X + Y = ROI

Investing to attract younger patrons—the coveted 20-to-30-somethings known as Generations X and Y—has brought new revenue and a whole new buzz to the casino industry.

“Pink is my favorite color.”

“All you need is love.”

Classic lines from my fraternity days? Hardly. These two phrases embody the steps taken by two legendary Las Vegas casinos to appeal to a younger demographic.

Two different casinos. Two different approaches. Yet both have successfully raised the energy level, grown the customer base and increased revenue for both gaming and retail amenities.

The repositioning of the Flamingo Las Vegas started with the “pink” tagline. Thirty thousand people pass each day through the open façade of the Flamingo; they are immediately greeted by iPod-influenced slot signage, loud music and a stripper pole in the middle of a gaming pit.

If you’re saying, “This is not my father’s casino,” you’re right.

Don Marrandino, regional president of the Flamingo and Harrah’s Las Vegas, wanted to bring back the Golden Era, when Hollywood and the Rat Pack brought swank modern design to the desert resort.

“The room remodels incorporate the latest technological advancements,” says Marrandino. “Flat-screen TVs, iPod docking stations and a surround sound system with a sub-woofer so loud, it required additional soundproofing between the rooms.”

That attitude continues with the sports book remodel, where music videos replaced sports events after hours to create an ultra-lounge atmosphere.

The sports book’s gaming tables, with strategically placed personalized TVs, are some of the most played on the property. An infusion of technology and a whole lot of attitude adds up to a heightened energy that customers are drawn to.    

For Scott Sibella, president and chief operating officer of Mirage in Las Vegas, it’s all about aligning his strong brand of Polynesian tropical with “one of the most famous brands in the world: the Beatles.”

The music and the 60s-era theme at the resort attract baby boomers as well as the young. The popular Cirque du Soleil show, The Beatles LOVE, captures the music in an unparalleled production, while the Revolution Lounge transforms the after-hours experience.

The approach is working. “Non-rated gaming has increased before and after show times,” says Sibella.

The Mirage is the first modern resort that influences resort design to this day. The brand is unmatched for class, sophistication, attentive service and customer experience. The customer base for years has been an influential, sophisticated patron, 40 to 65 years old, with high expectations for entertainment. The goal was to attract similar guests from 20 to 40 years old.

The addition of nightclubs, hip dining and an ultra-pool were key, followed by a more contemporary design approach and highly focused advertising. Print advertising for the Mirage in mainstream magazines is tame by comparison to the casino’s ads in youth-oriented magazines. The latter emphasize nightlife and the sexy side of the casino.

The result: new generations of young, fun-loving customers have been introduced to the Mirage. All it took was tweaking the brand-and a little LOVE.    

To attract a more youthful demographic, the Showboat Casino in Atlantic City, a Harrah’s property, incorporated the House of Blues brand into nightclubs, the Foundation Room and themed areas within the casino.

Jay Snowden, Showboat’s senior vice president and general manager, says the casino took less an age-group approach than a “psychographic strategy” that included nightclubs, lounges and celebrity chef-driven restaurants.

“These unique experiences increased visitation and loyalty with existing customers,” says Snowden. “We know new customers will follow.”

The advent of server-based gaming has created a more communal experience on the gaming floor. It’s another feature that draws the younger player, Snowden says.

“Playing in group environments creates shared fun and experiences. People of all ages enjoy being around younger crowds, even if it’s just to people watch.”

Technology, innovation, brand association and social interaction draw seasoned, affluent customers as well as Generations X and Y. The younger generation’s “what-I-want-when-I want-it” attitude has led to a new focus on service that benefits all customers.

The power of the non-gaming dollar is stronger than ever, so now is the time to focus marketing to promote these amenities and create a buzz within the industry. Generation X and Y desires have created a new energy that has forever changed the customer spending behavior and influenced casino design.