Casino Enterprise Management

The Culture of Innovation at WMS is based in part on our understanding that the development of great new games, products and technologies aimed at driving measurable benefits for the casino and the industry must be informed by the voice of the player. Aligning development strategies with contemporary player trends, such as their shifting habits, preferences, values and brand interaction methods, is integral to the creation of innovative products that provide new entertainment value and drive improved performance and value for casino operators.

To capture the mindset of today’s active gambler, we have compiled the 2011 WMS Active Gambler Profile™, the third edition of our widely recognized, in-depth report, and are pleased to share with CEM readers a summary of its details. Over the next several months, we’ll share exclusively on these pages important findings that we believe uncover contemporary insights and advance the industry’s collective knowledge and expertise of the active gambler’s emerging lifestyles and preferences. Building on the insights garnered in the first two Active Gambler Profile reports, new data this year provides readers with an in-depth analysis of the dynamic forces influencing casino patrons and the broader gaming industry.

Data for the 2011 WMS Active Gambler Profile was collected over the course of several months in late 2010 from a representative sample of just over 3,800 active adult gamblers, approximately 10 percent more than the prior year. For the first time, the 2011 WMS Active Gambler Profile includes a representative sample of active gamblers in both Canada and Mexico. In addition to its expanded global scale, this year’s study further explores issues impacting active gamblers by incorporating qualitative focus group research that helps inform the quantitative survey.

The new study not only confirms key trends uncovered in the previous versions, but in many cases provides insights that demonstrate the growing influence of these trends on the habits and preferences of active gamblers. As we learned last year, there are five converging forces that shape and will continue to shape the market profile of today’s active gamblers in North America: 1) a growing sense of financial pressure caused by the current economic environment; 2) the dramatic shift of emerging technology on our everyday lives; 3) the corresponding growth of online gaming and gambling; 4) the transformation of media and entertainment consumption habits, in particular, the increasing adoption rates for social media; and 5) shifting social values and lifestyles. Understanding these trends has led to great progress in ways operators connect and interact with active gamblers both in and out of their casino.

At WMS, we are fully invested in helping casino operators think proactively. As such, in this first article, we review key trends that define the active gambler of tomorrow, as in order to think like your players, it is vital to first understand players’ interests today and what might influence changes in those interests in the future. Knowing these key factors is a powerful tool that allows you to remain ahead of the curve so that you maintain your competitive advantage.

Who are the active gamblers of today and what can we learn from their view of the world? Nearly 59 percent of the active U.S. gaming population (players who visited a casino at least once in the last 12 months) is defined as either a Frequent (31 percent of the gaming population, with an annual gaming value of $500-$2,500) or Avid (28 percent of the gaming population, with an annual gaming value of $2,501 or more) gambler, with the balance being defined as Casual gamblers with an annual gaming value of less than $500.

Among the many words that define these active gamblers, three continue to rise in prominence: Unique, Connected and Informed. While these characteristics are typically used to describe the two youngest demographic groups—Millennials (ages 18-30) and Xers (31-44)—it is important to understand that they also define, to different degrees, the two largest groups of active gamblers: Matures (64-plus) and Boomers (45-63).

In thinking about how to best address active gamblers’ current needs and tomorrow’s demands, casino operators must continue to adapt quickly if they are to remain integral to the lives of the younger demographic and maintain their market share. As detailed in this year’s report, active gamblers: 1) increasingly expect relevant and multidimensional real-time technologies; 2) demand more choice in nearly every aspect of the casino experience (including games offered, food and beverage options, gaming environment, atmospherics, services and amenities); and 3) value having their desires integrated into the innovation process. These trends are particularly evident in the active gamblers of the future, Millennials and Xers.

As a whole, comfort with and usage of technology continues to increase. U.S. Frequents are more likely to own a smartphone this year than one year ago and the number of apps they have downloaded increased 70 percent versus one year ago. U.S. Avids tend to believe the computer is an essential part of their household and 55 percent of them have a personal page or profile posted on Facebook, up from 47 percent one year ago.

