Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- Overall industry revenues expected to increase each year through 2012
- Sales in large markets decline as smaller markets and tribes take share
- Commercial segment dominates industry but growth is decelerating
- Tribal segment growing rapidly
- Racetrack casino segment relatively small but poised for continued strong
growth
- Growth of card room segment declines along with popularity of poker
- Sales down in Atlantic City, flat in Vegas but growing quickly in Gulf
Coast
- Rise in proportion of 55+, more affluent consumers and cheap flights drive
growth in commercial segment
- Harrah' s and MGM continue to dominate industry
- Casinos have high appeal to affluents
- Higher-income, young adults report going more often last year than before
- Casino gaming varies by gender, dining and shows most popular non-gaming
activities
- Casino-goers see gambling in positive light; although a third agree
gambling is addictive
- Financial concerns and location discourage many from visiting
- Asians more likely to visit casinos
- Cluster analysis identifies highest-value segment of casino-goers
- Market Size and Forecast
- Key points
- The industry grew in 2007 but growth is decelerating
- Figure 3: U.S. casino sales, at current prices, 2002-12
- Figure 4: U.S. casino sales, at inflation-adjusted prices, 2002-12
- Competitive Context
- Key points
- Atlantic City and Las Vegas struggle with economic downturn--as well as
competitors from other markets
- Atlantic City
- Las Vegas
- Convenience drives growth of tribal and racetrack segment
- Segment Performance
- Key points
- New locations--and convenience--fueling growth of the tribal segment
- Figure 5: Number of U.S. locations, by industry segment, 2006 and 2007
- Tribal casinos on track to surpass commercial operations
- Figure 6: U.S. casino revenue, segmented by facility type, 2006 and 2008
- Segment Performance--Commercial Casinos
- Key points
- Commercial casinos dominate the industry but growth is decelerating
- Figure 7: U.S. commercial casino sales, at current prices, 2002-12
- Figure 8: U.S. commercial casino sales, at inflation-adjusted prices,
2002-12
- Segment Performance--Tribal Casinos
- Key points
- Tribal casinos driving industry growth
- Figure 9: U.S. tribal casino sales, at current prices, 2002-12
- Figure 10: U.S. tribal casino sales, at inflation-adjusted prices,
2002-12
- Segment Performance--Racetrack Casinos (Racinos)
- Key points
- Sales at racetrack casinos growing rapidly
- Figure 11: U.S. racetrack casino sales, at current prices, 2002-12
- Figure 12: U.S. racetrack casino sales, at inflation-adjusted prices,
2002-12
- Segment Performance--Card Rooms
- Key points
- Card room sales slow as interest in poker declines
- Figure 13: U.S. card room sales, at current prices, 2002-12
- Figure 14: U.S. card room sales, at inflation-adjusted prices, 2002-12
- Online Gambling
- Internet gambling likely to remain (mostly) illegal for the near term
- About one in five internet users have visited an online gambling site
- Figure 15: Incidence of online casino gambling, and games played,
August-September 2008
- Geographic Distribution
- Key points
- Geographic locations
- Figure 16: States that participate in casino gambling, December 2007
- Mississippi and Iowa show strong growth
- Figure 17: Consumer spending on commercial casino gaming, by state, 2006
and 2007
- 2007 was the first year gross revenues exceeded $1 billion in seven markets
- Figure 18: Top 20 U.S. casino markets, 2006 and 2007
- Las Vegas
- Atlantic City
- Chicagoland
- Gulf Coast and Mississippi River
- Market Drivers
- Key points
- Increase in over-55 segment likely to drive future sales
- Figure 19: Population aged 21 or older, 2003-13
- Rise in proportion of households with incomes more than $100K fuels growth
- Figure 20: Median household income, 2005 and 2007
- Flights to Vegas on the decline but prices remain low
- Figure 21: U.S. national airfare averages, Q2 2006-Q1 2008
- Figure 22: U.S. lowest average airfares in U.S., by destination, Q1 2008
- Slightly higher consumer confidence level among gamblers could help shield
industry from effects of economic downturn
- Figure 23: U.S. average level of consumer confidence, gambler vs.
non-gambler, February 2007-March 2008
- Figure 24: Consumer Sentiment Index, March 2007-March 2008
- Leading Companies
- Key points
- Caesar' s Entertainment and MGM Mirage continue to dominate the commercial
segment
- Figure 25: Net revenues among top commercial casino operators in the
U.S., 2005 and 2007
- Harrah' s Entertainment Inc. and Caesar' s Entertainment Corp.
- MGM Mirage
- Boyd Gaming Corp.
- Penn National Gaming, Inc.
