A recent survey found that the U.S. economy is impacting 67% of casino customers’ gaming experience.
Key Takeaways
- Marketing and customer experience agency LT surveyed 703 casino customers and 66 gaming operators.
- The study found generational gaps in both gaming and non-gaming options.
- Gaming has become even more of a social experience since last year.
More than 470 of the 703 players surveyed said they limit their budget or play time due to economic and cost-of-living pressures, according to a study titled “The Casino Experience Gap: Shifts in Player Expectations & Operators’ Priorities” released by marketing and customer experience agency LT.
With inflation concerns and fears of a potential economic recession sweeping the U.S., the younger generations – Millennials and Gen Z – showed a higher propensity to be more cost-conscious.
“It was certainly important to us to be relevant to the time, especially when we’re talking to players,” said Lauren Hillery, VP of strategy at LT, during a Tuesday webinar. “They aren’t just players. They are human beings living busy lives. The economic pressures are impacting them. If now is the time to nurture them and they’re having to budget a little bit differently and think about where they’re going to spend their dollars, this is important to think about.”
Generation gap
The study, involving ages 21-75, said 43% of Millennials and 35% of Gen Z said they would reduce their gaming time during hard financial times. Meanwhile, 52% of affluent players, defined as having a household income above $175,000, said economic pressures aren’t affecting their gaming experience.
“This study highlighted what we've deemed ‘the experience gap,’ or the fundamental misalignment between player and operator priorities: Players want gaming to be one piece of a more holistic, entertainment-centered experience bolstered by a set of baseline digital tools, while operators remain overly tethered to models that have proven successful in the past,” LT chief marketing officer Nick Dan-Bergman said. “In order to foster loyalty, it's paramount that operators meet players where they are, particularly in uncertain economic times.”
Provide entertainment
LT’s research found that 66% of customers said the decision of where to play is impacted by non-gaming options, like dining, hotel amenities, golf courses, and other forms of entertainment. That’s up from 46% in the 2024 survey.
Forty-five percent of players spend more than a quarter of their casino experience involved in those non-gaming activities, an increase from 20% in 2024’s survey.
“We see time and time again that food and beverage are incredibly important,” Hillery said. “It’s a destination. They can go out, get a good meal, have some fun, and experience all that (casinos) have to offer.”
This is especially important to younger generations as 74% of Millennials and 70% of Gen Z players said non-gaming choices impact casino decisions.
Growing the sector
However, 85% of operators said they want to grow revenue in this sector, but they devote less than 10% of their marketing budgets to promoting dining, entertainment, and other non-gaming options.
Suzanne Trout, Cordish Gaming executive vice president and chief marketing officer, was part of a panel trio that weighed in on the results of the study. Trout said some of the company's properties have even had success using non-gaming promotions to draw customers to their gaming establishments.
“Giving them these other experiences just creates a stickier environment, where they’re going to stay longer or come back more,” Trout said. “We’ve been able to put an ROI to that.”
Social trending
Gaming is a rising social experience.
LT’s study, conducted in partnership with UNLV College of Hospitality professor Anthony F. Lucas, found that 91% of players are going to casinos with other people, a 10% year-over-year increase from the 2024 survey. The latest research also showed that 70% of players view the casino experience as a pastime or form of entertainment.
“The message is clear: the casino experience has become much more than just the gaming floor, which represents an opportunity for operators to drive loyalty through new and alternative channels,” LT said in their release of the study.
Notable technology results
LT found that technology creates some of the disconnect between players and casinos.
- 44% of players say technology has made the casino experience worse.
- 74% of players expect digital tools, like apps and loyalty portals.
- 54% of customers are using loyalty apps, but only 44% of operators are investing in apps.
- 87% of Gen Z, compared to 58% of Gen X and 43% of Boomers, prioritize digital player portals to see promotional points.
- 47% of operators aren’t prepared to take advantage of artificial intelligence technology.
- 34% of casino companies say AI will be a priority over the next two years.
