Demographics
Harrah's Entertainment, Inc., is one of the major corporations operating commercial casinos in the United
FIGURE 3.1
States. In September 2003 the company presented results of a survey conducted for it by Roper ASW and NFO WorldGroup, Inc., in Harrah's Survey 2003: Profile of the American Casino Gambler. The survey was twofold: 2,000 American adults were interviewed face-to-face, and a survey questionnaire was mailed to a panel of 100,000 adults (of which 64,753 responded).
The survey results indicated that 51.2 million people gambled at a casino in 2002—about 26% of the American adult population age twenty-one and above. The typical casino gambler is a forty-seven-year-old female from a household with an above-average income. According to the 2004 edition of the Harrah's survey, 19% of casino gamblers had a college degree and an additional 8% had education beyond a four-year degree, while 28% had some college credits, and 45% had not attended college. This compares very closely with education levels on a national basis. (See Figure 3.2.)
According to Harrah's Survey '04: Profile of the American Casino Gambler, there were 310 million casino visits in 2003, with the average gambler visiting a casino six times during the year. Adults age fifty-one to sixty-five, who often have more free time and available spending money than younger adults, made up the largest group of casino gamblers in 2004—29% of the total. (See Table 3.1.)
The 2004 survey found that 32% of Americans with annual household incomes in excess of $95,000 were
FIGURE 3.2
casino gamblers. (See Table 3.2.) Participation in casino gambling dropped with decreasing income, with only 20% of Americans with incomes less than $35,000 per year participating. Casino gamblers were more likely to be residents of western states (35%) than of the north-central (27%), northeast (27%), or southern (18%) regions of the country. The states whose residents accounted for the largest shares of all casino trips in 2003 were California (19%), Nevada (6%), Illinois (5%), and New York (5%). States accounting for the smallest percentages of all gambling trips were Idaho, New Hampshire, North Dakota, Oklahoma, South Carolina, South Dakota, and West Virginia, each of which accounted for less than 1% of all gambling trips. (See Table 3.3.)
Slot machines were the most popular casino game among casino gamblers in 2004. (See Table 3.4.) A large majority, 75% of casino gamblers, indicated that they play slot machines and other electronic gaming devices. The quarter slot machine was the most popular among this category. Table games, such as blackjack/21, roulette, and craps, were less popular, drawing only 13% of casino gamblers.
In the 2004 Harrah's survey, female casino gamblers showed a marked preference for electronic gaming, with 81% of those surveyed indicating that it was their favorite type of game, compared to 66% for men. Nearly half (48%) of women preferred machines in the $.25 to $.50 per play range. Men were more likely to participate in table games (20%) than were women (8%). Game preference also varied by age, with younger gamblers showing a preference for table games and senior citizens preferring electronic games. (See Table 3.5.)
TABLE 3.1
| Casino participation rate by age, 2004 | |
| SOURCE: "Age Differences in Casino Participation," in Harrah's Survey '04: Profile of the American Casino Gambler, Harrah's Operating Company, Inc., October 2004, http://www.harrahs.com/about_us/survey/2004_Survey.pdf (accessed November 15, 2004). Used with permission. | |
| 21–35 years old | 24% |
| 36–50 | 24% |
| 51–65 | 29% |
| 66 and above | 26% |
TABLE 3.2
| Casino participation rate by income, 2004 | |
| SOURCE: "Income Differences in Casino Participation," in Harrah's Survey '04: Profile of the American Casino Gambler, Harrah's Operating Company, Inc., October 2004, http://www.harrahs.com/about_us/survey/2004_Survey.pdf (accessed November 15, 2004). Used with permission. | |
| Under $35,000 | 20% |
| $35,001–$55,000 | 26% |
| $55,001–$75,000 | 29% |
| $75,001–$95,000 | 30% |
| Over $95,000 | 32% |
In March 2002 Gemini Research released a report on the gambling habits of Nevada citizens. Gambling and Problem Gambling in Nevada was prepared for the Nevada Department of Human Resources. Respondents who acknowledged participation in casino gambling at least once a month during the previous year were asked which casino games they most liked to play. The largest portion (50%) selected slot machines. Card games, such as blackjack and poker, were the favorite of 30% of respondents. All other games were far less popular. Bingo and keno were the favorite games of only 6% of the gamblers. Table games (such as roulette and craps) and gambling on sporting/racing events each garnered only 5%.
Motivation—How Do Casinos Persuade People to Gamble?
