The reality is that this Trading Spaces method , in its current form shown here , leads to significant cannibalization . The truth is that these new machines are not attracting new players , but rather spreading the WPUPD thinner among existing players . Without modifying the offer for players , attracting a new , different , and younger gambler it is not likely to achieve the intended result , as shown in the graphic below .
TABLE 43 COININ BY AGE
$ 250.000.000
$ 200.000.000
$ 150.000.000
$ 100.000.000
$ 50.000.000
GameCo Other Skill All Slots All Tables ETGs
GameCo Other Skill Average Slot Median Slot
UNDERSERVED
21-29 30-39 40-49 50-59
TABLE 54 COININ BY AGE
AGE
COININ SPENDING BY AGE
Ages 21-49 |
Ages 50 + |
81 % |
19 % |
23 % |
67 % |
21 % |
79 % |
32 % |
68 % |
49 % |
51 % |
COININ SPENDING INDEX
Ages 21-29 169 75 100 108
60-69 70-79 80-89 90 +
With all this in mind , what are the options available to operators that can both prevent cannibalization and encourage the desired player outlined in the previous section to begin playing on highyield machines ? The answer lies partially in introducing new genres of gaming technology , often referred to as skill-based games .
Skill-based games have been a hot topic of discussion for some time , but their adoption has not yet taken off at scale . It ’ s a strange phenomenon , as data shows that there is a tremendous upside . That
Where
We said
Are
, adoption in regulated markets tends to have a longer cycle , and while traditional The slots casino have been industry around , especially for a century the Las , skill-based Vegas Strip games , though are more in their broadly infancy the - only entire having land-based existed retail for about gambling four years world . At is the on same the precipice time , industry of another leaders dramatic tout what change skill-based . Casino gaming floors has are evolving to offer : rapidly , square footage is becoming less densely occupied , and key player demographics are shifting “ I ’ ve - dramatically rarely , if ever . What , been this to means a casino for the that average needed casino every operator gaming is that seat a significant or slot that transition it had is on on the the floor rise ,. and And this yet one , most likely properties means a new will set benchmark of permanent a skill-based , crucial pivots game that against have a lasting a slot
impact that no on one both will the miss floor , as , the opposed operator to , and thinking the player about experience the new as line a whole of business . [ skill-based games ] could create . All of this as operators are trying to solve for how to become a There primary are entertainment a few key areas destination that need to for be understood the clearly and underserved analyzed in markets order to that develop exist a in more future generations robust image of what ; many the future [ of these holds underserved for casinos and players players ] are . in our facilities today and we
First aren , ’ we t [ catering need to have to them a look ].” at the current state of the casino industry . While the market is notorious Alex Alvarado for its steadily , VP of Casino evolving Operations landscape at MGM , the National challenges Harbor facing Hotel the & Casino gambling Maryland industry are unprecedented , and they are as impactful as they have been swift . Second , with the changes to the casino and In terms gambling of concrete markets insights come modifications showing the value to the of player skill-based psychographics games , some that also argue need that to there be taken isn ’ t into enough account adoption . The to traditional make the model case , of when “ know in fact your , the player data ” must exists . now Take take a look into at consideration the graph below the impact showing of the a new underserved landscape market and a of new 21-49-year-old generation of players potential . players , one that views the casino floor and gambling in general much differently . Third , with the changing psychographics of players , operators need to create stronger definitions of some of their current players compared to the
TABLE 65 GameCo versus Spot Revenue Distribution
Peak 30 Years Old desired new and future player .
Percentage of Spending
30 %
Coupled 23 % with this , we need to look at the behaviors of these players when Slots it comes to the casino floor ’ s most valuable assets : slots . While slot machines have traditionally been the major revenue
15 %
generators and ideal revenue-per-square-foot units , the new breed of player behaves differently , and 8 % survival and growth depend on understanding that behavior intimately . Lastly , once all of . these points have been fleshed out , we need to look at the opportunities that exist in new games ,
specifically 0 % , those games which can help usher in a new generation of player .
Age 20 30 40 50 60 70 80 90
GameCo
45