Gaming Loyalty Trends and Challenges
The Global Gaming Expo (G2E), held at the Venetian Hotel and Casino and organized by the American Gaming Association (AGA), provided a fascinating look into the evolving landscape of gaming loyalty. The conference took place over two days and, even though our press rep, David Slavick, co-founder Ascendant Loyalty could participate just on Day One, we found the sessions offering valuable insights into the industry's current challenges and opportunities.
From the VIP-driven loyalty programs of the past to the modern challenges of engaging younger, digital-first audiences, the discussions at G2E highlighted both successes and areas for adaptation. Here are some highlights for you.
1. The Shift in Loyalty Programs: From VIP to Broader Audiences
Historically, loyalty programs were built on personalized connections with high-value players. Casinos used detailed knowledge about their top customers’ preferences and habits to foster long-term relationships. However, as discussed in the session Casino Loyalty 2.0: Create Lifelong Patrons, the industry’s focus has shifted towards mass-market strategies that prioritize broad reach over individualized attention. Notable points from this discussion include:
- Loyalty 2.0: Julie Carcamo, President & Chief Brand Strategist at J. Carcamo & Associates, highlighted how this shift has diluted the precision and effectiveness of loyalty programs. She emphasized that casinos must return to their roots in personalized service while also adapting to tap into younger, more digitally oriented audiences.
- Brand Differentiation: Adam Borden, VP of Digital Marketing at Live! Casino & Hotel, added that a strong brand identity is key in today’s crowded market. Casinos that engage in “copycat” strategies, simply mimicking competitors' promotions and offers, risk losing their unique appeal. Differentiation is essential to fostering lasting loyalty in a sea of sameness.
2. Engaging Players Beyond Traditional Rewards
Traditional casino loyalty programs relied on tangible perks like free tickets or merchandise, but presenters at G2E made clear these incentives may not be enough to build deep, long-lasting relationships with players. Chris Province, President of Player Performance Group, noted “gifts are often viewed as “intangible” and difficult to measure in terms of their actual impact on customer loyalty.” Other key insights shared in this session include:
- Experiences Over Gifts: Players are drawn to casinos for the experiences they offer, not just for the tangible rewards. Creating memorable experiences that are unique to each brand will have a far greater impact on loyalty than generic gifts or promotions.
- Personalization Matters: Although personalization has been a hallmark of casino loyalty programs in the past, many operators have stopped routinely surveying their members. To improve customer engagement, casinos must learn more about their players’ preferences and leverage this data to deliver tailored experiences.
3. Converting Online Players to In-Person Casino Visits
As online gaming platforms grow in popularity, one of the biggest challenges facing brick-and-mortar casinos is how to attract players back to their physical locations. For example, MGM’s online platform, MGM Bet, has expanded the company’s reach by engaging a new audience of online bettors, but the journey to convert online bettors to physical visits remains ongoing. Meeting this challenge is not easy.
- The Digital Divide: Younger players, particularly Gen Z, are more comfortable with online gaming due to its convenience, lower financial risk, and less social pressure compared to in-person gaming. Many prefer betting via their mobile devices, where they can place smaller bets in a more casual environment.
- Bridging the Gap: As Michael Chapman, Director of Table Games at Mardi Gras Casino & Resort, pointed out, casinos need to offer more than just gaming to attract online players to their physical properties. Social experiences, live entertainment, and food and beverage options can create a more welcoming environment for younger, digital-first players.
4. Sports Sponsorships as a Bridge to Younger Audiences
One notable trend discussed at G2E was the use of partnerships and sponsorships with professional sports to reach younger audiences. With sports broadcasts—especially NFL games—dominating TV ratings, aligning with sports franchises provides casinos with an opportunity to engage Millennials and Gen Z.
Erica Kosemund of Choctaw Casinos & Resorts stressed that sports are an emotional touchpoint for many people, suggesting that casinos can build deep, emotional connections with fans that transcend traditional transactional loyalty.
Ryan McGrath of Mille Lacs Corporate Ventures described how his properties sponsor local sports teams to target younger demographics. This approach helps build visibility within the community and creates brand affinity among sports fans, even if the casinos aren’t direct sponsors of major events.
5. Threats to Traditional Table Games
Another key issue raised at G2E was the growing threat that online gaming poses to traditional casino table games like poker, blackjack, and roulette. Younger generations have shifted away from these games in favor of online options that allow for smaller bets and quicker results. As mentioned in other sessions, Gen Z players are accustomed to the convenience of mobile gaming, where they can place low-risk bets with minimal effort. Many of these players find the traditional casino environment, with its higher minimum bets and social interactions, less appealing.
To attract younger players, casinos must rethink how they structure their table games. Donald Snyder of Gun Lake Casino suggested that flexible betting limits and faster-paced gameplay could make traditional table games more accessible to new players.
6. Reimagining the Casino Experience for the Next Generation
To remain competitive in an increasingly digital world, casinos need to rethink the entire customer journey, from the moment players walk through the door to how they interact with games and amenities. At G2E, it was clear that future success hinges on creating a seamless blend of online and in-person engagement. Two strategies were discussed in this session:
- Customer-Centric Operations: Donald Snyder of Gun Lake Casino emphasized the importance of improving operations to enhance the player experience. Simple changes, like ensuring drinks are delivered before players need to ask and reducing waiting times at tables, can significantly improve customer satisfaction and loyalty.
- Flexible Limits and Experiences: By offering flexible betting limits and creating more relaxed environments, casinos can appeal to both high-rollers and casual players, making the experience more inclusive and less intimidating for newcomers.
Bridging the Old and New in Gaming Loyalty
The G2E Conference underscored the complex challenges the gaming industry faces in maintaining its legacy of personalized, VIP-driven loyalty while adapting to the demands of a younger, digital-savvy audience. Moving forward, operators will need to blend traditional, in-person experiences with the convenience and flexibility of online engagement.
To bridge the gap between online and physical experiences, casinos must offer a mix of personalized services, unique in-person experiences, and innovative loyalty programs that meet the expectations of younger generations.
By evolving with the times while staying true to their roots, casinos have the potential to build lifelong loyalty in a rapidly changing market.
