Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising videos
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Recession takes its toll
- With more options, consumers gamble closer to home
- Casino tax revenue is desirable, increasing sites and competition
- Leading commercial casinos see sales decline in 2008
- Marketing and advertising focuses on luxury, service and escapism
- Leisure options reducing penetration in decade-long trend
- Going local—except at the high end
- Clear opportunities for developing the market
- Gambling experience limited
- Loyalty membership high, loyalty low
- Promotions most effective with youngest and oldest
- Men, 35-54s, over-$100Ks leave casinos with highest wins/losses
- Family fun may be attractive to heavy gamblers
- Potential gains to be made by attracting women to tables
- Non-gambling activities driven by income, gender
- Acculturation significant in casino usage among Hispanics
Insights and Opportunities
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- Adults online aged 25-34: Important today, critical for future growth
- Gaming without wagering
- Online gambling as an educational and promotional tool
- More and more tournaments—for everyone and for all types of gambling
- Expand through video gaming terminals
- Hispanic market beckons
Inspire Insights
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- Introduction
- Trend: That's (Home) Entertainment!
- What we've seen
- What to do about it: if you can’t beat ‘em join ‘em
- Tech Trend Focus: Augmented Reality and Tracking our Location
- Tech Bohemia and Nouveau Kitsch
- But we want the guests to gamble, right?
- Unique activities for teens and tweens
Market Size and Forecast
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- Key points
- Growth halts in 2007; revenues remain flat
- Consumers curtail spending on gambling
- Recovery to pre-recessionary levels will be slow
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- Figure 1: Total U.S. gambling revenues, at current prices, 2004-14
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- Figure 2: Total U.S. gambling revenues, at inflation-adjusted prices, 2004-14
Competitive Context
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- Key points
- States’ desire for tax revenues leads to increased competition
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- Figure 3: Casino and racino tax paid to state and local governments, FY 2008 and FY 2009
- Despite illegality, 12% of adults played gambling games online
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- Figure 4: Incidence and frequency of online gambling, by gender, November 2009
- Online gambling to remain illegal
Segment Performance
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- Key points
- Largest commercial casino markets are losing revenue
- Tribal casinos and racinos expanding locations
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- Figure 5: Number of U.S. locations for commercial, tribal, and racetrack casinos, 2006-08
- Figure 6: U.S. casino revenue, segmented by facility type, 2007 and 2009
Segment Performance—Commercial Casinos
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- Key points
- What happens in Vegas, does not stay there
- Declines in penetration and increased competition pressure revenues
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- Figure 7: Total U.S. gambling revenues at commercial casinos, 2004-14
Segment Performance—Tribal Casinos
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- Key points
- Revenue from tribal casinos outpaces the overall casino market
- Expansion mitigates recession’s impact
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- Figure 8: Total U.S. gambling revenues at tribal casinos, 2004-14
Segment Performance—Racetrack Casinos (Racinos)
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- Key points
- Smallest segment, impressive growth
- Growth driven by legalization of racetrack casinos
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- Figure 9: Racino legalization, opening date and format, 1992-2008
- Figure 10: Total U.S gambling revenues at racetrack casinos, 2004-14
Geographic Distribution
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- Key points
- Geographic locations
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- Figure 11: States that participate in casino gambling, 2009
- Nevada and New Jersey remain the largest markets for commercial casinos
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- Figure 12: Consumer spending on commercial casino gaming, by state, 2007-09
- Most markets show significant revenue declines
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- Figure 13: Top 20 U.S. casino markets, by revenue, 2006-08
- Pennsylvania tops in racetrack casinos
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- Figure 14: Top 13 U.S. racetrack casino markets, by revenue, 2006-08
Market Drivers
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- Key points
- When the economy sours, so do gambling revenues
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- Figure 15: Congressional budget office economic projections for calendar years 2009-11
- Households with $100K+ on the rise and more likely to visit casinos
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- Figure 16: Number of households in quintile household income brackets, 2005 and 2008
- Americans saving more
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- Figure 17: Income, savings and savings rate, Q3 2007-Q3 2009
Leading Commercial Casinos
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- Key points
- Sales lag for leading operators
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- Figure 18: Revenue for selected U.S. commercial casino operators*, 2007 and 2008
- Harrah’s Entertainment Inc.
