Tuesday, October 20, 2015

Millennials Part 2: Meeting Their Expectations on the Casino Floor

In our last blog of this series, we discussed Millennial traits and characteristics. A key characteristic we see affecting casinos is in the swift adaptation to new technologies and the accompanying expectations.

High Expectations 
An article in the Las Vegas Review Journal by millennial Richard N. Vilotta summarized it well: “When I come to the casino, I’ll have six of my buddies with me and we want a blackjack table so that all of us can play and interact at the same time. I have a list of our favorite drinks and microbrews that we’d like to have while we’re playing. Oh, and since we’re all Michigan State grads, we’d like to be sure that the Nebraska game is on a television we can all see because we’d like to catch the game as we play. And because we’ll be watching the game, the pace of our play may be a little slower — hope that’s OK. We also want to make sure it’s all right for us to take pictures at the table so that we can show some of our other friends what a good time we’re having.” So Millennials have adapted to, and expect, multiple simultaneous entertainment outlets.

Another adaptation is that Millennials often prefer to spend money on experiences, rather than things. Casino operators have seen the shift from the traditional slots and big buffet model to spending on things like high-end night clubs, pool cabanas and table service. How can gaming operators integrate these preferences?

Skills-based games
We’ve written previously on the potential to integrate skills-based games to the casino floor. Nevada and New Jersey have approved regulation that opens the door for some unique skills-based games. Nevada’s bill is specific to skills-based slot machines, which could integrate a video game-style bonus round that would increase a player’s chances based on their video gaming skills. These types of games are seen as integral to attracting the younger patrons.

New Jersey’s law is much broader – accepting proposals for a broader definition of skills-based games. A free throw shooting contest at the Borgata was approved in February, bringing unique visitors to the casino from across the US. Clever ideas like this will not only expand the casino’s clientele, but also appeal to those younger patrons who are looking for an experience rather than a bank of slots.

Social gaming
Millennials spend an average of 12 hours a week on social gaming and casino operators are looking for ways to translate that to the gaming floor. Eric Meyerhofer, CEO of Gamblit Gaming, estimates the potential market in the United States to be $8 billion to $10 billion.

The idea is to integrate games like Candy Crush, Halo and Call of Duty into the gaming floor. But some say that just adding a new name to the same old slot machines won’t cut it. So slot machine designers are looking at ways to integrate a real-time social element to a bank of slots, enabling players to play against their friends.

In fact, one study showed that Millennials actually prefer simple slot machines - slots with 3 coins, one line. Millennials don’t want to play the penny slot with 50 lines, and they lose interest quickly. So casinos actually risk losing interest by introducing the same old slot machine that has just been rebranded as Candy Crush. Perhaps a more appealing game would be a slot machine that has fewer lines and combines a bonus skills-based round, and/or that social element of playing against other players.

In the meantime, casinos have seen traffic move away from slots and toward table games, and casino operators are increasing table games to accommodate this shift.

From an entirely different perspective, the MGM group has created a successful social gaming platform called MyVegas that allows users to win points which can be exchanged for hotel nights or experiences like dinners, club entry or drinks.  This successfully combines the social gaming platform with the experience factor that Millennials crave while building brand loyalty.

Wrapping it up
So, we know that Millennials are multi-taskers (or have short attention spans, for the nay-sayers) who tend to play games while watching TV. So while the traditional thinking was to keep players on the gaming floor, offering few distractions, we now see that those “distractions” are exactly what Millennials want. Casinos could look to implement multiple focal points in gaming areas. A bank of socially connected slots could also feature a wall of TVs showing sports or perhaps center around an entertainment feature such as a rotating competitive rock climbing wall or even an indoor skydiving tunnel.

And gambling is no longer the focal point of the vacation; rather, it’s just a part of a vacation experience that is expected to include high-end clubs, excellent food and other resort amenities. While some of these preferences are specific to the Millennial group, we do see a shifting in expectations throughout the generational spectrum - a casino vacation is no longer about sitting at a bank of slots before heading to the buffet. It's become much more. 

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