Casino gambling is different from other forms of gambling, such as lotteries and Internet gambling, because of its social aspect. Players are either directly interacting with others, as in craps or poker, or surrounded by other people as they play the slot machines. A casino floor usually contains many tables at which small groups play various games. Excited players shout out encouragement. The atmosphere is boisterous and partylike. Alcoholic drinks are easily accessible and delivered directly to gamblers by waiters and waitresses circulating throughout the casino. Nonalcoholic drinks and snacks are sometimes provided free of charge. The casino atmosphere is designed around noise, light, and excitement.
TABLE 3.3
| State profiles of commercial casino participation, 2004 | |||||||
| State | 2003 U.S. cencus population (21+) | 2003 Casino participation rate | 2003 Number of casino gamblers | 2003 Average trip frequency (per year) | 2003 Number of gambling trip | 2003 Shares of U.S. gambling trips | Top casino destination (in alphabetical order) |
| Alabama | 3,225,152 | 20% | 645,000 | 4.9 | 3,161,000 | 1% | Gulf Coast MS |
| Mississippi Indian | |||||||
| Tunica, MS | |||||||
| Arizona | 3,907,855 | 41% | 1,602,000 | 5.9 | 9,453,000 | 3% | Arizona Indian |
| Las Vegas/Laughlin | |||||||
| Arkansas | 1,956,085 | 22% | 430,000 | 4.8 | 2,066,000 | 1% | Shreveport/Bossier City, LA |
| Tunica, MS | |||||||
| California | 24,394,117 | 38% | 9,270,000 | 5.7 | 52,838,000 | 19% | Las Vegas |
| N. California Indian | |||||||
| S. California Indian | |||||||
| Colorado | 3,284,975 | 34% | 1,117,000 | 6 | 6,701,000 | 2% | Colorado |
| Las Vegas | |||||||
| Connecticut | 2,468,888 | 40% | 988,000 | 5.7 | 5,629,000 | 2% | Atlantic City |
| Connecticut Indian | |||||||
| Las Vegas | |||||||
| Delaware | 582,288 | 28% | 163,000 | 9.2 | 1,500,000 | 1% | Atlantic City |
| Delaware | |||||||
| Las Vegas | |||||||
| Florida | 12,572,881 | 17% | 2,137,000 | 4.2 | 8,978,000 | 3% | Cruise ships |
| Florida Indian | |||||||
| Gulf Coast, MS | |||||||
| Las Vegas | |||||||
| Georgia | 6,133,858 | 13% | 797,000 | 2.6 | 2,073,000 | 1% | Cherokee, NC |
| Gulf Coast | |||||||
| Las Vegas | |||||||
| Idaho | 929,197 | 25% | 232,000 | 3 | 697,000 | <1% | Idaho Indian |
| Las Vegas | |||||||
| Other Nevada | |||||||
| Illinois | 8,865,588 | 28% | 2,482,000 | 5.9 | 14,646,000 | 5% | Chicago area |
| Las Vegas | |||||||
| St. Louis | |||||||
| Indiana | 4,364,554 | 22% | 960,000 | 4.3 | 4,129,000 | 1% | Chicago area |
| Las Vegas | |||||||
| Southern IL/IN | |||||||
| Iowa | 2,101,363 | 26% | 546,000 | 6.5 | 3,551,000 | 1% | Iowa Indian |
| Other Iowa | |||||||
| riverboats | |||||||
| Quad Cities/Council Bluffs | |||||||
| Kansas | 1,906,819 | 26% | 496,000 | 5.2 | 2,578,000 | 1% | Kansas City, MO |
| Kansas Indian | |||||||
| Las Vegas | |||||||
| Kentucky | 2,976,801 | 19% | 566,000 | 4 | 2,262,000 | 1% | Southern IL/IN |
| Tunica, MS | |||||||
| Louisiana | 3,118,119 | 39% | 1,216,000 | 8.6 | 10,458,000 | 4% | Gulf Coast, MS |
| Lake Charles | |||||||
| New Orleans | |||||||
| Shreveport/Bossier City | |||||||
| Maine | 958,705 | 12% | 115,000 | small | small | small | small |
| sample | sample | sample | sample | ||||
| Maryland | 3,878,464 | 17% | 659,000 | 4.1 | 2,703,000 | 1% | Atlantic City |
| Delaware | |||||||
| Massachusetts | 4,648,548 | 31% | 1,441,000 | 4.1 | 5,908,000 | 2% | Connecticut Indian |
| Rhode Island | |||||||
| Michigan | 7,092,971 | 32% | 2,270,000 | 5.4 | 12,257,000 | 4% | Detroit/Windsor |
| Michigan Indian | |||||||
| Minnesota | 3,568,202 | 34% | 1,213,000 | 6.6 | 8,007,000 | 3% | Las Vegas |
| Minnesota Indian | |||||||
| Mississippi | 2,002,356 | 35% | 701,000 | 8.9 | 6,237,000 | 2% | Gulf Coast, MS |
| Tunica MS | |||||||
According to a poll conducted for the American Gaming Association in 2002 by Peter D. Hart Research Associates, Inc. and the Luntz Research Companies, 92% of survey respondents go casino gambling in the company of their spouses, families, and friends or as part of organized groups. Casino gambling was considered "a fun night out" by 82% of those asked.
