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Casino and Casino-style Gambling - US - August 2016

Published By :

Mintel

Published Date : Aug 2016

Category :

Lifestyle

No. of Pages : N/A

The US casino gaming market has been growing steadily, and is forecast to continue on a stable trajectory, as a consistent stream of visitors come through casino doors each year. The long-time staple of casino floors, slot machines, are the game of choice, but tech-savvy Millennials’ interest in more social and digitally-centered games is driving the industry to develop new options. Due to curiosity about online gaming (iGaming) and interest in non-gaming pursuits, operators will be challenged to compete with other leisure activities that offer similar exciting and social elements. 

Table of Content

Overview

What you need to know
Definition

Executive Summary

Figure 1: Total US casino gaming revenues and forecast, by segment, at current prices, 2011-21
The issues
Casino visitation rate has been nearly flat for the past decade
Figure 2: Casino Visitation, April 2016
Balancing new game interests with traditional ones
Figure 3: Casino games played, April 2016
Older adults may feel excluded from the casino scene
Figure 4: Visit motivation, by age, April 2016
The opportunities
Help Millennials learn the ropes through low-risk opportunities
Figure 5: What would increase casino visitation frequency – Select items, by generation, April 2016
Monitoring money while visiting to help ease overspending concerns
Figure 6: Perceptions of casinos – Any agree, April 2016
Hispanics express enthusiasm towards casinos
What it means

The Market – What You Need to Know

US casino gaming revenues estimated at $68.5 billion
Gaming revenue plateaus – non-gaming revenues may provide a boost
Gaming expands beyond casino walls
Large, young population may help bolster revenue in coming years

Market Size and Forecast

Casino gaming revenues increasing, but trail overall spending growth
Figure 7: Total US casino gaming revenues and fan chart forecast, at current prices, 2011-21
Figure 8: Total US casino gaming revenues and forecast, at current prices, 2011-21

Market Breakdown

Commercial casinos account for greater share of the market
Figure 9: Total US casino gaming revenues and market share, by segment, at current prices, 2016
Figure 10: Total US casino gaming revenues and market share, by segment, at current prices, 2014 and 2016
Commercial casino revenue growth is slow but steady
Figure 11: Total US commercial casino gaming revenues and fan chart forecast, at current prices, 2011-21
Midwest and South regions driving growth
Figure 12: Annual change in US commercial casino gaming revenues, by region, at current prices, 2012-15
Tribal casinos are solid industry contributors
Figure 13: Total US tribal casino gaming revenues and fan chart forecast, at current prices, 2011-21

Market Perspective

Drawing in Millennials with social components
Favorable climate for domestic travel can benefit casino industry
Legal changes to impact industry
Regional cannibalization contributing to declining state gaming revenues

Market Factors

Steadily increasing disposable personal income is good news for leisure
Figure 14: Disposable personal income change from previous period, January 2007-May 2016
Reduced gas prices leaving Americans with more to spend
Figure 15: US gasoline and diesel retail prices, January 2007-May 2016
Student loan debt may be limiting young adults’ non-essential spending
Figure 16: DPI, annually (billions) and student loan debt, Q1 2007- Q1 2016
Travel taking off – may support casino visitation and spending
Figure 17: Total US domestic flight passengers, 2003-15

Key Players – What You Need to Know

Six major brands control half of the US commercial casino market
Rethinking the traditional casino
No longer betting against the house
The reality of daily fantasy sports
The blurring line between reality and virtual reality
Skills may be preferred over pressing their luck

Top US Commercial Casinos

Handful of operators account for bulk of commercial casino industry
Figure 18: US market share of selected commercial casino operators, US net revenues, 2015
MGM Resorts International
Caesars Entertainment Corporation
Gaming still the largest revenue generator
Figure 19: US net revenue breakdown of casino and rooms, by select US commercial casino operators, 2015
Largest brands experience negative global returns
Figure 20: Global net revenues of select US commercial casino operators, 2013-2015

Jackpot – What’s Working?

Enticing extras: Concerts, fights, and spas
Special events attract visitors
Health and wellness options
Fine dining
Daily fantasy sports’ success
Prevalence of mobile and its impact
Are casinos the new adult arcade? Skill-based games may win over luck

Losing Hand – What’s Struggling?

Daily fantasy sports’ gray market
Money laundering causing unnecessary problems
Slot machines losing appeal

Taking a Risk – What’s Next?

iGaming (online casino gambling)
Gambling addiction initiatives
Meeting them where they’re at
Cash cab? More like casino cab
Virtual reality accessible to the common consumer
No (cigarette) butts about it
In a dynamic market, new locations open and unsuccessful ones close
Atlantic City
Las Vegas
Massachusetts

The Consumer – What You Need to Know

Share of Americans who visit casinos year remains flat, about four in 10
Slot machines are the most played casino game among visitors
Visitors see value beyond gambling at casinos
Visitors enjoy related activities outside of the casino
Americans are concerned about their spending at casinos
There are many avenues to consider for increasing visits

