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Casino and Casino-style Gambling - US - June 2014

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Gross gaming revenues recover, to reach $66B in 2014
Figure 1: Fan chart forecast of total US gaming revenues at current prices with best- and worst-case scenarios, 2009-19
Economic conditions, young men drive spending
Competition intensifies
Figure 2: Attitudes toward online gaming, March 2014
Las Vegas Sands, Caesars largest commercial casino operators
Figure 3: Global net revenues of selected US commercial casino operators, 2012 and 2013
Marketing programs include loyalty programs, comps, big bucks
The consumer
Three quarters of all adults 21+ have visited a casino
Online gambling sites and offline casinos
Figure 4: Casino visitation, by online casino/gambling site visitors, March 2014
Average amount wagered tops $300
More than nine in 10 adults usually gamble when they visit the casino
Figure 5: Casino games usually played, March 2014
No single offering will increase casino visits
Figure 6: What would encourage casino visits, March 2014
Most adults hold positive attitudes about casinos
Figure 7: Attitudes toward casinos, March 2014
Hispanic market has potential
What we think
ISSUES AND INSIGHTS
Has the expansion of gambling gone too far?
The issues
The implications
Are young adult men the ticket to future growth?
The issues
The implications
Is online gambling a threat to traditional casinos?
The issues
The implications
TREND APPLICATIONS
Trend: Let’s Make A Deal
Trend: Experience Is All
Trend: Prepare for the Worst
MARKET SIZE AND FORECAST
Key points
Revenues return to prerecessionary levels
Expansion hasn’t yielded a commensurate increase in growth
Stronger growth prospects between 2014 and 2019
Figure 8: Total US gaming revenues, at current prices, 2009-19
Figure 9: Total US gaming revenues, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 10: Fan chart forecast of total US gaming revenues at current prices with best- and worst-case scenarios, 2009-19
MARKET DRIVERS
Key points
The economy
Figure 11: Real (inflation-adjusted) GDP (not seasonally adjusted), 2009-13
Figure 12: Real (inflation-adjusted) GDP, economic projections by calendar year, 2014-19 (percentage change)
Household income and savings
Figure 13: Median household income at inflation-adjusted prices (2012 dollars, not seasonally adjusted), 2005-12
Disposable personal income and personal savings
Figure 14: Annual disposable personal income and personal savings in current dollars, 2009-13
Critical demographic segment growing faster than population as a whole
Figure 15: US male population and total population aged 25-34, 2012, 2015, 2020
Gambling is a part of many vacations
Figure 16: Usually visits a casino while on vacation, by age, March 2014
Consumers feeling positive enough to resume traveling
Figure 17: The Traveler Sentiment Index™, March 2007–February 2014
COMPETITIVE CONTEXT
Key points
Legal online gambling in its infancy; illegal sites are well established
Figure 18: Online casino or gambling site visitation in the last 12 months, by gender, March 2014
Figure 19: Attitudes toward online gaming, March 2014
Other entertainment options
Figure 20: Entertainment and leisure options, 2013
SEGMENT PERFORMANCE
Key points
Number of commercial and tribal casinos continues to expand
Figure 21: Number of US locations for commercial, tribal, and racetrack casinos, 2008-12
Commercial casino segment continues its market share lead
Figure 22: US casino share of sales, by segment, at current prices, 2012 and 2014
SEGMENT PERFORMANCE – COMMERCIAL CASINOS
Key points
Revenues return to prerecession level
A forecast of modest growth
Figure 23: Total US commercial casinos gaming revenues at current prices, 2009-19
Figure 24: Total US commercial casinos gaming revenues at inflation-adjusted prices, 2009-19
SEGMENT PERFORMANCE – TRIBAL CASINOS
Key points
Years of blockbuster growth come to an end
Tribal casino revenue forecast to increase about 2% annually
Figure 25: Total US tribal casinos gaming revenues at current prices, 2009-19
Figure 26: Total US tribal casinos gaming revenues at inflation-adjusted prices, 2009-19
GEOGRAPHIC DISTRIBUTION
Key points
More jurisdictions, more competition
Figure 27: States that participate in casino gambling, by category, 2012
Souring odds
Figure 28: Top US casino markets, by revenue, 2010-12
LEADING COMMERCIAL CASINOS
Key points
Largest commercial casinos own the leading brands
Figure 29: Global net revenues of selected US commercial casino operators, 2012 and 2013
Las Vegas Sands
Caesars Entertainment
MGM Resorts
INNOVATIONS AND INNOVATORS
Props & Hops
Big Data contributes to identification of problem gamblers
Entertainment-branded slots
IGT’s DoubleDown Interactive
MARKETING STRATEGIES
Key points
Overview
Figure 30: Annual advertising costs of leading commercial casinos, 2012 and 2013
Loyalty programs and promotional allowances
Television and video advertising (broadcast or internet)
Figure 31: MGM Grand Las Vegas, television ad, November 2013
Figure 32: The Cosmopolitan Las Vegas, Misfit Right, television ad, July 2013
Figure 33: The Palazzo and Venetian Las Vegas, television ad, April 2011
SOCIAL MEDIA
Key points
Market overview
Key social media metrics
Figure 34: Key performance indicators, selected casino brands, April 21, 2013-April 20, 2014
Brand usage and awareness
Figure 35: Brand usage and awareness of casino brands, April 2014
Interaction with brands
Figure 36: Interaction with casino brands, April 2014
Leading online campaigns
Social media loyalty programs
Figure 37: Selected MGM Grand hotel Twitter mentions, May 2, 2014
Online gaming
What we think
Online conversations
Figure 38: Online mentions, selected casino brands, April 21, 2013-April 20, 2014
Where are people talking about casino brands?
