Millennials: Gaming, Smart phones, and Smart Slots
Middle-aged and older gamblers have always loved traditional slot machines, but millennial consumers are not as captivated by pushing a button and sitting idly by while a random number generator determines the betting outcome.
Many inside the gambling sector believe this decline in business will reverse itself as the millennials reach middle age – the sweet spot of traditional slot machine users and Lottery players alike. We do know that recreational gaming preferences change as people age. But we can probably expect the combination of factors that drive consumer behavior (technology-enhanced player experiences, Mobile gaming, explosion in new game concepts and play-styles, etc.) to disrupt the heretofore predictable migration of player engagement over to slots and Lottery as consumers mature. Previous generations were not exposed to the ubiquitous variety of gaming options that the current generation of “digital natives” has been immersed in for many years now. It may not be realistic to think the next generation will repeat the patterns of their forebears.
So what is the sector to do? The world of commercial operators is adapting just as we would expect them to – by giving the consumer what they want. Regulatory restrictions are smoothing a path for that by becoming more liberal in general. Game styles like DFS and skill-based games are further complicating the whole regulatory landscape. And ‘complicated’ is not good for sectors like Lottery which depend on the ability of legislators to enact laws to protect the consumer and society, and it is not good for regulators who depend on clarity of laws to enforce them effectively.
Historically, for instance, games that included elements of both skill and luck, like poker, have been regulated as “gambling” that impose higher taxes, higher standards of consumer protection, and much stricter regulatory standards to comply with. Currently, regulators typically monitor and control the promotional tactics used to attract and retain players. There are restrictions to how free-plays, bonus plays, and other enticements can be used to drive increased playership. Insofar as skill-based games are not classified as ‘gambling’, consumer protection rules like these may not be applied, or their application may not be as rigorous.
Smartphones Fuel Gaming Among Millennials
Millennials – the tech-savvy generation of young adults who are coveted by marketers across all industries – are using mobile smartphone technology to fuel unprecedented interest in gaming.
In a recent report by the UK Gaming Commission, the percentage of 18- to 34-year-olds gambling on their smartphones has increased from 10% in 2008 to 17.5% in 2014. Mobile gambling is an estimated $36 billion behemoth worldwide. This is the first truly “on-line digital native” generation, and their use of mobile phones reflects their familiarity and proficiency with technology – they spend an average of 3.2 hours per day on their smartphones.
This heavy use of smartphones is great news for the Lotteries and commercial gambling companies who have moved their services online. Advancements in smartphone technology have enabled the placing of bets for sport, playing online poker, accessing online casinos, and playing the Lottery. More access means more opportunity for players to engage with gaming operators. Millennials can now gamble via social networking sites and play games through apps, while providers can capture behavioral tracking data to inform game design, market segmentation and targeting, and promotional strategy.
The explosive growth of Mobile gaming is also diving dramatic shifts in game development, and player attraction and engagement tactics. Game developers traditionally focused on achieving such metrics as DAU (daily active users) and MAU (monthly active users). New thinking centers on “regulars,” those who play a certain game every day (in many instances, 90 minutes or more per day). Developers try to create a gaming environment that will continue to engage such high-value frequent users. Frequently, this can be achieved through social gameplay within a game…the player-to-player interactions, sharing, and competing that appeals to dedicated players. To emphasize the strategic importance of regulars, Kabam, a company that has created six game titles that generated $100 million in revenue, is working to develop games that may last for as long as a decade! And with the release of Lumberyard, a free, cloud connected game engine, Amazon has now moved into gaming. Amazon-owned Twitch also just acquired Curse, a gaming content and resource hub visited by more than 30 million people each month.
The stage is set for unprecedented innovation and sector growth … And sector disruption.
Peter Simoner, CEO of Loteria Kombetare received his Commitment certi...Read more
European Standard on reporting in support of online gambling supervision notes considerable progress
On 12 and 13 September the CEN Working Group drafting the Standard hel...Read more
At the fourth European Commission Sport Unit Breakfast EL was invited...Read more
Hosted by EL Member Hrvaska Lutrija, this year’s successful seminar provided an excellent opportunity to hear from experts in RG and CSR, understand how other lotteries are implementing their progra......Read more
Hansjörg Höltkemeier re-elected as EL President for the period 2019-2021 Re-elected EL President Hansjörg Höltkemeier (right) said, ‘‘We have had three fantastic days at the special 10th edi......Read more
For EL lottery members only, the awards are another key initiative led by the EL Innovation Working Group (ELIG), which was set up to inspire, connect and engage the EL community in innovation. The aw......Read more
The Induction Module, aimed at new entrants in the lottery world (up to 3 years experience), allowed for an extensive introduction to the sector and an insight into the many complex activities. Over t......Read more
From left to right: Kerstin Kosanke, Managing Director, Lotto Brandenburg, Alexandru-Mircea Croitoru, General Manager, Loteria Romania, Bekir Yunus Uçar, General Director, Turkish National Lottery Administration & Gábor Czepek, CEO, Hungarian National Lottery...Read more
Brett Henning Brett Henning, Co-founder and Director at Sortition Foundation analysed the results of the elections, looking closely at the rise in European populism. In the past months and years,......Read more
IGT recently released its 12th annual IGT Sustainability Report, “Ahead of the Game,” an externally audited document that validates IGT’s sustainability activities and data. The report highligh......Read more
The global lottery industry faces new challenges from changing consumer and retail behaviours. Along with regulations and policy decisions, these changes place competitive and margin pressure on lotte......Read more
The Black Swan with keynote speaker: Mr. Nassim Nicholas Taleb International bestselling author Nassim Nicholas Taleb focused his keynote presentation on the Black Swan, his book which looks at th......Read more
As it was stated during the 10th EL Congress in the CEO Panel discussion by Maria Stergiou, Group Chief Sales and Operations Officer of INTRALOT, all the above technological trends are creating sever......Read more
Kerstin Kosanke, Managing Director of Land Brandenburg Lotto GmbH After finishing her law studies in Potsdam, Ms. Kosanke worked for 15 years as an independent lawyer with a focus on tax law and man......Read more
Honoured in his new role Alexandru-Mircea Croitoru as General Manager, he will continue to work on the implementation of projects that will drive the development of the lottery. The Romanian Lottery is one of the oldest institutions in the country, established in 1906 in order to improve the health system, especially in rural areas....Read more
Gábor Czepek, CEO, Hungarian National Lottery Szerencsejáték Zrt. is one of Hungary’s largest, dynamically developing state-owned enterprises: What were the most pressing tasks in this initial......Read more
Following a career in journalism, Bekir Yunus Uçar spent over 20 years in public service. He worked in several roles at Türk Telekom before joining the Turkish National Lottery Administration. He was appointed General Director by the Minister of Treasury and Finance....Read more
Hansjörg Höltkemeier, EL President & Jannie Haek, CEO of the National Lottery Belgium open the Trade Show at the 10th EL Congress in Antwerp ‘‘The Success of Chance’’ was the theme for......Read more