I was talking with a new business partner this past quarter about the younger generation and our industry. Conversations used to be about Millennials, but now, they are about Gen Z. And suffice to say, they never end with clear solutions. The relationship between our industry and the younger generations don’t appear kismet. This topic is one that we need to question and discuss at a strategic level and fast.
Traditional land-based casino revenue in the U.S. has remained relatively flat in Q1, up just 1.1 percent year over year, while February saw a notable decline of nearly 6 percent. In contrast, digital gaming is growing rapidly, with iGaming up almost 28 percent and sports betting revenue increasing more than 23 percent compared to the same period last year. As the American Gaming Association noted in its March report, “iGaming and sports betting are driving outsized growth while traditional gaming shows signs of plateauing.”
These aren’t just numbers; they’re signals.
Signals that reflect a changing landscape fueled in large part by generational preferences. Millennials and Gen Z, now the majority of the adult population, are showing far less interest in the traditional casino floor than previous generations. A 2023 YouGov study found that “only 21 percent of Gen Z and 28 percent of Millennials express interest in visiting a casino.” Compare that to Gen X and Boomers, who continue to anchor land-based gaming engagement. Natalia Caruso’s article in our last edition on authenticity in marketing to attract Gen Z rings truer as the days pass.
It’s no surprise then that online gaming, with its convenience, personalization, and seamless tech integration, is showing a stronger growth trajectory. The future of our industry, it seems, will not just be about floor space; it will be about screen space too.
So where does this leave brick-and-mortar casinos? While investments in high-end spas, gourmet dining, and immersive entertainment have certainly elevated the resort experience, as I’ve said a decade ago, ‘we can’t spa and restaurant our way out of this conundrum’. The real challenge and opportunity is to identify value propositions that authentically appeal to younger demographics who are signaling that they do not have anywhere near the propensity to game as did previous generations.
This may mean reimagining loyalty through lifestyle integration, innovating on social and skill-based gaming formats, or creating digital-physical hybrids that meet younger consumers where they are, on their devices, with experiences that feel personalized, relevant, and fun. As the AGA stated earlier this year, “Future growth will come from aligning with evolving consumer behavior.” The answers will not come easily, but to my first point, they will not come at all if we do not start asking the right questions.