Figure 39: Mentions, by page type, selected casino brands, April 21, 2013-April 20, 2014
What are people talking about online?
Figure 40: Mentions, by topic of conversation, selected casino brands, April 21, 2013-April 20, 2014
CASINO VISITATION TRENDS
Key points
About three in 10 adults visit a casino each year
Figure 41: Incidence of visiting a casino in the past 12 months, January 2005-December 2013
Tribal casinos and Vegas still reign supreme but new locations make inroads
Figure 42: Location of casino(s) visited in the past 12 months, January 2005-December 2013
CASINO VISITATION
Key points
Men are much more likely than women to be regular casino visitors
Figure 43: Casino visitation, by gender, March 2014
Young men are most frequent casino visitors
Figure 44: Casino visitation, by gender and age, March 2014
Casino visits more likely among adults with higher incomes
Figure 45: Casino visitation, by household income, March 2014
OTHER GAMING PARTICIPATION
Key points
Half of adults purchase lottery or scratch-off tickets
Figure 46: Other gaming participation, by gender, March 2014
Men 21-34 most likely to visit online gambling sites
Figure 47: Other gaming participation, by gender and age, March 2014
“Other gaming” holds greatest interest for adults with children
Figure 48: Other gaming participation, by presence of children under 18 living in household, March 2014
Visitors to online gambling sites most likely to be regular casino goers
Figure 49: Casino visitation, by other gaming participation, March 2014
Regular casino goers most likely to have visited an online gambling site
Figure 50: Other gaming participation, by casino visitation, March 2014
Video gambling players also more likely to visit an online casino
Figure 51: Other gaming participation, by other gaming participation, March 2014
SPENDING AT THE CASINO
Key points
Almost half of casino visitors wager $100+ while 15% wager nothing
Figure 52: Amount spent during most recent casino visit, March 2014
Casino visitors wagered about $322; men wagered twice as much as women
Figure 53: Amount spent during most recent casino visit – average, by gender, March 2014
Adults 25-34 are by far the biggest spenders at casinos
Figure 54: Amount spent during most recent casino visit – average, by age, March 2014
Men 21-34 wager the most and spend freely on entertainment
Figure 55: Amount spent during most recent casino visit – average, by gender and age, March 2014
Casino visitors from higher income households spend more
Figure 56: Amount spent during most recent casino visit – average, by household income, March 2014
Adults from households with children spend more at the casino
Figure 57: Amount spent during most recent casino visit – average, by presence of children under 18 living in household, March 2014
Regular casino visitors wagered $828 on last visit
Figure 58: Amount spent during most recent casino visit – average, by casino visitation, March 2014
Other gaming participation correlates with higher spending at the casino
Figure 59: Amount spent during most recent casino visit – average, by other gaming participation, March 2014
Table game players outspend other gamblers
Figure 60: Amount spent during most recent casino visit – average, by casino games usually played, March 2014
CASINO EXPERIENCES AND ATTITUDES
Key points
Most casino visitors set a budget for gambling
Figure 61: Casino experiences and attitudes, March 2014
Likelihood of setting a gambling budget increases with age
Figure 62: Casino experiences and attitudes, by age, March 2014
Younger men least likely to set a budget or expect to lose
Figure 63: Casino experiences and attitudes, by gender and age, March 2014
CASINO GAMES
Key points
Men more likely to play table games; women prefer the slots
Figure 64: Casino games usually played, by gender, March 2014
Older adults favor machines/slots over table games
Figure 65: Casino games usually played, by age, March 2014
Eight in 10 men aged 21-34 play table games
Figure 66: Casino games usually played, by gender and age, March 2014
Slots are the king among adults who only play one type of casino game
Figure 67: Casino games usually played, by count of casino games usually played, March 2014
WHAT WOULD ENCOURAGE CASINO VISITS
Key points
No single offering will increase casino visits
Figure 68: What would encourage casino visits, by gender, March 2014
Start early to build loyalty
