Non-gaming amenities are playing a larger role in casino operations, and executives are looking to capitalize on it, not only in Las Vegas but across the country.
In a panel discussion, “Hand-in-Hand: How Gaming and Non-Gaming Work Together,” Holly Gagnon, president & CEO of Seneca Gaming Corp., said customer bases have evolved.
“What we saw at one point of being a very gaming-centric market now our customers are looking for the full experience,” Gagnon said. “If you are a destination resort, they are looking for those amenities that are important. We want as much as the gaming piece as we can get, but we understand those amenities can attract people that aren’t gaming centric and that we can get a share of that cash revenue in the door. They are very valuable as well.”
It’s about the retention of gaming guests and satisfying them but also “differentiating ourselves with our competitors” to attract other guests, Gagnon said.
“We’re in Niagara Falls, and we get nine million tourists, and we ask how do we draft people already there and how do we get them to gravitate to our property and get that foot traffic. That’s going through our minds right now.”
Gagnon said when it comes to restaurants and entertainment, it’s important to have brands as partners to have a “halo effect on us” and so that they are aligned with customers.
“You have to make sure whatever we are doing has some brand value,” Gagnon said.
Gagnon went on to say that “sometimes breaking even is OK. It’s about a profitability over a lifetime, and it’s important to invest in the brand.”
“We hosted a KISS concert, and there were 5,000 customers. There was great value to it even if it didn’t show in the short term investment.”
Ramesh Srinivasan, president & CEO of Agilysys, a hospitality software company, said he’s worked in the worlds of gaming and non-gaming both, and it’s clear that non-gaming is becoming more important to resorts and casinos.
“It’s being driven by the millennials, but also people like me,” Srinivasan. “My approach to technology and expectation of entertainment has changed as well. There are people coming not for gaming and making money but for the overall entertainment experience.”
Millennials want casinos to know who they are and what their preferences are, such as what time they have dinner and what allergies they have, Srinivasan said. It’s important casinos have a common platform with a “treasure trove of data, point of sale and property management.” It should even track activities such as golf and helicopter rides, he said.
“We are bridging that work and giving casinos a views of that patron,” Srinivasan said. “We see a lot of potential. We see more and more investment in non-gaming, and becoming more and more important along with the gaming part.”
Gagnon said that hosts and their knowledge of customers made the casino trip an experience, but systems today have that capability to anticipate needs and “really make a great experience for our guests.”
Thomas Soukup, chief systems product officer with Konami Gaming, said the importance of non-gaming depends on whether it’s a local casino or a destination. He said MGM Resorts International gets more than 70 percent of its revenue from non-gaming, but that won’t be the case with a tribal casino that has a hotel and restaurant.
It’s important to track customers because traditionally it was done only for slot play, and casinos didn’t know how much customers were spending in their restaurants and hotel, Soukup said.
“There’s wasn’t a global loyalty program for your entire guests,” Soukup said. “What I see over time are more and more integrated points between food and beverage, and restaurants and hotels. Casinos are packaging offers that entice guests to spend at their properties versus just spending at slots or spending at tables.”
Gagnon said there’s a big difference between casinos in Las Vegas and regional ones where margins are smaller. One size doesn’t fit everyone, and no one can assume non-gaming will drive casinos outside of Southern Nevada, she said.
Rick Arpin, senior vice president of entertainment for MGM Resorts International, said his company’s push is that there’s value for customers beyond any point of spending.
“There’s an evolution in the Vegas market where you have evolved from gaming to non-gaming,” Arpin said. “I think we have evolved and almost passed that with the idea of brand value. Other companies in other industries think about this all the time. In my space, we realize anybody can be an entertainment company if they do it well.”
MGM opened T-Mobile Arena about 18 months ago; it’s now home to concerts, basketball and the Vegas Golden Knights. The new NHL franchise starts its home season next week.
Customers are demanding “so much more from us these days,” and that’s not unique to the hospitality industry, Arpin said. It’s about trying to find “that next thing to attract millennials, he said.
“We are spending three days here talking about millennials,” Arpin said. “That is where I can play, and that is entertainment. There are a lot of great hotel companies in the world, and a lot of great gaming companies in the world. Several of us have done well combing those two [for] the next evolution that will make us stand out from the crowd.”
What panelists said will be important to follow in the industry is cashless transactions, where people’s phones, for example, are their wallets. It’s already part of other industries, and people can use the technology to buy, among other things, coffee.
“I think everyone is excited about that,” Gagnon said. “That is going to be a game changer.”