| State | 2003 U.S. cencus population (21+) | 2003 Casino participation rate | 2003 Number of casino gamblers | 2003 Average trip frequency (per year) | 2003 Number of gambling trip | 2003 Shares of U.S. gambling trips | Top casino destination (in alphabetical order) |
| Missouri | 4,043,835 | 30% | 1,213,000 | 7.8 | 9,463,000 | 3% | Kansas City, MO |
| St. Louis | |||||||
| Montana | 654,204 | 18% | 118,000 | small | small | small | small |
| sample | sample | sample | sample | ||||
| Nebraska | 1,216,955 | 35% | 426,000 | 8.1 | 3,450,000 | 1% | Quad Cities/Council Bluffs |
| South Dakota | |||||||
| Indian | |||||||
| Nevada | 1,622,669 | 40% | 649,000 | 24.3 | 15,772,000 | 6% | Las Vegas |
| Reno | |||||||
| New Hampshire | 916,239 | 20% | 183,000 | 4.4 | 806,000 | <1% | Atlantic City |
| Connecticut Indian | |||||||
| New Jersey | 6,170,667 | 36% | 2,221,000 | 5.6 | 12,440,000 | 4% | Atlantic City |
| Las Vegas | |||||||
| New Mexico | 1,282,715 | 32% | 410,000 | 7.1 | 2,914,000 | 1% | Las Vegas |
| New Mexico Indian | |||||||
| New York | 13,708,258 | 27% | 3,701,000 | 3.9 | 14,435,000 | 5% | Atlantic City |
| Connecticut Indian | |||||||
| North Carolina | 6,090,949 | 8% | 487,000 | 2.9 | 1,413,000 | 1% | Atlantic City |
| Cherokee, NC | |||||||
| North Dakota | 452,569 | 31% | 140,000 | 4.3 | 603,000 | <1% | Minnesota Indian |
| North Dakota Indian | |||||||
| Ohio | 8,121,037 | 19% | 1,543,000 | 3 | 4,629,000 | 2% | Detroit/Windsor |
| Las Vegas | |||||||
| Southern IL/IN | |||||||
| West Virginia | |||||||
| Oklahoma | 2,476,698 | 16% | 396,000 | 3.4 | 1,347,000 | <1% | Las Vegas |
| Oklahoma Indian | |||||||
| Tunica, MS | |||||||
| Oregon | 2,552,233 | 28% | 715,000 | 4.3 | 3,073,000 | 1% | Las Vegas |
| Oregon Indian | |||||||
| Pennsylvania | 8,983,452 | 21% | 1,887,000 | 4.1 | 7,735,000 | 3% | Atlantic City |
| West Virginia | |||||||
| Rhode Island | 764,255 | 36% | 275,000 | 6.2 | 1,706,000 | 1% | Connecticut Indian |
| Rhode Island | |||||||
| South Carolina | 2,967,842 | 8% | 237,000 | 3.1 | 736,000 | <1% | Cherokee, NC |
| Las Vegas | |||||||
| South Dakota | 533,666 | 32% | 171,000 | 5 | 854,000 | <1% | North Dakota Indian |
| South Dakota | |||||||
| Indian | |||||||
| Tennessee | 4,232,699 | 20% | 847,000 | 5.1 | 4,317,000 | 2% | Cherokee, NC |
| Southern IL/IN | |||||||
| Tunica, MS | |||||||
| Texas | 14,967,435 | 21% | 3,212,000 | 3.9 | 12,526,000 | 4% | Lake Charles, LA |
| Las Vegas | |||||||
| Shreveport/Bossier City, LA | |||||||
| Utah | 1,488,279 | 27% | 402,000 | 3.6 | 1,447,000 | 1% | Las Vegas |
| Other Nevada | |||||||
| Vermont | 449,402 | 9% | 40,000 | small | small | small | small |
| sample | sample | sample | sample | ||||
| Virginia | 5,291,982 | 12% | 650,000 | 3 | 1,949,000 | 1% | Atlantic City |
| Las Vegas | |||||||
| West Virginia | |||||||
| Washington | 4,343,446 | 28% | 1,216,000 | 5.5 | 6,689,000 | 2% | Las Vegas |
| Washington Indian | |||||||
| West Virginia | 1,347,674 | 7% | 92,000 | 3.6 | 331,000 | <1% | Las Vegas |
| West Virginia | |||||||
| Wisconsin | 3,889,572 | 29% | 1,128,000 | 6.2 | 6,994,000 | 2% | Las Vegas |
| Wisconsin Indian | |||||||
| Wyoming | 353,136 | 17% | 60,000 | small | small | small | small |
| sample | sample | sample | sample |
The casinos go to great lengths to lure gamblers into their facilities and keep them gambling as long and as happily as possible. Large companies invest millions of dollars in determining what colors, sounds, and scents are most appealing to patrons.