Figure 69: What would encourage casino visits, by gender and age, March 2014
Potential casino visitors enticed by discounts, amenities, and protections
Figure 70: What would encourage casino visits, by casino visitors versus potential visitors, March 2014
Adults who play multiple games most open to all sorts of incentives
Figure 71: What would encourage casino visits, by count of casino games usually played, March 2014
ATTITUDES TOWARD CASINOS
Key points
Two thirds of adults agree that casinos are exciting
Figure 72: Attitudes toward casinos, March 2014
Some warning signs for casinos regarding older consumers
Figure 73: Attitudes toward casinos, by age, March 2014
Casinos alienating for adults 55+
Figure 74: Attitudes toward casinos, by gender and age, March 2014
Potential visitors have less positive attitudes about casinos/gambling
Figure 75: Attitudes toward casinos, by casino visitors versus potential visitors, March 2014
Most positive attitudes among adults who play 4+ casino games
Figure 76: Attitudes toward casinos, by count of casino games usually played, March 2014
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Fewer Blacks have visited a casino
Figure 77: Casino visitation, by race/Hispanic origin, March 2014
Asians and Hispanics are most likely to have visited an online casino
Figure 78: Other gaming participation, by race/Hispanic origin, March 2014
Hispanics spend more at the casino than other adults do
Figure 79: Amount spent during most recent casino visit – average, by race/Hispanic origin, March 2014
Whites are more likely than others to expect to lose at the casino
Figure 80: Casino experiences and attitudes, by race/Hispanic origin, March 2014
Hispanics more likely than White or Black adults to play table games
Figure 81: Casino games usually played, by race/Hispanic origin, March 2014
Closer proximity could attract more Blacks and Hispanics to casinos
Figure 82: What would encourage casino visits, by race/Hispanic origin, March 2014
Hispanics have most positive attitudes about casinos
Figure 83: Attitudes toward casinos, by race/Hispanic origin, March 2014
CLUSTER ANALYSIS
Figure 84: Target clusters, March 2014
Highly Engaged
Characteristics
Opportunity
Indifferent
Characteristics
Opportunity
Casual
Characteristics
Opportunity
Cluster characteristic tables
Figure 85: Casino visitation, by casino clusters, March 2014
Figure 86: Other gaming participation, by casino clusters, March 2014
Figure 87: Amount spent during most recent casino visit – average, by casino clusters, March 2014
Figure 88: Casino experiences and attitudes, by casino clusters, March 2014
Figure 89: Casino games usually played, by casino clusters, March 2014
Figure 90: What would encourage casino visits, by casino clusters, March 2014
Figure 91: Attitudes toward casinos, by casino clusters, March 2014
Cluster demographic tables
Figure 92: Casino clusters, by key demographics, March 2014
Cluster methodology
APPENDIX – OTHER USEFUL CONSUMER TABLES
Casino visitation
Figure 93: Incidence of visiting a casino in the past 12 months, January 2005-December 2013
Figure 94: Casino visitation, by age, March 2014
Figure 95: Casino visitation, by census regions – divisions, March 2014
Figure 96: Casino visitation, by gender and income, March 2014
Figure 97: Casino visitation, by count of casino games usually played, March 2014
Other gaming participation
Figure 98: Other gaming participation, by age, March 2014
Figure 99: Other gaming participation, by household income, March 2014
Figure 100: Other gaming participation, by count of casino games usually played, March 2014
Figure 101: Other gaming participation, by casino visitors versus potential visitors, March 2014
Spending at the casino
Figure 102: Amount spent during most recent casino visit – average, by casino visitation, March 2014
Figure 103: Amount spent during most recent casino visit – average, by gender, March 2014
Figure 104: Amount spent during most recent casino visit – average, by other gaming participation, March 2014
Figure 105: Amount spent during most recent casino visit – average, by casino games usually played, March 2014
Figure 106: Amount spent during most recent casino visit – average, by count of casino games usually played, March 2014
Casino experiences and attitudes
Figure 107: Casino experiences and attitudes, by gender, March 2014
Figure 108: Casino experiences and attitudes, by household income, March 2014
