Casino and Casino-style Gambling - US

Published by: Mintel International Group Ltd.

Published: Jan. 1, 2010 - 86 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising videos

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

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

MARKET SIZE AND FORECAST

Key points

Growth halts in 2007; revenues remain flat

Consumers curtail spending on gambling

Recovery to pre-recessionary levels will be slow

Figure 1: Total U.S. gambling revenues, at current prices, 2004-14

Figure 2: Total U.S. gambling revenues, at inflation-adjusted prices, 2004-14

COMPETITIVE CONTEXT

Key points

States’ desire for tax revenues leads to increased competition

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

Figure 4: Incidence and frequency of online gambling, by gender, November 2009

Online gambling to remain illegal

SEGMENT PERFORMANCE

Key points

Largest commercial casino markets are losing revenue

Tribal casinos and racinos expanding locations

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

Key points

What happens in Vegas, does not stay there

Declines in penetration and increased competition pressure revenues

Figure 7: Total U.S. gambling revenues at commercial casinos, 2004-14

SEGMENT PERFORMANCE—TRIBAL CASINOS

Key points

Revenue from tribal casinos outpaces the overall casino market

Expansion mitigates recession’s impact

Figure 8: Total U.S. gambling revenues at tribal casinos, 2004-14

SEGMENT PERFORMANCE—RACETRACK CASINOS (RACINOS)

Key points

Smallest segment, impressive growth

Growth driven by legalization of racetrack casinos

Figure 9: Racino legalization, opening date and format, 1992-2008

Figure 10: Total U.S gambling revenues at racetrack casinos, 2004-14

GEOGRAPHIC DISTRIBUTION

Key points

Geographic locations

Figure 11: States that participate in casino gambling, 2009

Nevada and New Jersey remain the largest markets for commercial casinos

Figure 12: Consumer spending on commercial casino gaming, by state, 2007-09

Most markets show significant revenue declines

Figure 13: Top 20 U.S. casino markets, by revenue, 2006-08

Pennsylvania tops in racetrack casinos

Figure 14: Top 13 U.S. racetrack casino markets, by revenue, 2006-08

MARKET DRIVERS

Key points

When the economy sours, so do gambling revenues

Figure 15: Congressional budget office economic projections for calendar years 2009-11

Households with $100K+ on the rise and more likely to visit casinos

Figure 16: Number of households in quintile household income brackets, 2005 and 2008

Americans saving more

Figure 17: Income, savings and savings rate, Q3 2007-Q3 2009

LEADING COMMERCIAL CASINOS

Key points

Sales lag for leading operators

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

Introduction

Wynn Resorts

Borgata Hotel, Casino & Spa, Atlantic City

Lumière Place Casino & Hotel

Trump Entertainment Resorts

Foxwoods Resort & Casino

INNOVATION AND INNOVATORS

Portable sports betting

Easy weekend access for players

Guides to games

Sports “stadium” far more lavish than home entertainment can provide

ADVERTISING AND PROMOTION

Key points

Overall ad expenditures rose among top brands in 2008

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

Figure 20: Chukchansi Gold Resort & Casino, July 2009

Figure 21: Golden Nugget Casino, September 2009

Escapism

Figure 22: Morongo Casino Resort & Spa, October 2009

Figure 23: Diamond Jack’s Casino, December 2009

You can win here

Figure 24: Station Casinos, December 2009

Figure 25: Motor City Casino Hotel, July 2009

CASINO VISITS: PENETRATION, FREQUENCY, AND LOCATION

Key points

Fewer adults see the appeal of casinos

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

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

Figure 29: Trips to casinos and racinos, by household income, November 2009

Adults gamble relatively close to home

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

Figure 31: Visits to casinos and non-gamblers, by gender, November 2009

Figure 32: Visits to casino in past year, by age, November 2009

Online respondents visit three times as often as offline pool

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

Figure 34: Incidence and frequency of casino visits, by type/location, by age, April 2008-June 2009

