Listening to the voice of the player and identifying shifts in behaviors and preferences is crucial to the development of new products and technologies at WMS, and we invite you to join us as we collectively work to understand today’s active gamblers. We are pleased to share with CEM readers a series of columns that will provide you with a summary of the 2011 WMS Active Gambler Profile™, the third edition of our widely recognized, in-depth report that samples more than 3,800 active adult gamblers in the U.S., Canada and Mexico. Over the next several months, we will uncover contemporary insights into active gamblers’ emerging lifestyles and preferences.
In last month’s column, we reviewed key insights into the general gambling behaviors of today’s active gamblers (players who visited a casino at least once in the last 12 months), their view of the casino experience and their in-casino gaming preferences. This month, we will review active gamblers’ views regarding online gambling—including whether it should be legalized in the U.S.—and their preferences when gambling online and playing casual online games.
Thanks to recent events in the U.S. including legal actions undertaken by the Department of Justice against several websites and individuals, online gambling has become a very timely topic for casino operators, the gaming industry and even U.S. consumers. Even though online gambling is a timely topic, the findings of the 2011 WMS Active Gambler Profile make it clear that player opinion on this subject remains difficult to gauge. This is particularly evident in the widely different viewpoints regarding both the need for and the potential legalization of online gambling as expressed by active gamblers in the most recent survey.
To properly set the stage for a discussion of online gambling and gaming, the 2011 WMS Active Gambler Profile first explores the use by U.S. active gamblers of technology and the Internet. According to the 2011 survey, Avid gamblers (players with an annual gaming value of $2,501 or more) are more comfortable with technology than Frequents (players with an annual gaming value of $500-$2,500) and Casuals (players with annual gaming value of less than $500).
U.S. active gamblers spend, on average, approximately 20 hours per week on the Internet. Seventy two percent of Avids indicate that “the computer in my household is an essential part of my life,” compared to 66 percent for Frequents and 64 percent for Casuals. Additionally, 27 percent of Avids use the Internet at home to play casino-type games, compared to 22 percent of Frequents and 12 percent of Casuals. Use of the Internet and home computer for play of video games is comparable between the three groups at between 16 percent and 19 percent.
The pace of change in the online gambling space—from a technological, regulatory and player preference standpoint—is rapidly accelerating, making it imperative that all parties are aligned and prepared for the future. The growing acceptance of and reliance on technology in particular is a key factor in providing the industry with opportunities that previously were unexplored.
U.S. gamblers remain divided on the subject of legalization. Focus group participants in favor of online gambling cited issues such as freedom of choice—“if people want to do it, I think they ought to be able to”—and potential economic benefits as reasons for bringing it to the U.S., while those opposed were largely concerned about the security of their identity and information—“there are so many ways you could hack into it and have access to other people’s information.”
By player group, Avids and Frequents (43 percent and 42 percent, respectively) are far more likely to be in favor of the legalization of online gambling, compared to 26 percent of Casuals. Similarly, but to a far lesser extent, Avids and Frequents (18 percent and 15 percent, respectively) are more likely to have visited online gambling sites than Casuals (7 percent). Although more positive views of online gaming are emerging, online casino gambling is not legal in the U.S. today.
For those who have participated in online gambling, 68 percent of U.S. active gamblers said they played poker compared to 46 percent for slots and 27 percent for table games. Avids, however, are more likely to have played all three game types (online poker, slots and table games), compared to Casuals and Frequents.
Generational gaps provide interesting insights to consider. While poker remains the top game among all demographic groups—Millennials (ages 18-30), Xers (ages 31-44), Boomers (ages 45-63) and Matures (ages 64-plus)—Xers are far more likely to have played slots online (69 percent) than all other groups (47 percent for Matures, 41 percent for Boomers and 28 percent for Millennials).
When asked why they gamble online, the top two reasons cited by U.S. active gamblers are “comfort of my home/convenience” (67 percent, 73 percent and 68 percent of Avids, Frequents and Casuals, respectively) and the opportunity to “gamble whenever and wherever I want” (61 percent, 60 percent and 62 percent, respectively). For those who choose to not gamble online, the player groups are in agreement that they “prefer the physical atmosphere of a real casino” (66 percent, 67 percent and 53 percent, respectively) and “are concerned about protecting my personal information” (56 percent, 61 percent and 54 percent, respectively).
As they spend their 20 hours online per week, U.S. active gamblers are also devoting a portion of that time to visiting sites that offer a wide array of casual gaming. Such sites are experiencing sharp increases in traffic—even as casual gaming on mobile platforms gains more fans, thanks to the proliferation of smartphones.
As expected, the younger demographic groups tend to play casual online games most frequently (11 percent and 14 percent of Millennials and Xers, respectively, play at least once a day while 14 percent and 16 percent of these two groups play almost every day, respectively). While Matures trail behind in terms of playing every day, 31 percent do play casual online games at a minimum of at least once a week. Asked to explain the attraction of casual online games, the focus groups found that players use them to “pass time,” for “fun,” to “relax,” because they are “free entertainment” and because they “don’t have to leave the house.”
What do U.S. active gamblers play when they navigate to casual online gaming sites? While Avids are more likely than Casuals to play arcade and sports games (21 percent vs. 15 percent), they are less likely than both Frequents and Casuals to play card and board games (62 percent vs. 70 percent vs. 73 percent, respectively). At the same time, Casuals are less likely than Frequents and Avids to play casino-type games (50 percent vs. 71 percent vs. 75 percent, respectively) but more likely to play word games (56 percent vs. 49 percent vs. 44 percent, respectively).
At WMS, we are prepared to work as a partner with our casino operator customers and support their online gambling initiatives including “play for fun” online solutions that enable casinos to prepare today for the regulation of online gaming tomorrow. We have a strong understanding of today’s active gamblers, their game preferences and their increasing comfort with the latest technology and casino entertainment innovations.
JackpotParty.com, the online gambling site launched by WMS in November 2010 in the United Kingdom, is proof that our technology, e-commerce platform and gaming content can attract strong play levels and form the foundation for a business-to-business partnership with our casino operator customers worldwide. WMS will offer our partners a full range of software and service capabilities needed to white label the online gaming experience, and this offering represents a proven online solution from a trusted no-risk compliance option.
For more insights on the 2011 WMS Active Gambler Profile, visit our dedicated website www.wms.com/cemagp and return next month as we will continue to explore the active gambler. We’re staying in touch and listening to the voice of the player because helping you to do the same is our most critical mission. Are you prepared?
Product and service names mentioned in this article are trademarks of WMS.