SAN DIEGO – Native American casinos have been slower to adopt social gaming than the commercial industry, but more tribes are seeing it pay dividends in attracting players to their properties and generating a modest amount of revenue as well.
Speaking Tuesday on a panel about social gaming at the National Indian Gaming Association conference and tradeshow, Richard Schwartz, president of Rush Street Interactive, said tribes are also turning to social gaming to prepare themselves in the event that real-money online gaming is permitted in their states in the future.
Schwartz’s company provides social gaming platforms to casinos, which he said have proven to be effective.
“Social gaming and online gambling can be categorized as the most effective marketing tools our industry has seen in a long time,” Schwartz said.
When players leave the property, you’re losing an opportunity to engage them. Social gaming allows casinos to continue to interact with those players, and interact with new ones who have yet to visit.
“Very rarely can you reach an audience that hasn’t been to your property before, connect with them in a low-risk environment, and incentivize them to visit. (And) you are also able to engage lapsed players that haven’t been to the property in a while.”
“What we have seen is that a land-based player who signs up for the social platform visits the property more than 20 percent more often. I am not aware of any other tools that provide the same type of return.”
If casinos are preparing for real-money gambling, the same platform used for social can be used for that as well, Schwartz said. Smaller casinos can bring in five figures a month in social gaming revenue and larger casinos upwards of six figures.
The cost of conversion should be calculated as quickly as possible, as well, he indicated. In New Jersey, where online gaming is legal, commercial casinos are spending an estimated $500 per person to acquire new players. Tribes can spend roughly $10 per person to acquire players today by using social gaming platforms.
“It makes more sense to buy players today than wait until your state legalizes it,” Schwartz said.
One casino happy about moving into the social gaming platform is Lake of the Torches Resort Casino in northern Wisconsin.
Lake of the Torches assistant general manager Duane Chapman said the resort did so to extend their brand awareness by expanding their reach and increasing their database of players. The property now draws players from Chicago, Minneapolis and Iowa.
“You are introducing yourself as a brand, to new people in a different market,” Chapman said. “You are introducing them to your property. That is important.”
Chapman urged other tribes to get involved with social gaming, saying it has an impact beyond helping get people to the casino. It can also help with economic development for tribes that have other businesses and operations.
Research has shown that online players are generally 10 years younger than land-based players. It’s an important way to hit that demographic, Schwartz said.
“You always hear about how everybody is having a hard time attracting (younger players). A lot of those players don’t feel comfortable going to the property because they don’t know how to play the games. Slots have been the No. 1 driver of social gaming in the last 10 years. A large number of younger players are engaged with slots online… That is good for the industry.”