- Brand Qualities
- Luxury and non-gaming activities are critical as casinos seek to broaden
their appeal and attract new customers
- Harrah' s pitches experience packages, many of which do not involve gaming
- Luxurious pampering
- Innovation and Innovators
- Bringing in the tourists with promos: The case of Allegiant Airlines
- Automated games
- RFID technology
- Advertising and Promotion
- Key points
- Overall ad expenditures rose among top brands in 2007
- Figure 26: Media expenditures of leading casino hotel brands, 2006 and
2007
- Loyalty cards and comps key to in-house marketing efforts
- Themes in television advertisements
- The gambling pitch
- Figure 27: Mustachioed man talk poker ad, 2008
- Figure 28: People win casino games: you' ll always have the time of your
life ad, 2008
- Value for money
- Figure 29: Hottest Slots and Vegas-style jackpots ad, 2008
- Figure 30: Turn your points into free slot play ad, 2008
- Luxury accommodations and famous acts
- Figure 31: All that' s missing is you/Pure nightclub, 2008
- Casinos in Gambling Context
- Key points
- Young adults over-index on video card machines while lottery has high
appeal to Baby Boomers
- Figure 32: Annual frequency of casino visiting, lottery and video
machine playing, by age, August-September 2008
- Casino visitors more likely to play the lottery
- Figure 33: Likelihood of buying state lottery tickets, by casino
visitors and non-visitors, February 2007-March 2008
- Casino Visits
- Key points
- The affluent are more likely to visit; gamblers from lower-income
households visit more often
- Figure 34: Incidence and frequency of casino visits, by type/location,
by household income, February 2007-March 2008
- Tribal casinos have appeal to the over-55 segment
- Figure 35: Incidence and frequency of casino visits, by type/location,
by age, February 2007-March 2008
- Casino Visits this Year, Compared to Last
- Key points
- Target the affluent for loyalty programs
- Figure 36: Frequency of casino visits compared to a year ago, by HH
income, August-September 2008
- Young visit casinos more than they did in the past
- Figure 37: Frequency of casino visits compared to a year ago, by age,
August-September 2008
- Males more likely to have visited more often this year
- Figure 38: Frequency of casino visits compared to a year ago, by gender,
August-September 2008
- Activities at the Casino
- Key points
- Slots machines, blackjack and video poker are hot games
- Figure 39: Games usually played at the casino, by gender,
August-September 2008
- 25-34s are a key demographic: target them with online classes
- Figure 40: Games usually played at the casino, by age, August-September
2008
- Affluents tend to engage in more activities
- Figure 41: Other activities participate in at the casino, by household
income, August-September 2008
- Young adults have a greater interest in nightclubs, sightseeing and
shopping
- Figure 42: Other activities participate in at the casino, by age,
August-September 2008
- Attitudes towards Gambling among Casino Visitors
- Key points
- Perceptions of gambling similar across income groups
- Figure 43: Attitudes towards gambling among casino visitors, by HH
income, August-September 2008
- Men, younger respondents relate gambling with lifestyle
- Figure 44: Attitudes towards gambling among casino visitors, by age,
August-September 2008
- Attitudes towards Gambling among non-Casino Visitors
- Key points
- Concerns about wasting money on gambling discourage potential visitors
- Figure 45: Reasons for not visiting a casino, by household income,
August-September 2008
- Teach young adults about the games to build confidence
- Figure 46: Reasons for not visiting a casino, by age, August-September
2008
- Race and Ethnicity
- Key points
- Asians are a lucrative segment for casinos
- Figure 47: Incidence and frequency of casino visit, by type/location, by
race/Hispanic origin, February 2007-March 2008
- Blacks are heavy lottery players while Asians are much less likely to play
- Figure 48: Annual frequency of casino, lottery and video machine, by
race/Hispanic origin, August-September 2008
- Cost and convenience most commonly cited reasons for not going to a casino
within all race/ethnicity groups
- Figure 49: Reasons for not visiting a casino, by race/Hispanic origin,
August-September 2008
- Gambling has higher appeal to acculturated Hispanics
- Figure 50: Incidence and frequency of casino visits, by type/location,
by language preference, February 2007-March 2008
- Simmons Cohort Analysis
- Affluents and young newlyweds more likely to visit casinos
- Figure 64: Incidence and frequency of casino visits, by type/location,
by select cohorts, February 2007-March 2008
- Appendix: Other Useful Consumer Tables--A Gender Comparison
- Figure 65: Incidence and frequency of casino visits, by type/location,
by gender, February 2007-March 2008
- Figure 66: Other activities participate in at the casino, by gender,
August-September 2008
- Figure 67: Attitudes towards gambling among casino visitors, by gender,
August-September 2008
- Figure 68: Reasons for not visiting a casino, by gender,
August-September 2008
- Appendix: Trade Associations
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