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Why casinos are able to attract visitors of different age groups

Shawn Bolton

Must-know: An overview of casino gaming (Part 4 of 7)

(Continued from Part 3)

Casino visitors’ demographics

The commercial casino industry plays a vital role in the overall U.S. travel and tourism industry. Roughly a quarter of the U.S. adult population visits a casino at least once a year. Casinos attract a substantial number of overseas visitors.

Today’s casinos—including Las Vegas Sands (LVS), MGM Resorts (MGM), Caesar Entertainment (CZR), and Pinnacle Entertainment (PNK)—provide top-notch entertainment experiences that go beyond gaming. Exchange-traded funds (or ETFs) like the Market Vectors Gaming (or BJK) and the Consumer Discretionary Select Sector SPDR Fund (XLY) track the leisure companies.

Modern casinos have diverse amenities. The amenities attract a variety of tourists. The tourists also visit neighboring attractions. This stimulates the local economy.

The above chart shows that young people aged between 21–35 visit casinos the most. Nearly four out of ten individuals in the age group went to a casino in 2012. However, this visitation rate is only slightly higher than respondents aged between 50–64 at 36% and those aged between 36–49 at 34%. Only a quarter of older Americans aged 65 and over visited a casino during 2012.

What’s your total household income?

The above chart shows that casino visitors have similar household incomes compared to national survey respondents. Casino visitor households make slightly more. Nearly 50% of all casino visitors’ households make more than $60,000 per year. Only 34% of households in the overall national sample have the same annual income. Household incomes for young adult casino visitors are almost in line with the broader population of casino visitors.

Casino gambling is an activity that adults aged 21 and over enjoy every day across the U.S. However, there are underlying differences. Young adult casino visitors, as a group, have distinct gambling habits that could shape casinos in the future. Also, young adult casino visitors are more likely to participate in other forms of gambling—like casual betting with friends, playing poker, or gambling on the internet.

Continue to Part 5

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