Trends for Millennials clearly demonstrate that technology is more prevalent as a medium for entertainment than it is for older generations. While use of online/Internet-based options for sending or receiving e-mails and IMs are fairly consistent across all four groups (75 percent-80 percent), the use of the Internet for entertainment consumption, including music, movies and television program downloads and playing video games, becomes significantly more pronounced for the two youngest groups. For example, 49 percent, 44 percent and 44 percent of Millennials utilize the Internet to download or consume music, videos or photos, respectively, compared to 9 percent, 13 percent and 21 percent of Matures, respectively. Also, 32 percent of Millennials will frequently listen to the radio online, compared with 14 percent of Matures, while 31 percent of Millennials participate in online discussion forums/chats compared with 6 percent of Matures. Xers (the second youngest demographic) are statistically more similar to Millennials in their behavior across all these activities, while Boomers (the second oldest demographic) are statistically more similar to Matures in their behavior (though data clearly indicates Matures and Boomers are steadily increasing their acceptance of technology as a forum for entertainment delivery).

The differences in how the demographic groups stay connected and informed extend to mobility. 78 percent of Millennials and 66 percent of Xers indicate they use their cell phone for entertainment compared to 23 percent of Matures and 40 percent of Boomers. Furthermore, the disparity between the younger and older demographic groups in ownership of gaming/entertainment consoles is even more pronounced.

There is no doubt that the transition from traditional to social media is a trend that requires greater exploration to identify the best ways to address the needs of consumers. To that end, in addition to providing insights into active gamblers’ visitation of social media websites, this year’s report also explores the reasons active gamblers have chosen to use (or not use) social media and the influence of social media on purchasing decisions.

Trends in social media provide interesting insights into the ways players are influenced today and will be influenced in the future. While the reasons for using social media (staying in touch, passing time, uploading content, etc.) are relatively evenly reported among all U.S. player types (Casuals, Frequents and Avids), the study exhibits the stark differences in the influence of social media by demographic group. 30 percent of U.S. Millennials report that social media is influential on their product/purchasing decisions compared to just 4 percent of U.S. Matures. Not surprisingly, Millennials (30 percent) and Xers (26 percent) with a personal page or profile posted on a social media site are more likely than their older counterparts (10 percent of Matures and 15 percent of Boomers) to have responded to an advertisement (e.g., banners, pop-up promotions) on a social media site.

Being forewarned is to be forearmed, and the differences noted above and discussed more deeply in the report clearly show that the trends in technology, media and entertainment consumption and lifestyle choices that most impact tomorrow’s gambler are critical considerations. Millennials are much more adventurous and tech-savvy but less brand loyal than older counterparts. For them (and Xers), utilizing technology as an engagement tool is not optional; it is required.

At WMS, we are working to help casino operators meet the needs of today’s active gamblers and are supporting their efforts to understand and gain the trust of the next generation of players as they are easily distracted, focused more on the here and now and significantly more likely to be influenced by networks of friends, rather than casino marketing communications.

To do this, we constantly challenge our normal thinking about how we sell, market and support casino operators. We know that the most successful, enduring casino brands will be those that best meet the needs of and attract the “new player.” Many of our recent game and platform introductions, including our families of Portal applications, Bluebird xD™ utilizing the BOSE® surround sound Sensory Immersion chair, the Adaptive Gaming® adventure platform and casino web services offering, including Player’s Life™ services, clearly demonstrate our desire to leverage the learning that will have the greatest influence on the active gambler of today and tomorrow.

For more insights on the 2011 WMS Active Gambler Profile, visit our dedicated website at www.wms.com/cemagp and return next month as I will continue to explore the active gambler. We’re staying in touch and listening to the voice of the player because helping you to do the same is our most critical mission. Are you prepared?

Product and service names mentioned in this article are trademarks of WMS, except for the following: BOSE® is a registered trademark of Bose Corp.