Casino Visitation

Casino visitation remains generally consistent over the past decade
Figure 21: Change in casino visitation from the previous year, 2005-15
However, one third of all past visitors are “lapsed”
Figure 22: Casino Visitation, April 2016
Younger adults more likely than older to have visited in last year
Figure 23: Casino visitation, by generation, April 2016
Women less likely to frequent casinos
Figure 24: Casino visitation, by gender, April 2016
Younger men are core visitors
Figure 25: Men’s casino visitation, by age, April 2016
Casinos may be a child-free refuge for Millennial parents
Figure 26: Millennials’ casino visitation, by parent status, April 2016
Household income also determines likelihood of casino visitation
Figure 27: Casino visitation, by household income, April 2016
Hispanic casino lovers
Figure 28: Casino visitation, by Hispanic origin, April 2016

Games Played at Casinos

Loving on the lever: Slot machines still a casino favorite
Figure 29: Casino games, April 2016
Men love their games
Figure 30: Top six casino games played, by gender, April 2016
Most women aren’t interested in unfamiliar games
Figure 31: Casino games least likely to be played and no interest in playing, by gender, April 2016
Millennials show interest in most games
Figure 32: Interest in casino games, by generation, April 2016
Hispanics drawn to gambling
Figure 33: Interest in casino games, by Hispanic origin, April 2016

Motivations for Visiting Casinos

Casinos must include extras beyond gambling
Figure 34: Visit motivation, April 2016
Women prefer slots, men motivated by the atmosphere and gaming
Figure 35: Visit motivation – Select items, by gender, April 2016
Social elements draw a younger crowd, older adults enjoy dining
Figure 36: Visit motivation, by age, April 2016
Hispanics appreciate socializing
Figure 37: Visit motivation – Select items, by Hispanic origin, April 2016

Related Gaming and Casino Activities

Playing games for fun and a chance at a pay-off lead related activities
Figure 38: Related gaming and casino activities, April 2016
Casino visitors enjoy risk in other aspects of their lives
Figure 39: Related gaming and casino activities – Select items, by casino visitation, April 2016
Non-visitors disconnected from casino related activities
Figure 40: Related gaming activities – Select items, by casino visitation, April 2016
Women less interested in risk
Figure 41: Related gaming activities – Select items, by gender, April 2016
Millennials flock to digital
Figure 42: Related gaming activities – Select items, by generation, April 2016
Hispanics drawn to sports and digital
Figure 43: Related gaming activities – Select items, by Hispanic origin, April 2016

Perceptions of Casinos

The potential to overspend is cause for concern
Figure 44: Perceptions of casinos – Any agree, April 2016
To Millennials, casinos are more than just gambling
Figure 45: Perceptions of casinos – Select items – Any agree, by generation, April 2016
Regular casino visitors more strategic about gambling
Figure 46: Perceptions of casinos – Select items – Any agree, by visitation, April 2016
Regulars like to socialize but have issues with the crowds
Figure 47: Perceptions of casinos – Select items – Any agree, by visitation, April 2016
Uninterested non-visitors have awareness and perception issues
Older adults fail to see the allure of casinos
Figure 48: Perceptions of casinos – Select items – Any agree, by age, April 2016
Hispanics see the fun in casinos
Figure 49: Perceptions of casinos – Select items – Any agree, by Hispanic origin, April 2016

What Would Increase Casino Visitation Frequency

Multiple gaming and non-gaming avenues to increase visits
Non-gaming activities
Gaming
Figure 50: What would increase casino visitation frequency, April 2016
One third of adults can’t be persuaded to visit more
Figure 51: What would increase casino visitation frequency– Nothing, by casino visitation, April 2016
Millennials want it all and more
Figure 52: What would increase casino visitation frequency – Select items, by generation, April 2016
Winning-over West and Northeast resident with non-gambling amenities
Figure 53: What would increase casino visitation frequency – Select items, by region, April 2016
Hispanics seek more from casinos
Figure 54: What would increase casino visitation frequency, by race and Hispanic origin, April 2016

Consumer Segmentation

Figure 55: Casino segments, April 2016
Casino Enthusiasts
Demographics
Figure 56: Profile of Casino Enthusiasts, April 2016
Characteristics
Opportunities
Casino Traditionalists
Demographics
Figure 57: Profile of Casino Traditionalists, April 2016
Characteristics
Opportunities
Casino Indifferents
Demographics
Figure 58: Profile of Casino Indifferents, April 2016
Characteristics
Opportunities
Casino Rejectors
Demographics
Figure 59: Profile of Casino Rejectors, April 2016
Characteristics
Opportunities

Appendix – Data Sources and Abbreviations

Data sources
Sales data
Supporting data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms

Appendix – Market

Figure 60: Total US casino gaming revenues and forecast, at current prices, 2011-21
Figure 61: Total US commercial casino gaming revenues and forecast, at current prices, 2011-21
Figure 62: Total US commercial casino gaming revenues and forecast of commercial casinos, at inflation-adjusted prices, 2011-21
Figure 63: Total US tribal casino gaming revenues and forecast, at current prices, 2011-21
Figure 64: Total US tribal casino gaming revenues and forecast, at inflation-adjusted prices, 2011-21
Figure 65: Total US commercial casino gaming revenue, by region, at current prices, 2011-15
Figure 66: Household student loan debt, 2008-16

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