The legend that casinos pump in oxygen to keep their customers alert and peppy is untrue. Such a practice would be an extreme fire hazard. However, many casinos do furnish their gambling halls with bright and sometimes gaudy floor and wall coverings because these have been
| SOURCE: "State Profiles," in Harrah's Survey '04: Profile of the American Casino Gambler, Harrah's Operating Company, Inc., October 2004, http://www.harrahs.com/about_us/survey/2004_Survey.pdf (accessed November 15, 2004). Used with permission. | ||||||
| DMA | 2003 U.S. census population (21+) | 2003 Casino participation rate | 2003 Number of casino gamblers | 2003 Average trip frequence (per year) | 2003 Number of gambling trips | Top casino destination (in alphabetical order) |
| Atlanta | 3,955,496 | 14% | 560,000 | 2.7 | 1,511,000 | Cherokee, NC |
| Cruise ships | ||||||
| Gulf Coast, MS | ||||||
| Las Vegas | ||||||
| New Orleans | ||||||
| Tunica, MS | ||||||
| Baltimore | 2,005,768 | 18% | 361,000 | 3.9 | 1,408,000 | Atlantic City |
| Delaware | ||||||
| Boston | 4,476,819 | 30% | 1,351,000 | 3.9 | 5,267,000 | Connecticut Indian |
| Buffalo | 1,181,766 | 30% | 355,000 | 4.9 | 1,742,000 | Canada |
| Las Vegas | ||||||
| New York Indian | ||||||
| Cincinnati | 1,569,703 | 26% | 402,000 | 4.9 | 1,972,000 | Chicago Area |
| Las Vegas | ||||||
| Southern IL/IN | ||||||
| Cleveland | 2,795,707 | 23% | 643,000 | 2.7 | 1,737,000 | Detroit/Windsor |
| Las Vegas | ||||||
| West Virginia | ||||||
| Columbus, OH | 1,500,351 | 13% | 193,000 | 2.7 | 522,000 | Detroit/Windsor |
| Las Vegas | ||||||
| Southern IL/IN | ||||||
| Little Rock/Pine Bluff | 980,824 | 22% | 218,000 | 5.3 | 1,157,000 | Tunica, MS |
| Louisville | 1,133,306 | 27% | 307,000 | 3.8 | 1,168,000 | Las Vegas |
| Southern IL/IN | ||||||
| Los Angeles | 11,585,293 | 40% | 4,606,000 | 4.4 | 20,265,000 | Las Vegas |
| Laughlin | ||||||
| So. California | ||||||
| Indian | ||||||
| Miami/Ft. Lauderdale | 3,020,024 | 19% | 569,000 | 3.3 | 1,877,000 | Cruise ships |
| Florida Indian | ||||||
| Las Vegas | ||||||
| Minneapolis/St. Paul | 2,992,281 | 37% | 1,112,000 | 6.9 | 7,675,000 | Las Vegas |
| Minnesota Indian | ||||||
| Wisconsin Indian | ||||||
| Mobile/Pensacola | 920,072 | 35% | 320,000 | 4.7 | 1,505,000 | Gulf Coast, MS |
| New York City | 14,715,137 | 33% | 4,850,000 | 4.4 | 21,338,000 | Atlantic City |
| Connecticut Indian | ||||||
shown to have a stimulating and cheering effect on people. Red is extremely popular as a decorating color in casinos for the same reason and because it is thought to make people lose track of time. There are no clocks on casino walls either. Most casinos have no windows or mirrors in order to minimize distractions and keep the focus on the gambling action.