- MGM Mirage
- Ameristar Casinos
- Wynn Resorts
- Pinnacle Entertainment
- Las Vegas Sands
Brand Qualities
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- Introduction
- Wynn Resorts
- Borgata Hotel, Casino & Spa, Atlantic City
- Lumière Place Casino & Hotel
- Trump Entertainment Resorts
- Foxwoods Resort & Casino
Innovation and Innovators
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- Portable sports betting
- Easy weekend access for players
- Guides to games
- Sports “stadium” far more lavish than home entertainment can provide
Advertising and Promotion
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- Key points
- Overall ad expenditures rose among top brands in 2008
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- Figure 19: Media expenditures of leading casino hotel brands, 2007 and 2008
- Loyalty cards and comps anchor in-house marketing efforts
- Web marketing
- Luxury, escape, and winnings
- Luxury accommodations and gaming, together
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- Figure 20: Chukchansi Gold Resort & Casino, July 2009
- Figure 21: Golden Nugget Casino, September 2009
- Escapism
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- Figure 22: Morongo Casino Resort & Spa, October 2009
- Figure 23: Diamond Jack’s Casino, December 2009
- You can win here
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- Figure 24: Station Casinos, December 2009
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- Figure 25: Motor City Casino Hotel, July 2009
Casino Visits: Penetration, Frequency, and Location
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- Key points
- Fewer adults see the appeal of casinos
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- Figure 26: Visited a casino in the past year and frequency of visits, 2000/01-2008/09
- Figure 27: Type/location of casino visited, by geographic region, 2002/03-2008/09
- Affluence impacts visits to Vegas and Atlantic City
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- Figure 28: Incidence and frequency of casino visits and location of casinos visited, by household income, April 2008-June 2009
- Striking differences seen in frequency of visits in online pool by household income
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- Figure 29: Trips to casinos and racinos, by household income, November 2009
- Adults gamble relatively close to home
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- Figure 30: Incidence and frequency of visits, and location visited, by geographic region, April 2008-June 2009
- Participation higher among online respondents
- Aversion to gambling accounts for only one in six respondents
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- Figure 31: Visits to casinos and non-gamblers, by gender, November 2009
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- Figure 32: Visits to casino in past year, by age, November 2009
- Online respondents visit three times as often as offline pool
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- Figure 33: Trips to casino hotels, casinos, racinos, and online casinos, by gender, November 2009
- Frequency of visits by age: seniors lead offline, 25-34s lead online
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- Figure 34: Incidence and frequency of casino visits, by type/location, by age, April 2008-June 2009
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- Figure 35: Trips to gambling outlets, by type of facility, by age, November 2009
Amount Won/Lost on Most Recent Trip
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- Key points
- Men wager three and a half times more than women
- 35-54s wager the most; yet 21-34s make the most visits
- Highest-income households wager the most
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- Figure 36: Total amount won/lost on last gambling visit, by gender, age and household income, November 2009
Developing the Market
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- Key points
- More opportunities via tournaments, education and environment
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- Figure 37: Opportunities to develop the market, by gender, November 2009
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- Figure 38: Opportunities to develop the market, by age, November 2009
Gambling Experience
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- Key points
- Most adults are not regular gamblers, even casually
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- Figure 39: Knowledge of games and participation outside of the casino, by gender, November 2009
- Young adults online more knowledgeable, more active outside casinos
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- Figure 40: Knowledge of games and participation outside of the casino, by age, November 2009
- Affluent more knowledgeable about games, more likely to gamble outside casino
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- Figure 41: Knowledge of games and participation outside of the casino, by household income, November 2009
Impact of Loyalty Programs and Promotions
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- Key points
- About half of gamblers have a loyalty card
- Promotional offers not prerequisites for vast majority
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- Figure 42: Gambling participation, by age, November 2009
Gambling Behavior
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- Gambling is entertainment for most
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- Figure 43: Attitudes toward gambling, by gender, November 2009
- Young adults less likely to set a budget; more likely to expect to win
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- Figure 44: Attitudes toward gambling, by age, November 2009
Gaming Preferences
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- Key points
- Slots, blackjack and video poker are the most popular games