Figure 109: Casino experiences and attitudes, by count of casino games usually played, March 2014
Casino games usually played
Figure 110: Casino games usually played, by gender, March 2014
Figure 111: Casino games usually played, by household income, March 2014
What would encourage casino visits
Figure 112: What would encourage casino visits, by gender, March 2014
Figure 113: What would encourage casino visits, by age, March 2014
Figure 114: What would encourage casino visits, by household income, March 2014
Attitudes toward casinos
Figure 115: Attitudes toward casinos, by gender, March 2014
Figure 116: Attitudes toward casinos, by household income, March 2014
3D slot machines
Figure 117: Experience with 3D slot machines online, by gender, March 2014
APPENDIX – SOCIAL MEDIA
Online conversations
Figure 118: Online mentions, selected casino brands, April 21, 2013-April 20, 2014
Brand analysis
Figure 119: MGM Grand key social media indicators, April 2014
Figure 120: The Cosmopolitan Las Vegas key social media indicators, April 2014
Figure 121: The Venetian Las Vegas key social media indicators, April 2014
Figure 122: Caesars Palace Las Vegas key social media indicators, April 2014
Figure 123: Foxwoods Resort Sonicare key social media indicators, April 2014
Figure 124: ARIA Resort & Casino key social media indicators, April 2014
Brand usage or awareness
Figure 125: Brand usage or awareness, April 2014
Figure 126: The Venetian usage or awareness, by demographics, April 2014
Figure 127: Caesars Palace Hotel & Casino Las Vegas usage or awareness, by demographics, April 2014
Figure 128: MGM Grand Hotel & Casino Las Vegas usage or awareness, by demographics, April 2014
Figure 129: The Cosmopolitan Las Vegas usage or awareness, by demographics, April 2014
Figure 130: ARIA Resort & Casino usage or awareness, by demographics, April 2014
Figure 131: Foxwoods Resort Casino usage or awareness, by demographics, April 2014
Activities done
Figure 132: Activities done, April 2014
Figure 133: The Venetian – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 134: The Venetian – Activities done – I have contacted/interacted with the brand online on social media, by demographics, April 2014
Figure 135: The Venetian – Activities done – I follow/like the brand on social media, by demographics, April 2014
Figure 136: The Venetian – Activities done – I have researched the brand on social media, by demographics, April 2014
Figure 137: Caesars Palace Hotel & Casino Las Vegas – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 138: Caesars Palace Hotel & Casino Las Vegas – Activities done – I have contacted/interacted with the brand online on social media, by demographics, April 2014
Figure 139: Caesars Palace Hotel & Casino Las Vegas – Activities done – I follow/like the brand on social media because, by demographics, April 2014
Figure 140: Caesars Palace Hotel & Casino Las Vegas – Activities done – I have researched the brand on social media, by demographics, April 2014
Figure 141: MGM Grand Hotel & Casino Las Vegas – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 142: MGM Grand Hotel & Casino Las Vegas – Activities done –I have contacted/interacted with the brand online on social media, by demographics, April 2014
Figure 143: MGM Grand Hotel & Casino Las Vegas – Activities done – I follow/like the brand on social media, by demographics, April 2014
Figure 144: MGM Grand Hotel & Casino Las Vegas – Activities done –I have researched the brand on social media, by demographics, April 2014
Figure 145: The Cosmopolitan Las Vegas – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 146: The Cosmopolitan Las Vegas – Activities done – I have contacted/interacted with the brand online on social media, by demographics, April 2014
Figure 147: The Cosmopolitan Las Vegas – Activities done – I follow/like the brand on social media because, by demographics, April 2014
Figure 148: The Cosmopolitan Las Vegas – Activities done – I have researched the brand on social media, by demographics, April 2014
Figure 149: ARIA Resort & Casino – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 150: Foxwoods Resort Casino – Activities done – I have looked up/talked about this brand online on social media, by demographics, April 2014
Figure 151: Foxwoods Resort Casino – Activities done – I have researched the brand on social media to, by demographics, April 2014
APPENDIX – TRADE ASSOCIATIONS

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