The Future of the Gaming Industry: Challenges the Next Decade Holds for Casinos

A man is playing an electronic casino game in a neon lit casino.

By Mark Legg

With the 2010s decade in our rearview mirror, the gaming industry experienced considerable changes. This past decade the gaming industry experienced the cumulative effects of competition. To combat a more competitive environment, casinos have looked to technological advancements, more specifically data-mining capabilities and mobile gaming apps. In addition to greater investments in the non-traditional casino, amenities have shifted the way the industry attracts patrons. Given the rapid changes within the gaming industry, what challenges will this upcoming decade hold for the gaming industry?

This past decade we saw the continued effects of competition on the casino industry. Competition came from not only from market saturation of direct competition due to the rapid expansion of legalized casino gambling across most jurisdictions, but indirect competition from other forms of gambling and entertainment. Other substitute forms of gambling competing with casinos include: sports betting, online betting apps, lotteries, and fantasy sports. As more consumers have easier access to substitute forms of gambling, casino patrons will increasingly turn to the more convenient gambling options available.

While convenience or proximity has typically been a large decision driver for casino patrons (Richards, 1997), the expansion of gambling options readily available at patrons’ fingertips will bring even more focus on convenience in the upcoming decade. Furthermore, the younger generations (millennials and generation Z) value convenience greater than their older counterparts when choosing where to spend their dollars (Wood, 2013). As the younger generations increase their purchasing power and comprise a greater share of the overall gambling market, it will only exuberate the influence of convenience on casino operations in the upcoming decade.

Convenience will play a larger role in all casino markets. Even after the recent addition of the two newest casinos in Massachusetts, MGM Springfield and Encore Boston Harbor. The three Massachusetts casinos are 45 minutes to two hours’ drive apart from one another. This is assuming limited to no traffic, which is not always the case with Boston and Springfield freeways. While brick and motor casinos have expanded and become more accessible, they are not always around the corner. As more convenient gambling options become increasingly available and better in terms of playability, casinos will need to figure out how to adapt to limit the potential loss of patrons.

Casinos in the latter half of the most recent decade started to turn to mobile gaming apps to reach convenience driven patrons. A quick search of gaming apps on the Google Play Store revealed half of the casinos in the New England market (Foxwoods, Mohegan Sun, Encore and Hollywood Casino in Bangor) have a mobile gaming app. One can expect more casinos coming out with mobile gaming apps in the upcoming decade. As the number of gambling apps increases, consumers will have even more options, thus diluting the share of the overall gambling market for brick and motor casinos. Additionally, casinos who introduce apps will have an increasingly difficult time differentiating their new app from the countless others available. Lastly, when casinos introduce mobile gaming apps to appeal to convenience driven patrons, they run the risk of cannibalizing loyal patrons already in their own databases. Casinos who are able to figure out how to best incorporate mobile gaming apps that augment their current gaming platform will come out ahead in the next decade.

On top of casinos needing to figure out how to attract inconvenience based patrons, gambling revenues generated at casinos are more reliant on how well the economy is doing (Legg, Tang & Kim, 2019). To further add to matters, the gaming industry bounced back slower out of the previous recession (the Great Recession of 2008) than other hospitality sectors. The past decade 2010s was the first decade in the history of the United States that did not experience a recession. With the timing since the last recession growing, more economists are sounding the alarm by saying we are overdue for a market correction. Which they note will likely occur in the upcoming decade. Furthermore, some market-experts have gone further by stating we can potentially expect a decade long stagnation of economic growth after a long economic boom period. Depending on which expert one believes, either scenario does not bold well for the casino industry in the next decade as the conditions will bring new challenges to an industry already under increased pressure.

If the recession predictions hold true, casinos will need to do more with less fiscally and become smarter in leveraging their databases. The past decade saw casinos leveraging technological improvements to increase their data-mining and collection capabilities. Casinos now collect more information on their patrons than almost any other industry. However, not all casinos are fully leveraging their systems’ capabilities to improve operational and marketing efficiencies. As the industry has relied exclusively on costly promotions to draw and retain patron loyalty, the effects of competition can easily degrade the return on investment if casinos do not adequately leverage the information in their databases. Furthermore, in an age of growing individualism, casinos can no longer rely on one-size-fits-all promotions (Legg & Hancer, 2019), but need to base costly promotions on what the data captured on their patrons’ shows. Casinos who best incorporate their data-mining capabilities into their marketing platforms in the next decade will be more apt at succeeding in an increasingly challenging environment.

