Casino Enterprise Management

WMS Survey Reveals Major Shifts in Gambler Preferences

By Rob Bone

At WMS, we have made it our mission to lift the casino floor to exciting new levels of player entertainment. As our industry navigates through economic challenges and moves into the future with networked gaming, we take our cues from our most important constituents—the players.

Our industry stands at the threshold of opportunity, where emerging trends create exciting avenues for growth. Those who maximize these opportunities will be the operators who understand how to tap into vast new markets, while also encouraging current customers to keep returning.

We undertook the WMS Active Gambler Profile survey as the first annual effort to shed new light on the major forces shaping casino player behavior. Fielded during the summer/fall 2008, the WMS Active Gambler Profile survey is based on a nationally representative sample of more than 2,000 active American gamblers. This survey, conducted with premier research, marketing and public relations firm Ypartnership, provides an invaluable forecast, laying the foundation for WMS’ strategic planning.

Now, we are pleased to share summary findings with CEM readers in a series of columns on the main trends shaping the marketplace. Last month, we focused on the growing impact of Time Poverty. This month’s column shows how the powerful, evolving force of Demography sets the stage for dramatic shifts in gambler preferences and behavior.

Trend Watch 2:  Demography
The U.S. population is aging at an unprecedented rate. Every nine seconds, someone turns 50 in America. Demographic projections reveal by 2030, 20 percent of the population—72 million people—will be over the age of 65.

According to the WMS Active Gambler Profile survey, nearly two in five (40 percent) active gamblers are Baby Boomers, ages 44 to 62. More than one-quarter (28 percent) are Matures, over the age of 63.

The WMS Active Gambler Profile survey provides the following snapshot of active gamblers:

•    Nine out of ten (90 percent) are white, non-Hispanic
•    Three-quarters (70 percent) are married
•    Nearly half (42 percent) earn an annual income greater than $75,000 
•    Two out of five (41 percent) are not enrolled in the labor force (includes retirees, students and the unemployed)

When we look down the line to younger members of society, we find 75 million members of the next generations, Gen X (ages 30 to 43) and Gen Y (ages 21 to 29). Not surprisingly, these younger people have different lifestyles and leisure preferences than their elders. They are more adventurous and impulsive and less likely to show brand loyalty.

Diversity is another key demographic trend. Fifty percent of Americans will be classified as diverse by 2042. This population consists of African-Americans, Hispanics, Asian Americans and Native Americans. While half our population will be diverse in just 30 years, the WMS Active Gambler Profile survey reveals only 2 percent of active gamblers today are African-American, and 3 percent are Hispanic.
   
Implications
For continued growth, our industry clearly needs to attract a more diverse clientele through new gaming experiences. Another major trend—the aging population—is great news for our industry, given that Matures and Boomers are far more likely to be active gamblers than adults at the other end of the age continuum. Members of Generations X and Y represent one-third of the active gambler base now. Undoubtedly, they will bring new attitudes and preferences to gaming. As the generation that grew up on video games, the Internet and a heightened sense of pop culture, these younger players are likely to seek gaming experiences that include other forms of entertainment enhanced by interactive platforms and cutting-edge audio and visuals. 

By harnessing the implications of the WMS Active Gambler Profile survey, operators can keep Boomers and Matures engaged. At the same time, they can step boldly into the future with innovative products that appeal to the rapidly growing Generations X and Y, while also cultivating the remarkable potential of the diversity markets.

In the coming weeks, a summary version of the WMS Active Gambler Profile survey will be available online. Check next month’s column for details. WMS—Max Your EDGE.