The gambling industry has been able to survive for hundreds of years despite the changes that come with each generation. However, in recent times, the brick and mortar casino industry has struggled to get a foothold on younger customers, even before the COVID-19 pandemic.
Guest author Jacek Michałski tells us why Gen Z poses bigger challenges for land-based casinos than millennials. To find out more about Jacek Michałski, click here.
The “younger generation” is split into two distinct demographics: Generation Y, those born between 1981 and 1996, popularly called “millennials”, and Generation Z, those born between 1997 and 2016.
Millennials are the first generation to turn away from the standard land-based gambling industry. Unlike their predecessors, millennials strongly dislike slot machines and table games. When they do gamble, they tend to go for other games where casinos have a lesser edge.
You can see this clearly with the Polish market as young Poles have preferred interactive online games and live dealer casino games. If you are looking for games that appeal to the younger generation, you can find them at https://kasynos.online/
Gambling marketers have yet to crack the code on how to usher in millennials to brick-and-mortar casinos. At the same time, Generation Z is now coming of age, with many members also shying away from casino gaming.
Here are three of the biggest reasons we have found for the continued difficulties gambling marketers have faced with Generation Z members.
Generation Z Members Have Higher Gaming Standards
Both generations are similar to each other in terms of exposure to technology. Unlike previous generations, people from Generations Y and Z grew up with high-speed internet and mobile devices. Because they grew up playing video games, the excitement offered by standard gambling games may not appeal as much to them.
This is rapidly becoming a major problem for the land-based casino industry. Based on the latest census of the United States, a little more than half of their population is part of one of these generations (roughly 26% for Generation Z, and 24.5% for Generation Y).
Generation Z members are typically more exposed to technology than Generation Y members. What this means is that the “innovations” and “advancements” trumpeted by gambling media for slots and table games will likely fail to impress Generation Z players due to their exposure to traditional video games.
Video games today are leaps and bounds ahead of gambling games. However advanced a modern-day slot might be, it will always have the same standard structure of spins and payouts. This is in stark contrast to video games, where there is a wider variety of goals and methods to try out.
To market land-based casinos to Generation Z, it is necessary to find a way not to compete with the technological advancement of video games, but to offer an alternative that cannot be found elsewhere.
Generation Z Members Have Shorter Attention Spans
Generation Z members have a shorter attention span, averaging just eight seconds. While this statistic would appear to incline Generation Z members to be receptive to gambling online, it also means they will not have the patience for the more relaxed gaming pace offered by brick and mortar casinos.
Their shorter attention span does not mean they are less discerning than previous generations, however. Generation Z members have also been found to be more comfortable with multi-tasking, more individualistic, and thriftier than their millennial peers.
Online casinos should be right up the alley of Generation Z members. Brick and mortar casinos still have a long way to go to attract this demographic, because of their fundamentally slower pace. Such casinos often make up for the slower action by offering various comps, which are popular among older demographics, but less so among younger populations.
Generation Z is More Cautious About Their Money
Generation Z members grew up with social media and often view shopping as a social activity. What this means is that, before making a purchase, they canvass and cross-reference to make sure they are getting the best price before committing.
Slot machines are obviously one of the biggest money-makers for land-based casinos. Generation Z players have largely stayed away from such games. This does not mean they no longer enjoy gambling; it appears that the younger demographics want something in exchange for the edge they lose on gambling games.
A future casino geared toward Generation Z players will likely have to move away from slots and focus on gambling games that are fun and unique enough to offset the house edge. Examples of such games tried out by Las Vegas casinos are TopGolf Swing Suite bays and slots with skill-based mechanics.
Casino operators will continue to innovate and experiment with different marketing strategies to attract and engage Gen Z in the coming years.