“The casino industry is in trouble.” That was the disturbing pronouncement from John Acres, the keynote speaker at the Casino Marketing & Technology conference being held in Reno this week.
That may seem difficult to believe, since according to the American Gaming Association, commercial (non-Tribal) gaming revenue reached a record $66.66 billion in 2023, 10.3% higher than 2022, while 30 of 36 states set annual records for commercial-gaming revenue.
However, as Acres pointed out, “Adjusted for inflation, we’re actually 5% behind 2008 levels.” He blamed the problem on two factors: 1. the increasing competition for entertainment dollars from Amazon to Netflix and, perhaps most importantly, 2. the industry’s failure to deliver “self-esteem to our customers.”
He explained, “Our revenues say that we don’t provide our players with self-esteem at the same level that we did 15 to 16 years ago.” He noted that wonderful technological advances like TITO (ticket in ticket out) vastly improved convenience, but it also removed most of the change people from the casino floor. “Customers used to go in and have a personal relationship with these attendants. Today, no one is there to ask, ‘How’s your dog Spot?’ or ‘How are you doing today?’”
Acres, through his various companies, pioneered today’s tracking systems and was the first to make it possible to offer free play to gamblers. But today, he believes that technology has shifted players’ loyalty away from the casino and, instead, just to the place that offers the most free play.
Likewise, he said slot manufacturers have also taken a share of properties’ loyalty. “If you don’t have Lightning Link or Wheel of Fortune, your players will walk and find a casino that does.”
With his latest company, Acres Manufacturing, he has been working to capture more data and take action in real time on often-overlooked stats, such as when players are on a losing streak or approaching their budget limitation.
Rather than across-the-board rewards based on player tiers, Acres likes to look at individual play sessions and give more meaningful rewards, such as individualized double-jackpot times and personalized bonuses on the machines.
He also takes the opposite tack to rein in player abuse. He cited a Las Vegas casino where he recommended “firing” five of their top video poker players based on their play patterns. His data predicted that “the casino would save $700,000 a year in wasted rewards and greater win on the machines.”
Back on the positive side, he said, “The esteem you get from a discount isn’t nearly as powerful as the esteem you get from someone who cares about you.”
It’s common knowledge that players’ two most important “budget” items are money and time. However, Acres added a third: boredom. That’s why he suggested that bonuses, such as double-jackpot periods are more powerful than additional free play. He argued that we can add excitement to help with the “boredom budget, while at the same time monitoring the “money” budget so the player doesn’t run out way before their normal “time” budget.
He concluded by saying, “All I’m asking you to do today is to start thinking about whether you want to continue to reward free-play points as an ever-more-isolated solitary experience. Do you want to continue to allow the game manufacturer to own the loyalty of the play? Or do you want to start doing something to take it back?”
The annual Casino & Technology Conference is hosted by Raving Consulting and this year is being held at the Grand Sierra Resort in Reno July 16-18. The 2025 Conference will shift to the Pechanga Resort & Casino in Temecula, California.
