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TABLE 1
Las Vegas Strip :
Departmental Percentages of Total Revenue
Since 1984 , gaming revenues on the Las Vegas Strip as a segment compared to other property revenues have dropped from nearly 59 % to 35 %. Meanwhile , revenues from other areas , such as entertainment , have increased in share from about 6 % to over 13 %, with room revenues seeing the greatest jump , from less than 12 % in 1984 to over 23 % today ( UNLV , 2019 and Nevada Gaming Control Board , 2019 ). All the while , the average age of visitors to Las Vegas has decreased over time ( LVCVA , 2019 ). If we look at the data , it tells us something important : a changing visitor demographic coupled with a flat evolution of the venue ( save for a few bigger , brighter , and louder machines ) all with a decreasing number of retirees - the casino floor and slot machine ’ s most significant demographic share - operators are going to need to adapt in order to boost casino floor revenues .
TABLE 21 Share of Revenues
Where 70 % We Are
60 %
GAMING
The casino industry , especially the Las Vegas Strip , though more broadly the entire land-based
NON - GAMING retail 50 % gambling world is on the precipice of another dramatic change . Casino floors are evolving rapidly 40 % , square footage is becoming less densely occupied , and key player demographics are shifting 30 %- dramatically . What this means for the average casino operator is that a significant transition is on the 1990rise , and 1995 this one likely 2000 means 2005 a new set 2010 of permanent 2015, crucial pivots that have a lasting impact on both the floor , the operator , and the player experience as a whole . What is even more interesting , is that we see younger visitors are becoming increasingly more affluent over are a time few . key Market areas research that need for to the be Las understood Vegas Convention and analyzed and Visitors in order Authority to develop shows a more that
There robust the percentage image of of what visitors the future with an holds annual for casinos household and players income . over $ 100,000 has increased from
15 % in 2014 , to 34 % in 2018 .
First , we need to have a look at the current state of the casino industry . While the market is notorious for its steadily evolving landscape , the challenges facing the gambling industry are unprecedented , and they are as impactful as they have been swift . Second , with the changes to the casino
HOUSEHOLD INCOME
2014 2015 2016 2017 2017
and Less gambling than $ 20,000 markets come modifications 1 to the 2 player psychographics 2 that 1 also need to be 4 taken into $ 20,000 account to $ 39,999 . The traditional model 6 of “ know 4 your player ” must 9 now take 4 into consideration 6 the impact $ 40,000 to of $ a 59,999 new landscape and 26a new generation 19 of potential 21 players , one 15that views the 12casino floor $ 60,000 and to $ gambling 79,999 in general 27 much differently 23 . Third , with 24 the changing psychographics 23 19 of players $ 80,000 , operators $ 99,999 need to create stronger 17 definitions 17 of some of 13 their current players 16 compared 18 to the desired new and future player .
$ 100,000 or more |
15 |
26 |
15 |
29 |
34 |
Not Sure / No Answer |
7 |
10 |
16 |
12 |
9 |
Coupled with this , we need to look at the behaviors of these players when it comes to the casino floor ’ s most valuable assets : slots . While slot machines have traditionally been the major revenue generators One has wonder and ideal , how revenue-per-square-foot , if players arriving units with , more the new money breed to spend of player , is the behaves share differently of gaming , and revenue survival staying and flat growth , while depend shares on of non-gaming understanding amenities that behavior are on the intimately rise ? The . Lastly crux , of once it is all that of these there is points simply have more been to do fleshed , and more out , we engaging need to offers look at available the opportunities to prospective that players exist in , new particularly games , specifically those that can , those be categorized games which as can underserved help usher . in a new generation of player .
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