The slot machine market is expected to grow by $14.09 billion between 2020 and 2024, at a CAGR of 15%. Slot machines make up 80% of casino revenue. Some trends in the casino gambling industry, both traditional and online, include the use of cryptocurrency and cashless payment methods. After conducting an in-depth search, we were able to provide insights and trends into the casino culture.
General Insights on Casino Culture
- The gambling market in the United States can be segmented by game type, end-use, and geography.
- The online gambling market in the United States is projected to grow at a CAGR of 41%between the year 2020 to 2025, and Pennsylvania leads in growth.
- In 2017, the total gross gaming revenue of Pennsylvania casinos was approximately $3226.92 million, according to the information published by the AGA (American Gaming Association).
- Globally, the online gambling market size is projected to reach $127.3 billionby the year 2027.
- Some factors that promote this growth include the increasing use of smartphones, easy access to casino gaming platforms, the presence of cost-effective mobile apps, secure digital payment options.
Trends in Casino Gambling (Slot machines)
Upgrade of Slot Machines
- In a bid to attract the younger generation, casinos incorporate slot machines that are technologically equipped with skill elements, given that younger people grew up playingvideo games and consoleswith skill-oriented gaming features.
- Upgrading slot machines is a move by a majority of casinos to promote the entertainment of old clients and attract new clientele.
- Casino operators want to maintain a “fresh and new” feel for the customers.
Cashless and card-less:
- Due to a growing need to simplify paying at the slot machines, slot manufactures have created systems that allow the players to purchase credits through deposits accounts or tapping debit/credit card balances through swapping the players’ smartphone.
- Players can now also use the smartphones to activate their slot club accountreplacing the traditional mag-stripe card. As more states in the United States ease regulations related to payment at casinos, more companies in the industry will replace the use of cash.
- Casinos such as D Las Vegas and Golden Gate support the use of bitcoins to pay. Bitcoin is low fraud-risk, supports easy deposits, doesn’t attract transaction fees, promotes international transactions, and offer quick payments. These advantages increase customer satisfaction and enhances the gambling experiencesat slot machines.
A Decline in Land-Based Casinos
- The online version of casinos in the United States has posed competition to the land-based casinos,causing a rapid decline as most people now prefer gambling online.
- Over the past year, there has been a decrease in rates as players don’t need to go to a real physical casino. The traditional brick and mortarcasinos, with slot machines, are concentrated in one place like Jersey Shore or Las Vegas, and people would have to spend money to get there. The customers resort to online casino sites to save on incidental costs and transport.
- According to consumers, online casinos are convenient, more private, and give a vibrant gaming experienceas the games undergo routine upgrades from time to time. Land-based casinos have limited games.
Trends in Casino Gambling (online gambling)
Cryptocurrency Set to Dominate
- A majority of online gambling casinoshave started to accept the use of cryptocurrencies on their sites. Digital currencies are used from making withdrawals, gameplay, and even when making deposits.
- Consumers enjoy using cryptocurrencies because it is secure, hacking and identity theft is minimized. Crypto also provides anonymity as cryptocurrency is untraceable.
VR Based Gaming on the Rise
- Virtual Reality (VR) technology is used to improve the online casino experience. The vast availability of VR to the public in the United States has pushed for the development of VR-based casinos, which are accessible from homes.
- Net Entertainment, a software provider in the United States, developed a VR demo for the online Beanstalk slot machinegame and the Jack casino game, which has prompted consumers to demand VR capabilities for other online casino gambling games as well.
Smartwatches in Casino Gaming Experience
- The use of smartwatches to place bets in online casino gambling is a trend that picked up rapidly. Consumers connect to online casinos via their smartwatches, which is convenient and a quick access option.
Opportunities/Challenges Casino Operators face
Attracting Younger Crowd
- Casinos are looking to attract new customers and, at the same time, retain the old ones. Due to this, the casinos have the challenge ofintegrating new technologiesand upgrades in demand to the consumers’ gaming/gambling needs.
- Casinos are forced to implement slot machines with skill element tothem, to attract young guests.
State Regulations
- Some states in the United States allow gambling and casinoadvertisements while some do not. States that allow online casinos include New Jersey, Pennsylvania, West Virginia, Delaware, Oregon, and states that do not include Indiana, Iowa, Nevada, New Hampshire.
- Options to operate casinos nationally in the United States are limited, so smaller online venturesonly show in selected states.
Bankruptcy
- According to the sector experts, casino gaming operators could soon seek bankruptcy protectionif they continue to operate after the Covid-19 pandemic closed operations.
- Recent research by Macquarie suggested that casino companies in the United States currently have between 2to 14.3 months before going bankrupt.
