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“We offer a lot of value for players age 21 to 35, who do not have a lot of money in their pocket and who have not come close to reaching their earning potential.” —Jay Kornegay, VP of Race and Sports Operations, LVH capture the young demographic and convert them into valuable players for the rest of their active adult lives. “There is a need to create online games that are similar to the popular video game products the younger players have grown up with,” says Fine. “Imagine what would happen if you had Angry Birds, Grand Theft Auto, John Madden football or Candy Crush available for online gaming for money.” Fine says to further engage the younger players to slot machines or eventually online gaming, the actual play needs to be more like the play that occurs in the bonus rounds. “This generation is not interested in watching the spinning slot machine reels for entertainment,” says Fine. “Slot machine developers and gaming companies know the math behind the reel-spinning, and now they need to find a math model for video gaming. It is hard to solve, but it will help them attract a new generation of players.”
Need for Nightlife The overtures by casinos to the younger demographics of nightclubs has been the great equalizer to their lack of spending on the casino floor. This trend began a little over a decade ago in Las Vegas, and has spread to the Atlantic City, Southern California, Lake Tahoe, Reno, Phoenix and New Orleans markets, along with other cities. “Nightclubs and the DJ programming of the nightclub are a central attraction,” says Kreeger. “We provide packages which combine hotel stays with nightclub specials and concert tickets. These are the types of combined experience the younger customer is seeking because it fits in well with their seenand-be-seen desires.” These desires have added huge profit margins to the casinos’ bottom line, and an even newer revenue stream, “day life” (also known as pool parties), have proven an even more profitable venture than many nightclubs. “The daytime experience is a great complement to the lineup of worldclass DJs and entertainment,” says Kreeger. “As we transition young resort guests into gaming customers, it is important to create loyalty programs which provide benefits based on their slight shifts in purchasing habits. Your incentives need to match customer preferences, which are definitely changing.” Nightclubs have become the third tier of major revenue for many casinos, joining gaming and hotels. However, Fine is quick to point out, “Other cities do not have an option for Las Vegas-style nightlife, so they have to be more creative with their local entertainment programming to attract the 21-to-35year-old demographic.” 20
Global Gaming Business MARCH 2014
Sports Book on a Budget With the Great Recession delaying financial stability for the majority within this younger demographic, identifying the best places within the casino to make their money last longer has an entirely new meaning in added value. “We offer a lot of value for players age 21 to 35, who do not have a lot of money in their pocket and who have not come close to reaching their earning potential,” says Jay Kornegay, vice president of race and sports operations at LVH (formerly the Las Vegas Hilton), which is widely regarded as the best sports book in the country. “A $10 bet that can entertain the younger players for three hours is a very attractive situation. There are certain things we try to do to accommodate that age group, from the food items we offer on the menu to the proposition bets we offer on games, to the games we show on television.”
Growing Old with Gaming? The biggest question yet to be answered regarding the youngest demographic is if they will transition to the traditional games of slot machines, keno and bingo once they grow older like previous generations. With unprecedented exposure to casinos at a young age due to the expansion of properties across the United States and the popular nightclubs, most experts agree that their casino experience will come full-circle to the traditional games during the second half of their lives. “The reality is that the casino will take the 55-year-old over the 35-year-old every single time because they have both time and disposable income,” says Meczka. “It doesn’t matter what market you are in. The people age 21 to 35 now will go back to casinos as they get older; they will just have a different experience.” Fine has a different view. “By the time this age group is 65 years old in at least 30 years from now, the world could be a dramatically different place,” says Fine. “How it changes could definitely affect their playing habits.” In case this generation doesn’t come full circle and future generations of young players follow their lead, Kreeger is determined that Revel Casino be on the forefront of adjusting programming, personnel and promotions to create loyal lifelong customers. “The key to integrating the next generation of casino customers is to adapt your strategy towards their habits and preferences instead of exposing them to traditional gaming promotions, which are less relevant to them,” says Kreeger. “We try to cater to these changing preferences by offering a full complement of amenities that allow for a variety of experiences through a typical stay. So far it is working for us, and we are sticking to it.”