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- Figure 45: Games usually played at the casino, by gender, November 2009
- Young adults more likely to bet on sports and table games
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- Figure 46: Games usually played at the casino, by age, November 2009
Non-Gaming Activity at Casinos
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- Key points
- Fewer than one in three engage in activities besides eating, gambling
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- Figure 47: Non-gaming casino activity participation, by gender, November 2009
- 25-54s more keen on non-gaming activities
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- Figure 48: Non-gaming casino activity participation, by age, November 2009
- Broader packages for the well heeled
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- Figure 49: Non-gaming casino activity participation, by household income, November 2009
Choice of Accommodation
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- Promotional offers and past experience significant factors
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- Figure 50: Important attributes when selecting a hotel for overnight trip to a casino, by gender, November 2009
- One in four gamble only at a single location
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- Figure 51: Single casino gambling while away from home, by gender, November 2009
Race and Hispanic Origin
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- Key points
- Casino visits
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- Figure 52: Incidence, frequency, and location of casino visits, by race/Hispanic origin, April 2008-June 2009
- The role of acculturation and language in Hispanic participation
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- Figure 53: Incidence and frequency of casino visits among Hispanics, by language spoken at home, April 2008-June 2009
- Developing the market
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- Figure 54: Opportunities to develop the market, by race/Hispanic origin, November 2009
- Gambling experience
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- Figure 55: Gambling experience, by race/Hispanic origin, November 2009
- Impact of loyalty and promotional activities
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- Figure 56: Use of loyalty cards and promotions, by race/Hispanic origin, November 2009
- Blacks looking to win, gambling the largest amounts
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- Figure 57: Casino visit attitudes, by race/Hispanic origin, November 2009
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- Figure 58: Games usually played at the casino, by race/Hispanic origin, November 2009
- Non-gaming activity at casinos
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- Figure 59: Non-gaming activities participated in at the casino, by race/Hispanic origin, November 2009
Cluster Analysis
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- High Rollers
- Old Dogs
- The Well Rounded
- Characteristic tables
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- Figure 60: Casino gambling clusters, November 2009
- Figure 61: Frequency of visitation, by casino gambling clusters, November 2009
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- Figure 62: Opportunities to develop the market, by casino gambling clusters, November 2009
- Figure 63: Gambling behavior and attitudes, by casino gambling clusters, November 2009
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- Figure 64: Amount won/lost on most recent trip, by casino gambling clusters, November 2009
- Figure 65: Games played, by casino gambling clusters, November 2009
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- Figure 66: Activity participation, by casino gambling clusters, November 2009
- Demographic tables:
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- Figure 67: Casino gambling clusters, by gender, November 2009
- Figure 68: Casino gambling clusters, by age, November 2009
- Figure 69: Casino gambling clusters, by household income, November 2009
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- Figure 70: Casino gambling clusters, by race, November 2009
- Figure 71: Casino gambling clusters, by Hispanic origin, November 2009
- Cluster methodology
Custom Consumer Groups
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- Casino visits
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- Figure 72: Trips to gambling outlets among 21-34s, by type of facility, by race/Hispanic origin, November 2009
- Developing the market
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- Figure 73: Opportunities to develop the market among 21-34s, by race/Hispanic origin, November 2009
- Gambling experience
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- Figure 74: Gambling participation among 21-34s, by race/Hispanic origin, November 2009
Appendix: Other Useful Consumer Tables
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- Figure 75: Opportunities to develop the market, by household income, November 2009
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- Figure 76: Loyalty program and promotional offer participation, by household income, November 2009
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- Figure 77: Attitudes toward gambling at casinos, by household income, November 2009
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- Figure 78: Games played at the casino, by household income, November 2009
- Lower income online groups less likely to visit a casino
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- Figure 79: Visits to casinos and non-gamblers, by household income, November 2009
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Appendix: Trade Associations
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