Skip to main content
SpringerLink
Log in

Marketing to the next generation of casino patrons

  • Original Article
  • Published:
Journal of Marketing Analytics Aims and scope Submit manuscript

Abstract

The expansion of gambling across the United States has made the gaming industry more competitive while the demographics of the gaming industry have evolved. Younger patrons are visiting casinos less frequently than their older counterparts, thus increasing the pressure to market to guests effectively. In this study, we investigate the differences in marketing, gaming, and entertainment preferences under the lens of Generational Cohort Theory (GCT). A survey with a discrete choice design was used to measure each generation’s gaming behaviors and marketing preferences, while a hierarchical Bayes model was used to examine intergenerational differences. The results show that younger cohorts have an increased preference for social-based gambling activities and greater preference for non-gaming offers. Considerations are noted with recommendations for the industry to help cultivate customer loyalty amongst the younger generations, which may ensure firm viability for years to come.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

Notes

  1. Generation Z has recently been termed Zoomers (Dictionary.com 2021; Merriam-Webster 2021). This study uses the term Zoomers to reference the Generation Z cohort.

  2. Generation X comprises 61 million of the U.S. population.

  3. Millennials comprise 63 million of the U.S. population.

  4. Patrons receive y amounts in FP for every x amount they gamble.

  5. Amount wagered on slot machines.

  6. 4 FP, 4 F&B coupons, 4 hotel coupons, 2 A-level ticket offers, 2 B-level ticket offers.

References

  • Alberghetti, A., and P. Collins. 2015. A passion for gambling: A generation-specific conceptual analysis and review of gambling among older adults in Canada. Journal of Gambling Studies 31: 343–358.

    Article  Google Scholar 

  • Alkire, L., G. E. O'Connor, S. Myrden, and S. Köcher. 2020. Patient experience in the digital age: An investigation into the effect of generational cohorts. Journal of Retailing and Consumer Services 57

  • Allison, W. 2017. Security & surveillance: Running the RNG risk. https://ggbmagazine.com/article/security-surveillance-running-the-rng-risk/

  • American Gaming Association. AGA. (2018). State of the states: The AGA survey of casino entertainment. www.americangaming.org Accessed 12 June 2019.

  • Bijmolt, T., M. Dorotic, and P. Verhoef. 2010. Loyalty programs: Generalizations on their adoption, effectiveness and design. Foundation and Trends in Marketing 5 (4): 197–258.

    Article  Google Scholar 

  • Bokunewicz, J., and R. Pandit. 2016. Millennial entertainment preferences study final report – July 2016. Galloway, NJ: Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism.

  • Caplan, E. 2005. Brand loyalty. Dealerscope 20 (May): 60.

    Google Scholar 

  • Census. 2020. Age and sex tables. https://www.census.gov/topics/pop-ulation/age-and-sex/data/tables.html

  • Chaney, D., M. Touzani, and K.B. Silmane. 2017. Marketing to the (new) generations: Summary and perspectives. Journal of Strategic Marketing 25 (3): 179–189.

    Article  Google Scholar 

  • Debevec, K., C.D. Schewe, T.J. Madden, and W.D. Diamond. 2013. Are millennials splintering into a new generational cohort? Maybe! Journal of Consumer Behaviour 21: 20–31.

    Article  Google Scholar 

  • Dick, S.D. 2019. Generational similarities in work values of generations X, Y and Z. Journal of Human Resource Management 22: 10–27.

    Google Scholar 

  • Dictionary.com. 2021. Zoomer. https://www.dictionary.com/e/slang/zoomer/

  • Eisen-Hecht, J. I.,R. A. Kramer, and J. Huber. 2004. A hierarchical Bayes approach to modeling choice data: A study of wetland restoration programs. 2004 Annual Meeting of the American Agricultural Economics Association, Denver, CO, United States.

  • Freeman, L. 1996. Trendy sport-utility Fords across generation gap. Advertising Age 67(14).

  • Feldberg, S. 2016. In pursuit of a winning strategy: Getting millennials to gamble. www.travelweekly.com/Travel-News/Hotel-News/In-pursuit-of-a-winning-strategy-Getting-millennialsto-gamble/?cid=eltrdb

  • Hurdle-Bradford, R. 2012. Young players: The future is now. http://ggbmagazine.com/issue/vol-11-no-7-july-2012/article/young-playes-the-future-is-no

  • Jeon, S.M., and S.S. Hyun. 2013. Examining the influence of casino attributes on baby boomers’ satisfaction and loyalty in the casino industry. Current Issues in Tourism 16 (4): 343–368.

    Article  Google Scholar 

  • Johnson, G. 2016. The myth of the millennial. www.pechanga.net/conte-nt/genejohnson-myth-millennial

  • Jonck, P., F. Van der Walt, and N. C. Sobayeni. 2017. A generational perspective on work values in a South African sample. SA Journal of Industrial Psychology 43

  • Kim, J.H., and K.H. Kang. 2018. The effect of promotion on gaming revenue: A study of the U.S. casino industry. Tourism Management 65: 317–326.

