Future operators will look very different than how they look now. The Casinos know that while baby boomers are their main customer base as they account more than half of their revenue every year, they are becoming a graying demographic. Moreover, most of them are about a decade from not having enough in retirement savings to make gaming the fun diversion it was once.
Slots are currently the game of choice for these gamblers, and they now make 75% of the $60b in the annual gambling revenue in the United States. However, these machines have slowly fallen.
Two casinos believe that they have an idea what the future gambling base will be like, but they are completely different from one another.
Caesars Entertainment is the first to take advantage of that they believe that will appeal to the millennial players as it will introduce a measure of skill to the equation.
The traditional one-armed bandits will hold a little appeal to this customer base.
The traditional one-armed machines do not hold much appeal to the Millennials, because they are relatively boring, regardless of the potential payout. Moreover, while lottery terminals used to be seen as a means of attracting younger players, they are still a game of chance with no hope of having the player influence the outcome.
However, Penn National Gaming does not see the percentage in chasing millennials. On the regional casino’s last earnings conference, the Chief Executive Tim Wilmott stated that if they focus on the millennials, they will not end up with good economic results for the next five or ten years.
Moreover, we agree that he may have a point. If we consider the popularity of poker and the explosion of mobile and online opportunities, millennials are certainly the most tech-savvy gambling generation around. They are an educated demographic, and despite the fact that he shows up in places such as Las Vegas in record numbers, most of them still choose not to wager in land-based casinos.