Stateside
Sharon Harris looks at the wreckage piling up from COVID-19 – but notes there are bright points hidden in the murk
T
hanks to “The Graduate,” a very popular late 1960s movie, actor Dustin Hoffman and musical duo Simon & Garfunkel soared to stardom. The opening scene shows Hoffman’s character, Benjamin, floating aimlessly in his
home’s swimming pool during his college graduation party. A guest calls out to him, emphasizing “plastics” will be an important word in Benjamin’s future. Following a recent nationwide American Gaming
Association (AGA) media conference call, I remembered that scene, but substituted the word “demographics.” As American casinos reopen, operators and equipment
manufacturers should recognize a potential long-term demographic customer shift. They would be wise to focus not just on who is coming, but on what they want and how they want to do it. Seniors’ significant spending always held sway with management. Now, Covid-19 has disproportionately affected that population’s willingness to show up. A June Pew Research Center report revealed that 26% of people, ages 18-29, and 34% of customers, ages 30-49, view Covid-19 as too dangerous to risk traveling to a casino. That compared to about 50% of the over-65 crowd who may be too afraid to travel by plane to a casino city. Smart operators realize that younger customers from
different regions are a lifeline. This age group, less bothered by imposed restrictions, will drive hours to escape stay-at-home boredom. Overall, the Midwest’s, Northeast’s, and West’s declines were in the mid-40s per cent, but southern travel dropped “only” 31% because of more relaxed attitudes toward virus protective measures. These numbers should motivate casinos to reconfigure
10 SEPTEMBER 2020
their products for younger customers and ask numerous questions. What type of games? What is the gaming floor’s layout? Forget theater shows, arena concerts, sporting events or spotty indoor dining availability for now. Operators should also understand that images of
plexiglass everywhere will turn off plenty of customers. We all know about the casino “experience,” but it takes effort to have fun when physical limitations prevent conversation and camaraderie. I experience that weekly at the salon, but I have no choice if I want to be made “beautiful.” What was once a relaxing social interlude is now an in-and-out process without amenities. The Innovation Group recently conducted a
comprehensive survey that compared player behavior and attitudes, first in May when many properties reopened. They then compared those responses to August, when 85% of all casinos had reopened. In May, although 40% planned to return, only 17% actually did. However, this data tells an incomplete story. Repeat customers came more often and spent more, which helped regional markets make adjustments to their own costs. Without a vaccine, one third will stay away. On the bright side, by a 9-1 margin, guests complimented casinos on installing “an appropriate level of safety measures” where 85% of guests complied with all safety mandates. Because gaming is recreational, nothing matters without discretionary money. Most early customers will moderate their gaming budgets and spending when reality sets in and stimulus or unemployment payments end. Case in point, MGM just announced the layoffs of 18,000 US employees, or 25% of their workforce. MGM’s
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