- The Monarch Casino & Resort, Century Casinos, spend between $200,000to $300,000 of money daily and have between 8 to 14.3 months of cash available.
- The Golden Entertainment Casino is using $1,000,000daily and has 4 months of cash available.
Factors that Motivate People to Gamble in Casinos
Number of Terminal Machines
- According to a study conducted in account-based gambling, that resulted in 153,379observations, 93,034 individual players/gamblers were analyzed. The gambling frequency at the casino slot machines was higher in locations with 2 to 5 terminals, an equivalent to 5%.
- Casinos with 11 to 16slot machine terminals accounted for 6% of the overall gambling. This goes to show that the number of terminal machines present in an establishment plays a part in attracting consumers.
Social Interaction
- People go to land-based casinosfor social interaction as well. Gamblers prefer spending time with people they share interests with, and in the traditional casino, there are all types of people.
- In a casino, people play on the slot machines while chatting with the players nextto them. This also presents an opportunity to meet and engage new people.
- Slot machines in casinos are designed to give the players small wins to provide them the “adrenaline rush” as they spend more money. The adrenaline rush is addictive, and excitement seekers in casinos make the largest group of slot players, around 5%, according to research.
Immediate Payout
- In order to attract customers, slot machines in the casinos are often displayed to be bright, shiny, trendy, to have flashy lights, and have sounds and music that lure potential customers.
- According to research by Mike J. Dixon et al., gambling is a form of escape, and consumers need the slot machines to provide ultimate entertainment. Payoffs from slot machines are immediate, unlike lotteries and some other types of gambling, and are often accompanied by victory music and high-tech animationsfor enjoyment.
- Due to a “variable-ratio reinforcement schedule,” slot machines are unpredictable by nature.
Factors that Motivate People to Gamble online
Convenience
- With advancements in technology and devices, people in the United States get things done using their smart devices in the comfort of their homes. Leaving the house to visit a casino, usually in a crowded area in urban centers, can be off-putting. The United States online casinos can be accessed from anywhere as long as there is the internet.
- Customers go to gamble online because it is convenient; no ATM transactions required, and no dealers or large crowds. Online gambling accounts are concurrent, which means that a player can switch between devices.
More Options
- As regulations in various jurisdictions in the United States continue to be lifted to allow online gambling, more sites are providing real money casino games. The players can choose from several options.
- Online gambling also provides added bonuses, varying membership perks,and player incentives that may prompt consumers to utilize different sites.
- Online gambling casinos also offer cross-platform experiencesas a majority of the sites also have mobile apps for them. Online casinos give the users a choice of exploring different games, giving more offerings than available at an actual brick and mortar casino.
Flexible Betting Options
- Land-based casinos have a strict minimum that prompts customers to risk more money each Online gambling casinos have the same minimum requirements, but also provide low betting criteria.
- New players prefer gambling online as it allows for a learning experience. Hence, players don’t lose a large amount of money each hand. Players can experiment online without worrying about substantial financial consequences.
Insights into Online Gambling Companies Marketing
AD Avenues
- Online internet casino/gambling companies use search engines and portals such as Yahoo, Google, Ask Jeeves, and AltaVista to advertise and market their services. Advertising through search engines and portals is one factor contributing to the rapid growth of online gambling businesses.
- Online gambling sites in the United States also place advertisements on televisions, radio, and printpublications to market to the United States’ target population.
Advertising and Affiliate Programs
- Some online gambling businesses offer affiliate programs as a way of marketing. A marketing website can appear to be offering its casino gambling services, but in reality, it’s an ongoing operation conductedby the parent card room/casino.
- The affiliate program advertising and marketing promotion has contributed significantly to the growth of the online gambling business over the last ten years.
- To reach the United States target market, online casinos apply technical search engine optimization (SEO) and creates brand and content awareness.
Insights into Casino Companies Marketing
AD Avenues
- The brick and mortar traditional casino marketingstrategies involved a personal approach. The marketing/advertising was done through local newspapers, hotel brochures, local fliers, street-level engagement, casino websites, and direct mail marketing.
- However, the marketing strategies are evolve with the casino’s mode of operations, and PPC, social marketing,and SEO have become core in developing and attracting customer bases.
- Casinos are now using digital marketingto promote and advertise their businesses.
Messaging
- To break through the United States market, casinos use marketing messaging that promises consumers pure fun and entertainment. Casino advertisements focus on selling nightlife, glitz, lights,and sex life.
- A majority of Casinos use the phrase “what happens in Vegas stays in Vegas” in their advertisement campaigns.
- In the advertisements, the casinos point out the events happening in the casino, the shows, music, and keep customers updated on the events.