What have the critics of esports and casinos been saying?All the conclusions I have heard seem to have the same underlying sentiment:
- “When millennials get to be in their 40’s they will become slot players”
- “All gamers are ‘hoodie‘ wearing teens.”
- “They spend all their time in basements and are anti-social.”
- “Gamers are not Gamblers.” (my personal favorite)
I can add many other comments and quotes, but I will break down the four above to get to the point.“When millennials get to be in their 40’s, they will become slot players.”According to the Pew Research Center, the oldest millennials enter middle age this year [1]. The generation is now between 25 and 40. The evidence states currently: “Players between the ages of 60 and 70 represent the largest share of slot revenue for the casino. By contrast, players between the ages of 20 and 30 represent the smallest share of revenue, even lower than that from players between the ages of 80 and 90,” said Corey Pradveen, a partner at t2 Marketing International [2].So why are the stats for millennials not in favor of slots?Many millennials already spend much of their entertainment time on video games. They are motivated by constant dopamine injections and have expressed that the thrill of slots doesn’t move them as much as competitive and non-competitive gaming does.According to the American Academy of Neurology, a study published in the scientific journal Nature in 1998 showed that playing video games releases the feel-good neurotransmitter dopamine. The amount of dopamine released while playing video games was similar to what is seen after intravenous injection of the stimulant drugs amphetamine or methylphenidate [3]. I haven’t seen any studies showing slots offer the same kick!So if slot games don’t excite them, what will?There is a very high bar for entertaining the new generations. The solution to the problem is not as simple as getting them to “see the light” of slots. While it sounded like a good idea, the “skill” slot model has so far found limited success. Even if a slot machine has the coolest Marvel characters on it, in my opinion it would be more profitable long-term to provide the entertainment they already like and monetize that. It reminds me of the old quote from The Washington Post in 1941, by a then-popular actor George Jessel who said, “you give the people what they want and they’ll come.” The future of the Casino and Entertainment industry is hinging on this timeless principle. “All gamers are ‘hoodie” wearing teens.”To address this point, we will have to look at the profile of the millennial generation, which, as referenced above, are far from their “teen” years.Who are they?More than half of millennials are not married and those who are got married later in life [4]. This means that they are not supporting a spouse or children till much later in their lives, which translates to more disposable income. Knowing this is helpful because seniors (that makeup most of the slot players), as we have learned, also have disposable income for the same reason having cut the extra expense costs associated with children and homes. And millennials are now the largest generation in the U.S., surpassing baby boomers in 2019 [5].“They spend all their time in basements and are anti-social.”As Mike Snider of USA TODAY said eight years ago: “Video games aren’t what they used to be – and neither are gamers.” The average gamer was 31 years old at the time. Fast forward to 2020 and according to the Entertainment Software Association, the average age of gamers is now 35 to 44 years old with 64% of American adults playing video games – 41% of which are women [6].And games have become a staple in the entertainment diet across all ages: According to a 2021 study, 81% of gen Z, 77% of millennial, 60% of gen X, and 42% of baby boomer participants reported playing games within the first six months of the year [7].Millennials and future customers make up a large part of any consumer customer-based business.“Gamers are not Gamblers.”Let us look at wagering on esports, which mind you is licensed in very few places. Valve, developer of the popular first person shooter game CS:GO came under fire since 2016 for facilitating “skin betting”, in which players would bet in-game items on competitive matches [8]. Statistics vary, but most elude to an already billions of dollars market that is growing each year.I like an observation that the creator of Atari Nolan Bushnell (whose son Tyler Bushnell is speaking at this year’s CEC) describes in an interview on the excitement of players: Nolan recalls in a video interview that he had placed his first Pong game in a tavern in the 70s and the people were coming in early to get time on it. He says that was the first time he ever saw quarters lined up to reserve a space. I, too, have had a similar observation firsthand at our Gameacon events, where we run multiple title tournaments. Gamers were excited to bet on each other and the extra added chance of winning a big prize, including gaming equipment, money, and bragging rites.—————-In conclusion, after spending eight years in video gaming and twenty-six years in casinos with my brother and partner Ari Fox, I will say that breaking down your customers’ behaviors along with observing and truly knowing them is the key to success. We also know that change is complex, and the questions and pitfalls could be significant and sometimes costly. If approached with the correct knowledge, the challenge may not seem so overwhelming.Ben Fox is an organizer of Casino Esport Conference, now in its 6th year. This year’s conference is on March 23 & 24 at the Alexis Park Resort.
Citations:
- https://www.pewresearch.org/social-trends/2020/05/27/as-millennials-near-40-theyre-approaching-family-life-differently-than-previous-generations/
- https://ggbnews.com/article/understanding-and-planning-for-a-new-generation-of-players/
- https://www.brainandlife.org/articles/how-do-video-games-affect-the-developing-brains-of-children/
- https://www.theatlantic.com/ideas/archive/2021/05/millennial-grandparents-unequal-generation/618859/
- https://www.pewresearch.org/fact-tank/2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/
- https://venturebeat.com/2020/07/15/esa-ceo-64-of-u-s-adults-are-gamers-46-of-players-are-women-older-people-are-playing-more/
- https://www.talkesport.com/news/more-than-80-gen-z-and-millennials-play-video-games-now/
- https://kotaku.com/court-dismisses-lawsuit-of-parents-whose-kids-gambled-w-1848361333
