Five things we learned at GiGse – the millennials’ view

Five things we learned at GiGse – the millennials’ view

Friday, June 24, 2016 Posted by Joanna Mapes
Millennial members of the Clarion team pick out some of the key points they learned at GIGse 2016

Traditionally an iGaming event, GiGse this year has made a leap away from iGaming (which, as we all know, struggles to get policy-makers’ and regulators’ approval in the USA) to look at the future of player engagement over a variety channels, available today and possible in the future.

Some millennial members of the Clarion team pick out some of the key points they learned at the event.

1 - The need to take a risk and realise what’s important NOW

It was at a brilliant forward thinking session called: “Casino of the Future – Exploring the shape of the next 10 years” with representatives from Spectrum Gaming Group, Growth Advisors, YWS Design & Architecture, IGT and GLI.

The general consensus of the panel was that the industry needs to embrace the fact we live in a digital age. Casinos need to establish a tech orientated infrastructure which will enable them to have a holistic view of the data available to them. For example: ‘Do you make more money from bets or from selling Coca Cola?’

Another conclusion that came out of the panel session was that a major barrier to the progress of casinos is the industry’s appetite for risk. It’s an unfortunate reality that many establishments fail to recognise the reward over the initial expenditure that it would require. ‘The decline of the millennial gambler is not due to lack of interest but a change of interest’ said Salim Adatia, Vice President, GLI.

Once operators allow themselves to take more of a risk and attempt to satisfy these changing interests, real progress will be made.
Conference Producer Curtis Roach 

2 - Make it personal to make it successful

Both Generation X (the older generation) and the Millennials are tech savvy and are frequent social media users but Millennials may focus more on celebrity influence, while generation X will steer more towards postal advertising/ brand loyalty etc. Both can be targeted by email, however it’s found that there is a better response rate from digital ads. Facebook is important and people are influenced by friends, however young Millennials are abandoning Facebook – they don’t want to be where their parents are. They use social media around 1 hour per day.

Mobile is important for both generations. 50% use mobile to access social media sites and the web. Only 42% have made a recent purchase on a mobile device (perhaps linked to risk of security issues; people not wanting to put their credit card details into the system). There is a real opportunity for apps and loyalty programmes: Millennials value loyalty – promotions such as points, deals etc. They are looking for a customised experience and more interactivity.
Head of Operations Susan Miller

3 – New Jersey holds the key for wider sports betting regulation

Vernon Kirk Director at the Delaware Lottery and Dan Wallach of Becker & Poliakoff, P.A. are both confident in the future of legalised sports betting, starting with New Jersey. The number of votes necessary in the 3rd Circuit decision to approve NJ sports betting might be in favour and that would act a ‘gateway’ for other states to follow suit in making their own case for legalisation of sports betting on a state by state.

Approximately $40 million USD was spent on sports parlays last year in the state of Delaware alone. The argument in favour of Delaware offering at least some form of sports betting (albeit three team parlays) is that it is on a state run basis as opposed to independent operators (as is the current argument being put together in New Jersey).

Joe Asher of William Hill was hesitant on the notion of New Jersey being legalised for sports betting within the next five years. Asher stated the power NFL holds over the sports betting market; they are still very opposed to accepting any form of legislation allowing their sport to be part of gambling within the USA anywhere outside of Nevada. When asked if the introduction of an NFL stadium to Vegas or the increased pressure of an NFL team based in the UK would further add pressure and increase the chances for legalisation of sports betting, Asher still felt there was a long way to go and that it would take more than one sports team from one league relocating to Vegas or the UK for that matter.
Delegate Sales Executive Alex Crockford

4 - Communication is key with an ageing regulator

Some say that the taxes on revenue are so high that investment in casinos is naturally restricted but they also say that this can be circumvented through licensing out new areas to suitable brands such as Red Bull.

It is thought that regulators can help with the progression of casinos through making themselves more available to operators and suppliers. This will help to encourage more flexible, adaptive rules that can incubate and encourage the necessary changes. The reality is, as stated by Michael Pollock, regulators are not getting any younger and the majority are reaching retirement age. This is all the more reason for open communication. Regulating to influence an industry that is targeting a generation with very different interests to their own is challenge within itself, so, to circumvent an irrelevant set of regulations, communication is the key!
Conference Producer Curtis Roach

5 - eSports doesn’t need traditional media to thrive

The eSports betting industry alone is projected to be worth $1.8b by 2020. The 2015 League of Legends World Championships had 334m viewers over 4 weeks. eSports doesn’t need traditional TV for mainstream acceptance. Soon there will be an IVY League scholarships for eSport. What will elevate eSports additionally will be big lifestyle brands like Nike and Mercedes entering that market too. This in turn means more publishers will push to eSports platforms. Gambling on eSports will also grow and casinos need to think differently about their real estate usage if they want to incorporate eSports into their venues.
Sponsorship Manager Pras Sri

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