According to "The Tech Of: A Casino," a TechTV program broadcast in June 2002, casinos use a variety of tricks to attract gamblers. Slot machines and gaming tables are arranged in a mazelike fashion so that wandering patrons are continuously enticed by more gambling options. Slot machines are designed by computers to be appealing to the senses of sight, sound, and touch. Bells, lights, whistles, and the "cling clang" noise of dropping coins during a payout are all part of the sensory experience. The machine noises are electronically tuned to the musical key of C to be pleasing to the ear and fit into the ambient noise of the rest of the casino. Humans are attracted to bright lights, so, more than 15,000 miles of neon tubing are used to light the casinos along the Las Vegas Strip.
In addition to stimulating atmospheres, casinos also focus on customer service. They provide perks designed to encourage gamblers to spend more and to reward those who do. Most casinos offer "comps," which is short for complimentaries, or free items. During the 1970s, Las Vegas casinos were famous for their deeply discounted travel packages, cheap buffets, and free show tickets. The strategy at that time was to maximize the volume of people coming and staying at the casino. Gambling revenue was driven by filling hotel rooms and the casino floor with as many people as possible.
Today, casinos are more choosy. They prefer to concentrate their investments on gamblers who spend much more than average—the so-called "high rollers" or "big spenders." Such people receive VIP treatment. They
TABLE 3.4
| Casino games played most often, 2004 | |
| SOURCE: "Games Played Most Often by Americans," in Harrah's Survey '04: Profile of the American Casino Gambler, Harrah's Operating Company, Inc., October 2004, http://www.harrahs.com/about_us/survey/2004_Survey.pdf (accessed November 15, 2004). Used with permission. | |
| Slots/video poker (net) | 75% |
| $ .01 – .02 | 1% |
| $ .05 – .10 | 18% |
| $ .25 – .50 | 45% |
| $ 1.00 – 4.00 | 9% |
| $ 5.00+ | 1% |
| Table games (net) | 13% |
| Blackjack/21 | 9% |
| Roulette | 2% |
| Craps | 2% |
| Other | 3% |
| Don't know | 8% |
often gamble in special rooms, separate from the main casino floor, where the stakes (amount bet) can be in the thousands of dollars. Casinos make much of their profit from these high-stakes gamblers. Therefore, the high rollers receive comps worth a great deal of money during their visits, such as free luxury suites and lavish personal attention.
Less expensive comps are available to smaller spenders. Most casinos offer clubs that are similar to airline
TABLE 3.5
| Casino games played most often by age group, 2004 | ||||
| 21–35 | 36–50 | 51–65 | 66+ | |
| SOURCE: "Age and Games Played Most Often," in Harrah's Survey '04: Profile of the American Casino Gambler, Harrah's Entertainment, Inc., October 2004, http://www.harrahs.com/about_us/survey/2004_Survey.pdf (accessed November 15, 2004) | ||||
| Slots/video poker (net) | 69% | 73% | 77% | 79% |
| $ .01 – .02 | 1% | 1% | 2% | 1% |
| $ .05 – .10 | 19% | 18% | 18% | 19% |
| $ .25 – .50 | 41% | 45% | 47% | 49% |
| $ 1.00 – 4.00 | 8% | 9% | 10% | 8% |
| $ 5.00+ | 1% | 1% | 1% | 1% |
| Table games (net) | 18% | 15% | 11% | 8% |
| Blackjack/21 | 12% | 11% | 7% | 5% |
| Roulette | 2% | 2% | 1% | 1% |
| Craps | 3% | 2% | 2% | 2% |
| Other | 5% | 5% | 5% | 5% |
| Don't know | 8% | 7% | 7% | 8% |
frequent-flyer programs. Gamblers who join receive a card that can be swiped electronically before they play a game. Casino computers track their usage and spending habits and tally up "points" that can be exchanged for free or discounted meals, drinks, or shows, or coupons for free slot play. The comp programs also serve as a valuable marketing tool for the casinos. They develop a patron database that can be used for mail advertising and to track trends in game preference and spending.
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