    Article  Google Scholar 

  • Kruschke, J. K., and W. Vanpaemel. 2015. Bayesian estimation in hierarchical models. In J. R. Busemeyer, Z. Wang, J. T. Townsend, & and A. Eidels. (eds), The Oxford handbook of computational and mathematical psychology (pp. 279–299). Oxford, England: Oxford University Press.

  • Las Vegas Convention and Visitors Authority (LVCVA). 2018. Las Vegas visitor profile 2018. www.lvcva.com/includes/content/images/media/docs/2018-Las_Vegas_Visitor_Profile.pdf

  • Legg, M.P., and M. Hancer. 2020. How patrons value promotional offers: A conjoint study. Tourism Economics 26 (4): 640–657.

    Article  Google Scholar 

  • Li, X., X.R. Li, and S. Hudson. 2013. The application of generational theory to tourism consumer behavior: An American perspective. Tourism Management 37: 147–164.

    Article  Google Scholar 

  • Lissitsa, S., and O. Kol. 2016. Generation X vs. Generation Y: A decade of online shopping. Journal of Retailing and Consumer Services 31: 304–312.

    Article  Google Scholar 

  • Loroz, P.S., and J.G. Helgeson. 2013. Boomer and their babies: An exploratory study comparing psychological profiles and advertising appeal effectiveness across two generations. Journal of Marketing Theory and Practice 21 (3): 289–306.

    Article  Google Scholar 

  • Lovat, O. 2016. Elvis Who? Understanding, attracting and retaining the next generation of Las Vegas customers. UNLV Center for Gaming Research – Occasional Paper Series 35, 1–19.

  • Lucas, A.F., and J.T. Bowen. 2002. Measuring the effectiveness of casino promotions. International Journal of Hospitality Management 21 (2): 189–202.

    Article  Google Scholar 

  • Lucas, A.F., and P. Brewer. 2001. Managing the slot operations of a hotel casino in the Las Vegas locals’ market. Journal of Hospitality and Tourism Research 25 (3): 289–301.

    Article  Google Scholar 

  • Lucas, A.F., W.T. Dunn, and A.K. Singh. 2005. Estimating the short-term effect of free-play offers in a Las Vegas hotel casino. Journal of Travel and Tourism Marketing 18 (2): 53–68.

    Article  Google Scholar 

  • Lucas, A.F., and J. Nemati. 2020. Free-play impact by customer segment. International Journal of Hospitality Management 84: 1–9.

    Article  Google Scholar 

  • Lucas, A.F., and J. Santos. 2003. Measuring the effect of casino-operated restaurant volume on slot machine business volume: An exploratory study. Journal of Hospitality and Tourism Research 27 (1): 101–117.

    Article  Google Scholar 

  • Lucas, A.F., and K. Spilde. 2017. Estimating the effect of casino loyalty program offers on slot machine play. Cornell Hospitality Quarterly 58 (3): 263–271.

    Article  Google Scholar 

  • Machus, R. 2016, August. Changing the game: Evolving casino marketing strategies to include millennials. http://marketingblog.andersondd.com/blog/direct-mail-marketing/changing-game-evolving-casino-marketing-strategies-include-millennials

  • McGowan, R., and T. Brown. 2009. Revenue generation at casino resorts: The use of “comp”-based promotions. Gaming Law Review and Economics 13 (5): 363–385.

    Article  Google Scholar 

  • Merriam-Webster. 2021. Words we’re watching: ‘Zoomer’. https://www.merriam-webster.com/words-at-play/words-were-watching-zoomer-gen-z

  • Nathan, B. 2017, March. Move over baby boomers: Casinos are now catering more and more to millennials. https://www.playnj.com/news/casinos-adjust-product-amenity-mix-for-millennials/5033

  • O’Brien, L., and C. Jones. 1995. Do rewards really create loyalty. Harvard Business Review 73: 75–82.

    Google Scholar 

  • Ordun, G. 2015. Millennial (Gen Y) consumer behavior, their shopping preferences and perceptual maps associated with brand loyalty. Canadian Social Science 11 (4): 40–55.

    Google Scholar 

  • Ozkan, M., and B. Solmaz. 2017. Generation Z – the global market’s new consumers – and their consumption habits: Generation Z consumption scale. European Journal of Multidisciplinary Studies 2 (5): 150–157.

    Article  Google Scholar 

  • Parment, A. 2013. Generation Y vs. baby boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of Retailing and Consumer Services 20: 189–199.

    Article  Google Scholar 

  • Pendergast, D. 2009. Generational theory and home economics: Future proofing the profession. Family and Consumer Sciences Research Journal 37 (4): 504–522.