PDF Version Available Here

REFERENCES
Legg, M., Tang, C. H., & Kim, H. (2019). An economic sensitivity analysis of Las Vegas gaming revenues. Manuscript submitted for publication.
Legg, M. & Hancer, H. (2019). How patrons value casino promotional offers: A conjoint study. Tourism Economics, 1-18.
Richard, M. D. (1997). Determinants of casino repeat purchase intentions. Journal of Hospitality & Leisure Marketing,4(3), 25-39.
Wood, S. (2013). Generation Z as consumers: Trends and innovation.Institute for Emerging Issues: NC State University
Mark Legg, Ph.D. recently joined the faculty in the fall of 2019 at Boston University School of Hospitality Administration, bringing two decades of analytical industry experience. His educational background includes a mix of mathematics and hospitality management with a Ph.D. in Hospitality Administration from Oklahoma State University and Bachelors and Masters degrees in Mathematics from SUNY at Buffalo (UB). Mark has spent the past two decades building industry-leading analytical solutions within the hospitality industry while assisting organizations with wriggling out as much value out of their data as possible. His experiences include building out an industry-leading corporate analytics department for an international hospitality organization to directing database, direct marketing, and CRM departments for one of the world’s largest casino resorts.

 

Share this:

84 comments

  1. Pingback: Are the Casinos of Science Fiction Finally Here? - Glide Magazine
  2. Pingback: ‘We’ve got to get gaming out of our blood’: Pandemic shock pushes Wisconsin tribes to diversify economy | 97 Seven Country WGLR - The Tri-States Best Variety of Country - Lancaster, Dubuque, Galena, Platteville
  3. Pingback: ‘We’ve got to get gaming out of our blood’ - Buffalo’s Fire
  4. Pingback: ‘We’ve received to get gaming out of our blood’: Pandemic shock pushes Wisconsin tribes to diversify economic system – Special Wish 4 U
  5. Pingback: 'We've got to get gaming out of our blood': Pandemic shock pushes Wisconsin tribes to diversify economy - Wisconsin Public Radio - YouTube Money Makers
  6. Pingback: ‘We’ve got to get gaming out of our blood’ - Source New Mexico
  7. Pingback: 'We've got to get gaming out of our blood': Pandemic shock pushes Wisconsin tribes to diversify economy - madison365.com - YouTube Money Makers
  8. Pingback: Pandemic shock pushes Wisconsin tribes to diversify economy - TMJ4 News - YouTube Money Makers
  9. Pingback: 'We've got to get gaming out of our blood': Pandemic shock pushes Wisconsin tribes to diversify economy - kaukaunacommunitynews.com - YouTube Money Makers
  10. Pingback: Tribes Seek Future Beyond Casinos » Urban Milwaukee
  11. Pingback: “We’ve Got to Get Gaming Out of Our Blood” – Belt Magazine
  13. Pingback: ‘We’ve acquired to get gaming out of our blood’ – Isthmus – Special Wish 4 U
  15. Pingback: Pandemic shock pushes Wisconsin tribes to diversify economic system - Pc For Gaming

  17. Raih kemenangan terbesar abad ini di situs terbaik di indonesia texas77, Peroleh keuntungan berlimpah hanya dengan memainkan permainan slot online kegemaran anda di situs texas77, Jangan lewatkan sedikit kesempatan pun dengan ragu untuk mencoba menggapai kemenangan teratas di situs terpercaya texas77

    Reply
  18. Pingback: Parx Leads Casino Revenue Market Share in Pennsylvania Despite New Competitors - Snaptik
  19. Pingback: Strategies Used by Online Gaming Companies to Retain Indian Players

  20. Coloktoto merupakan Situs Togel Online terpercaya dalam menyajikan beragam permainan judi online berbasis android modal pasang taruhan 100 perak saja. Mudah sekali untuk memperoleh segudang keuntungan terbesar puluhan bahkan ratusan juta rupiah yang sudah tersedia secara lengkap dan resmi disini.

    Reply

  21. Taruhantoto merupakan bandar slot online terpercaya di indonesia yang menyediakan berbagai permainan judi online hanya dengan mendaftar kan 1 akun saja, dengan modal deposit 20ribu kalian sudah dapat bermain di semua permainan judi online taruhantoto dan untuk para pemain judi online yang sudah bergabung di taruhantoto juga berhak mendapatkan bonus pendatang baru dan bonus deposit yang di berikan oleh taruhantoto.

