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Freedonia Market Research Blog To Woo Millennials, Casinos Take a Chance on Arcade-Style Games

To Woo Millennials, Casinos Take a Chance on Arcade-Style Games

by Sarah Schmidt

January 9, 2017

Would you bet on zombies?

If you are a millennial, some casino operators are gambling that you will. The problem for these establishments is that millennials tend to prefer games of skill over the games of chance that currently dominate most casino floors, largely in the form of slot machines.

The need to attract this age group was highlighted by a recent report. According to the Las Vegas Convention and Visitors Authority, millennials composed over one-quarter of visitors to Las Vegas in 2015, but only 63% of this age group gambled during their stay versus 78% of 51-to-69-year-olds and 87% of 70-to-90-year-olds. In addition, the time spent gambling was significantly lower than that among older adults.

With the help of gaming technology providers, casinos are catering to these gambling preferences with arcade-style games that give players greater influence over the outcome. This trend has provided an opportunity for newer technology providers such as Gamblit Gaming and Gameco to expand their share of the gaming products market. For example, Gamblit partnered with video game publisher PikPok to “gamblify” the latter’s games (eg, racing game Breakneck and zombie adventure Into the Dead) for use in casinos by 2017.

Commercial adoption of these games is in the cards. In 2016, Gamblit reached a multi-year agreement to install skill-based games at casinos operated by Caesars Entertainment Corporation. After an initial field trial, Caesars expects to deploy 125 of Gamblit’s systems at various casino properties and to add more than 100 at other locations beginning in early 2017. The casino operator also plans to install 21 “video game gambling machines” developed by GameCo.

To learn more about gambling trends, read Gambling: United States, a report recently published by the Freedonia Focus Reports division of The Freedonia Group. The report provides historical data on US personal consumption expenditures for casino, lottery, and pari-mutuel gambling in nominal and real (inflation-adjusted) terms, along with forecasts in dollars to 2020. Also included are historical data and forecasts for casino hotels, standalone casinos, racetracks, and other gambling establishments. The report discusses market drivers and constraints, and provides profiles of leading companies competing in the US industry.

While you’re there, check out related reports such as Demographics: United States and Recreation: United States.

About the Author

Erica Keenan is a Market Research Analyst with Freedonia Focus Reports. She holds degrees and certificates in biomedical science and data science, and her experience as an analyst spans multiple industries. Areas of research include agriculture, consumer products, and food. 

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