    Article  Google Scholar 

  • Phillips, W., and S.C. Jang. 2012. Exploring seniors’ casino gaming intention. Journal of Hospitality & Tourism Research 36 (3): 312–334.

    Article  Google Scholar 

  • Priporas, C.V., N. Stylos, and A.K. Fotiadis. 2017. Generation Z consumers’ expectations of interactions in smart retailing: A future agenda. Computers in Human Behavior 77: 374–381.

    Article  Google Scholar 

  • Rahulan, M., O. Troynikov, C. Watson, M. Janta, and V. Senner. 2015. Consumer behavior of generational cohorts for compression sportswear. Journal of Fashion Marketing and Management. 19 (1): 87–104.

    Article  Google Scholar 

  • Reisenwitz, T.H., and R. Iyer. 2009. Differences in generation X and generation Y: Implications for the organization and marketers. Marketing Management Journal 19 (2): 91–103.

    Google Scholar 

  • Rentz, J.O., and F.D. Reynolds. 1991. Forecasting the effects of an aging population on product consumption: An age-period-cohort framework. Journal of Marketing Research 28: 355–360.

    Article  Google Scholar 

  • Repetti, T. 2013. The finance and marketing dilemma: Do promotional allowances actually increase revenue and profits for Atlantic City casinos? UNLV Gaming Research and Review Journal 17 (1): 1–12.

    Google Scholar 

  • Schewe, C.D., and S.M. Noble. 2000. Market segmentation by cohorts: The value and validity of cohorts in America and abroad. Journal of Marketing Management 16 (3): 129–142.

    Article  Google Scholar 

  • Stark, E., and S. Farner. 2015, Winter. Intergenerational warfare in the U.S. workplace, or nothing more than growing pains? Advanced Management Journal 80: 4–11.

    Google Scholar 

  • Suh, E. 2011. Examining the indirect impact of showroom entertainment on hourly slot gaming volume: The case of a Las Vegas hotel-casino. International Journal of Hospitality Management 30 (3): 522–529.

    Article  Google Scholar 

  • Suh, E.J. 2012. Estimating the impact of free-play coupon value on players’ slot gaming volumes. Cornell Hospitality Quarterly 53 (2): 134–143.

    Article  Google Scholar 

  • Suh, E., M. Alhery, B. Abarbanel, and A. McKenna. 2017. Examining millennials’ online gambling behavior: A comparison of generational differences. Journal of Hospitality and Tourism Technology 8 (3): 314–336.

    Article  Google Scholar 

  • Suh, E., and A.F. Lucas. 2011. Estimating the impact of showroom entertainment on the gaming volumes of Las Vegas hotel-casinos. International Journal of Hospitality Management 30 (1): 103–111.

    Article  Google Scholar 

  • Suh, E., and S. Tanford. 2012. The impact of paid versus complimentary showroom entertainment on gaming volumes. Journal of Hospitality Marketing & Management 21: 374–394.

    Article  Google Scholar 

  • Suh, E.J., S. Tanford, and A. Singh. 2012. The indirect gaming contributions of cash and comped casino dining: Does providing complimentary meals pay off at the slots? International Journal of Hospitality Management 31 (4): 1303–1310.

    Article  Google Scholar 

  • Tang, N., Y. Wang, and K. Zhang. 2017. Value of Chinese generation cohorts: Do they matter in the workplace? Organizational Behavior and Human Decision Processes 143: 8–22.

    Article  Google Scholar 

  • Williams, G. 2005. Using Multi-Generational marketing to target donors. Nonprofit World 23 (5): 8–13.

    Google Scholar 

  • Williams, K.C., and R.A. Page. 2011. Marketing to the generations. Journal of Behavioral Studies in Business 3 (3): 1–17.

    Google Scholar 

  • Zakaria I., B. Rahman, and A. Othman. 2014. The relationship between loyalty program, customer satisfaction and customer loyalty in retail industry: A case study. Procedia – Social and Behavioral Sciences 129: 23–30.

Download references

Author information

Authors and Affiliations

  1. School of Hospitality Administration, Boston University, 928 Commonwealth Avenue, Boston, MA, 02215, USA

    Mark Legg & Apostolos Ampountolas

  2. Alfred Lerner College of Business & Economics, University of Delaware, 14 W. Main Street, Raub Hall, Newark, DE, 19716, USA

    Timothy Webb

Authors
  1. Mark Legg
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Timothy Webb
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Apostolos Ampountolas
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mark Legg.

Ethics declarations

Conflict of interest

The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Legg, M., Webb, T. & Ampountolas, A. Marketing to the next generation of casino patrons. J Market Anal 10, 89–101 (2022). https://doi.org/10.1057/s41270-021-00131-w

Download citation

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41270-021-00131-w

Keywords

Search

Navigation