Do you want to know the future? Well, thanks to the Spectrum Gaming Group, you can–kind of. Actually, these are trends that are happening right now but will be important to the gaming industry’s growth in 2007. So it’s not crystal ball gazing, but reasoned analysis. From Spectrum Gaming Group:
Spectrum Gaming Group, a widely respected international gaming consultancy, has listed the 21 most important trends impacting the global casino industry in 2007.
This is the third year that Spectrum has compiled this list, which addresses ongoing changes in technology, demographics, politics and regulation to determine the most significant trends.
“Our task would be simpler if we expanded this list to 40 or more, as the casino industry grows more complex,” said Michael Pollock, Spectrum managing director. “Our disciplined approach requires us to identify the core trends, as well as those that are most likely to be meaningful over the next 12 months.”
The 2007 list includes the expanded partnership between gaming and retailing, and the expansion of the hub-and-spoke business model for casino operators.
New Jersey-based Spectrum (http://www.spectrumgaming.com) has experts stationed around the world, and tracks these and other trends in its award- winning newsletter, Gaming Industry Observer (http://www.gamingobserver.com).
The top 21 trends for 2007 are:
Acceptance of server-based gaming, and adoption of new technology in
spinning-reel slots to facilitate server-based gaming.Adding table games to slots-only markets, leading to the “Spirograph”
effect, in which neighboring markets are forced to react by expanding
their offerings.Communal gaming, in which multiple players can participate in the same
electronic game.Continued conversion of racetracks to racinos.
Continued development of luxury housing, second-homes in combination
with, or adjacent to gaming properties.Development of “hub-and-spoke” business model, with sister properties in
central, feeder markets.Evolution of gaming companies into entertainment providers.
Growing acceptance of electronic table games that meet regulatory
standards in both slots-only and full-service markets.Growing partnership between gaming, high-end retail – and the marriage
between retailing and casino loyalty programs.Growth of conventions in destination markets.
Hotel-room growth, use as marketing tool, as well as branded non-casino
hotel development in non-gaming markets.Increasing reliance by states on high-tax, franchise business model with
protected geographic areas.International Game Technology’s “Guaranteed Play” for slot customers,
which guarantees players a minimum amount of time on slot machines for a
set price.Next generation of Las Vegas casinos, creating full-service metropolitan
centers.Opening of new Asian markets.
Outsourcing of food-and-beverage, partnership with signature restaurants
Private equity firms entering the gaming industry.
Reaching younger, more diverse demographics.
Remote, handheld gaming.
Tribal operators pursuing management contracts with other tribal casinos
and expanding into state-sanctioned gaming jurisdictions.Widespread acceptance of RFID chip tracking and wager recognition in
table games.
I think that some tech stuff–improvements to player tracking and electronic table games–will be more visible to players than server-based gaming. Like I said above, all of this stuff is going on now, so don’t expect people to think that you’re the reincarnation of Nostradamus if you delphically predict that the casinos of 2007 will embrace high-end retail, residential development, and convention travel. Still, this is a nice, quick summary of where the industry is headed, so (if you are the stock market type) adjust your investments before the market moves on it.