    Reply
  25. Pingback: Poker
  30. Pingback: A Historical Overview of Casino Games and Their Impact on the Online Gaming Industry

  32. Greetings to all participants! Today I would like to tell you how Sportsbook Software helped me in creating my own sports betting website. When I first started, I was so overwhelmed with information that I didn’t know where to start. However, when I discovered it, my problems disappeared. This site provides great software for running a betting site.

    Reply

  36. Hello
    Hope you will be fine and doing well today?
    Do you want to improve your business and sales through online marketing?
    We have thousands of sites where we can publish sponsored posts featuring your business.
    You are sure to find a website that’s best for you, as this list has different categories available, such as:
    Technology
    Digital Marketing
    Mobile apps & Software development
    Health/Beauty
    Fashion/Lifestyle
    Bitcoin
    casino
    crypto
    Sports
    Business
    Education
    Real Estate
    Personal Blogs
    Astrology
    and much more!
    Our websites are updated with information to help you choose, including website rankings (AHref, MozBar, Alexa Rank, SemRush).
    We also have content writing services. If you want to get these services then I will give you a discount. We have a special discount for bulk orders.
    If you are interested then, please let me know. Should I send you my good websites?
    Let me know if you have any questions?
    Need your trust and cooperate

    Warm Regards

    Reply

  53. Look no further than a YouTube watch party! Enjoy YouTube with your friends, or loved ones, no matter where you are. Use live chats, videos, and calls to talk and have fun together. It’s like having your own showtime parties, even if you’re far away!

    Reply

  54. Let’s party now with Amazon Prime Watch Party, you and your friends can watch Prime Video together. No matter how far apart you are, have a blast with synced videos, chatting together, and even making video calls while using your favorite streaming site.

    Reply

  55. ASIAGENTING | ASIAGENTING ALTERNATIVE LINK | ASIAGENTING LOGIN | ASIAGENTING REGISTER | ASIAGENTING APP | ASIAGENTING GACOR | ASIAGENTING WORKIT

    Welcome to the number 1 most trusted website in Indonesia which has a very official and very safe website. Asiagenting has been established since 2018, where Asiagenting is the most famous website to date. https://asiagenting-app.com/

    Reply

  56. Currently, the game Minecraft apk has surpassed other competitors and is at the top of the gaming industry, so what is so interesting about this game that millions of people are using it, please try it.

    Reply

  57. With so many books and articles coming up to give gateway to make-money-online field and confusing reader even more on the actual way of earning money, qq101

    Reply

  58. Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work! IELTS General Reading practice test

    Reply

  63. Thank you for the information
    This game is very exciting and also very easy to win, which is why it has so many fans
    Therefore, if you also like it, you can visit Waktogel

    Reply

  67. Go is a strategic board game played between two players who take turns placing black and white stones on a grid, with the objective of controlling the largest area of the board. https://gomagic.org/ requires deep strategic thinking and has been enjoyed by people around the world for centuries.

    Reply

  72. Don’t hesitate to try your luck in playing online slots on the wak lottery site. Who knows, this time is the time for you to win big and change your life. Always remember to play wisely and responsibly, and enjoy the excitement and excitement in every spin of the online slot machine. Happy playing and good luck! For further information, visit this website https://waktogel.livejournal.com/

    Reply

  73. ibomma Three are normally modest Ralph Lauren accessible available to be purchased every last time you wish to purchase .. best content and best website thanks for shairing

    Reply

  76. Facing such strong feelings of love, Michael and Sarah could no longer restrain themselves. They felt attached to each other physically and emotionally, and finally decided to take their relationship a step further. Their feelings of desire and desire started to take over, and without many words, they started having sex, for further information visit this website https:// tokozeks.wordpress.com/

    Reply

  81. Fabulous post. Are you a gamer who wants to configure mouse acceleration settings with Raw Accel? Well, Raw Accel is a versatile tool designed to provide users with granular control over mouse acceleration settings. However, If you want to get information on configuring mouse acceleration using raw accel, you can check out a blog post related to it.

    Reply

  82. Wonderful article! Do you want to know how to Stream Your Android Phone to a Smart TV? Well, there is no need to worry I have an article where you will get to know about how to do screen mirroring with the use of wi-fi technology Well, there is an app called scrcpy which is used for screen mirroring for more details info visit the mentioned article.

    Reply

  83. Thank you for summarizing the challenges facing the gaming industry in the upcoming decade. It’s insightful to see how competition, technological advancements, and economic factors will shape the future of casinos, emphasizing the importance of adaptability and data-driven strategies.

    Reply

Reply to StageBit

Cancel