIORS AND EXPECTATIONS
Key points
Women less serious about gambling, most expect to lose
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
Figure 68: Casino visitor behaviors and expectations, by age, August 2012
Affluent casino-goers more likely to receive marketing messages
Figure 69: Casino visitor behaviors and expectations, by household income, August 2012
MOST RECENT CASINO VISIT PURCHASES AND EXPENDITURES
Key points
Younger casino-goers (particularly men) buy in to the whole experience
Figure 70: Most recent casino visit purchases, by gender and age, August 2012
Men far outspend women on gambling and total activities
Figure 71: Most recent casino visit expenditures–Mean (without zero), by gender, August 2012
Affluent gamers spend more than twice the average on gambling
Figure 72: Most recent casino visit expenditures–Mean (without zero), by household income, August 2012
CASINO GAMES USUALLY PLAYED
Key points
Women gravitate toward fast, less complex games; men toward tables
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?
Figure 74: Casino games usually played, by age, August 2012
TYPICAL CASINO COMPANIONS
Key points
Casino visitation is rarely a solo venture
Figure 75: Typical casino companion, by gender, August 2012
Companionship varies with age, likely impacts overall spending
Figure 76: Typical casino companion, by age, August 2012
REASONS FOR NOT VISITING A CASINO
Key points
Lack of interest, funds are greatest barriers to casino visits
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
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
Figure 79: Reasons for not visiting a casino in the past year, by household income, August 2012
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Race and Hispanic origin impact the likelihood (and frequency) of visiting a casino
Insight: Hispanics and casinos
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’
Figure 81: Attitudes toward casinos and gambling, by Hispanic origin, August 2012
Whites have the least variety in their casino spending
Figure 82: Most recent casino visit purchases, by race/Hispanic origin, August 2012
Hispanics try their luck across a wide variety of games
Figure 83: Casino games usually played, by race/Hispanic origin, August 2012
Hispanics least likely to visit casinos alone
Figure 84: Typical casino companion, by race/Hispanic origin, August 2012
CUSTOM CONSUMER GROUPS—GAMBLING RISK LEVEL
Key points
Demographics
Figure 85: Gender, age, and household income, by gambling risk level groups, August 2012
Past 12 month gambling activities
Figure 86: Past 12 month gambling activities, by gambling risk level groups, August 2012
How casino visitation has changed
Figure 87: How casino visitation has changed compared to one year ago, by gambling risk level groups, August 2012
Attitudes toward casinos and gambling
Figure 88: Attitudes toward casinos and gambling, by gambling risk level groups, August 2012
Casino visitor behaviors and expectations
Figure 89: Casino and gambling attitudes and behaviors, by gambling risk level groups, August 2012
Most recent casino visit purchases and expenditures
Figure 90: Most recent casino visit purchases, by gambling risk level groups, August 2012
Casino games usually played
Figure 91: Casino games usually played, by gambling risk level groups, August 2012
Typical casino companion
Figure 92: Typical casino companion, by gambling risk level groups, August 2012
APPENDIX: OTHER USEFUL CONSUMER TABLES
Casino, online gambling site visitor key demographics
Figure 93: Incidence of visiting a casino in the past 12 months, by region, April 2011-June 2012
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
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
Figure 96: Past 12 month gambling activities, by household income, August 2012
Figure 97: Past 12 month gambling activities, Mean and median, August 2012
Figure 98: Past 12 month gambling activities, by age, August 2012
Figure 99: Past 12 month gambling activities, by household income, August 2012
Figure 100: Past 12 month gambling activities, by race/Hispanic origin, August 2012
Attitudes toward casinos and gambling
Figure 101: Attitudes toward casinos and gambling, by any gambling activities, August 2012
Casino visitor behaviors and expectations
Figure 102: Casino and gambling attitudes and behaviors, by typical casino companion, August 2012
Figure 103: Casino visitor behaviors and expectations, by gender and age, August 2012
Most recent casino visit purchases and expenditures
Figure 104: Most recent casino visit purchases, by age, August 2012
Figure 105: Most recent casino visit purchases, by household income, August 2012
Figure 106: Most recent casino visit expenditures, mean and median (without zero), by gambling risk level groups, August 2012
Casino games usually played
Figure 107: Casino games usually played, by household income, August 2012
Figure 108: Casino games usually played, by gender and age, August 2012
Typical casino companion
Figure 109: Typical casino companion, by household income, August 2012
APPENDIX: TRADE ASSOCIATIONS