Figure 35: Trips to gambling outlets, by type of facility, by age, November 2009

AMOUNT WON/LOST ON MOST RECENT TRIP

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

Figure 36: Total amount won/lost on last gambling visit, by gender, age and household income, November 2009

DEVELOPING THE MARKET

Key points

More opportunities via tournaments, education and environment

Figure 37: Opportunities to develop the market, by gender, November 2009

Figure 38: Opportunities to develop the market, by age, November 2009

GAMBLING EXPERIENCE

Key points

Most adults are not regular gamblers, even casually

Figure 39: Knowledge of games and participation outside of the casino, by gender, November 2009

Young adults online more knowledgeable, more active outside casinos

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

Figure 41: Knowledge of games and participation outside of the casino, by household income, November 2009

IMPACT OF LOYALTY PROGRAMS AND PROMOTIONS

Key points

About half of gamblers have a loyalty card

Promotional offers not prerequisites for vast majority

Figure 42: Gambling participation, by age, November 2009

GAMBLING BEHAVIOR

Gambling is entertainment for most

Figure 43: Attitudes toward gambling, by gender, November 2009

Young adults less likely to set a budget; more likely to expect to win

Figure 44: Attitudes toward gambling, by age, November 2009

GAMING PREFERENCES

Key points

Slots, blackjack and video poker are the most popular games

Figure 45: Games usually played at the casino, by gender, November 2009

Young adults more likely to bet on sports and table games

Figure 46: Games usually played at the casino, by age, November 2009

NON-GAMING ACTIVITY AT CASINOS

Key points

Fewer than one in three engage in activities besides eating, gambling

Figure 47: Non-gaming casino activity participation, by gender, November 2009

25-54s more keen on non-gaming activities

Figure 48: Non-gaming casino activity participation, by age, November 2009

Broader packages for the well heeled

Figure 49: Non-gaming casino activity participation, by household income, November 2009

CHOICE OF ACCOMMODATION

Promotional offers and past experience significant factors

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

Figure 51: Single casino gambling while away from home, by gender, November 2009

RACE AND HISPANIC ORIGIN

Key points

Casino visits

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

Figure 53: Incidence and frequency of casino visits among Hispanics, by language spoken at home, April 2008-June 2009

Developing the market

Figure 54: Opportunities to develop the market, by race/Hispanic origin, November 2009

Gambling experience

Figure 55: Gambling experience, by race/Hispanic origin, November 2009

Impact of loyalty and promotional activities

Figure 56: Use of loyalty cards and promotions, by race/Hispanic origin, November 2009

Blacks looking to win, gambling the largest amounts

Figure 57: Casino visit attitudes, by race/Hispanic origin, November 2009

Figure 58: Games usually played at the casino, by race/Hispanic origin, November 2009

Non-gaming activity at casinos

Figure 59: Non-gaming activities participated in at the casino, by race/Hispanic origin, November 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Figure 60: Opportunities to develop the market, by household income, November 2009

Figure 61: Loyalty program and promotional offer participation, by household income, November 2009

Figure 62: Attitudes toward gambling at casinos, by household income, November 2009

Figure 63: Games played at the casino, by household income, November 2009

Lower income online groups less likely to visit a casino

Figure 64: Visits to casinos and non-gamblers, by household income, November 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Among all age brackets in Mintel’s online survey, 25-34s made the most trips to each type of casino in the last 12 months. Although their average amount won or lost on their last visit ($298) is lower than it is for all adults ($331) or adults aged 35-44 ($591), they visit more often and appear to have a greater interest in most forms of gambling. These young adults are more likely to bet on sports, play online, and have interest in participating in tournaments. They also appear to take part in more non-gaming activities (dining, shopping, nightclubs) on each trip (about 2.5 activities), compared to all adults (2.1 activities).

These findings also suggest that casinos may want to consider targeting this segment with:

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