Small boats can maneuver and easily change course. Ocean liners take longer to make a turn in the middle of the ocean.
The same may be said of casinos. It’s easier for smaller, nimbler casinos to embrace technology such as mobile phone apps than it is for the big dogs. But in the case of apps, the bigger corporations are not that far behind.
Smartphones are ubiquitous, especially among Gen Xers and Millennials. To tap that market, the gaming industry must address what among younger potential customers amounts to another appendage, even if information rather than blood vessels connect it to its user.
Justin Cohen, who says the technology for casino apps has existed for a decade, believes the tipping point, or quantum leap, or whatever you want to call a sudden change in the status quo may be breaking, and the pioneers are some of the smaller, newer casinos.
The digital marketing maven has lived in Las Vegas for 18 years and is intimately familiar with the gaming industry. “Because I’ve been here all along, we’ve worked with pretty much everyone in gaming,” he told GGB News in an exclusive interview last week.
Cohen started a digital advertising agency, Internet Marketing Inc., in 2009; it was recently acquired and rebranded as REQ. Whatever its name over the years, the company has consistently been in the Top 100 advertising companies in the nation. Today Cohen is executive vice president for REQ.
He notes that while apps on smartphones are ubiquitous, “their use is not ubiquitous.” Many people download apps they don’t use. “They might download it but there needs to be a reason and a driving force for them to use it,” he said.
Ten years ago, Cohen wrote a piece that said the industry needed to stop focusing on apps and instead give patrons digital tools that would allow their experience to be personalized.
Now, he believes, the industry is entering a phase where casino apps will be able to do that. They have the technology to locate patrons within the casino and give them reasons to want the app: such a real time discounts at the casino gift shop or deals at a casino restaurant.
So, instead of casino app focusing on the gaming factor of the business, they should focus on the entertainment factor. “In the destination world we need to learn how people are using apps,” he said.
One of REQ’s clients is the $440 million Hard Rock Fire Mountain in Sacramento, which opened October 30 and is managed for the Estom Yumeka Maidu Tribe of the Enterprise Rancheria by Hard Rock.
“They are rolling out an app soon with the primary focus to get players their offers as quickly as possible in real time,” said Cohen. “It’s starting to happen in regional and local casinos. Some are trying to be tech focused. They can be more nimble than Caesars or MGM. There is a goal to having an app that is valuable to more than just your players.” In other words, extending value to users of other amenities.
“Our casinos in Las Vegas don’t make a majority of their profits from gaming,” said Cohen. “Our regionals will have to evolve in that direction. Destination markets, such as Florida, are starting to evolve to where the majority of money is not coming from gaming.”
Recently, Southern California’s Agua Caliente casinos in Palm Springs and Rancho Mirage unveiled a smartphone app that allows players to use their loyalty cards wirelessly through Bluetooth tracking of slot play as the guest moves through the casino floor. It also offers information on dining and entertainment and gives push notifications with special offers.
On the flip side, Cohen also works with the big gaming companies, such as Eldorado, Penn National and MGM. The big gaming conglomerates, which have been absorbed (quite literally in some cases) through mergers, “haven’t been able to make a major headway with a major website,” said Cohen. “In between mergers and property changes, there has been no opportunity for any of those companies to create a world class online presence for their collection.”
The major casino companies could profit from the example of hospitality giants such as Marriott and Starwood that recently merged. “They have made it so easy through either of their apps to book any of their hotels” he said, pointing out that Marriott-Starwood has far more properties than anyone in gaming.
MGM has taken a step in this direction with keyless entry to rooms through the app. Its myVegas app allows players trade points from online gameplay for comps at MGM properties.
Cohen’s conversations with digital and marketing people at MGM lead him to believe that in 2020, they will make a big push toward a more player friendly app.
“It’s about real-life notification, saving direct mail. The real value is in real time push notifications. It tends to be the case that people will allow notifications from their apps. People want the deal when they are walking through the lobby,” he said.
“We are at the tipping point because there is real value to be had at the places where people go frequently,” he said. Red Rock Casino Resort & Spa and Boyd Gaming in Las Vegas are the largest local casinos to use apps, but he says, Penn National and El Dorado realize there is a lot of value to engage with their apps with players, other customers and visitors.
“The way they are thinking about sports betting is the bench mark for what casinos are investing in apps,” said Cohen. The investment that has been made in sports betting apps is the path that should be taken to add value to all players and customers. “It hasn’t been treated that way, the same way it was done with sports betting. We haven’t given it great technology. It hasn’t been a priority,” he said.
But it’s on the verge of becoming a priority, “with some customers focused on gaming while other customers are focused on things besides gaming,” said Cohen. Such as being informed about deals at one of the casino’s outlet stores.
“In the future, when a guest leaves an event at Fire Mountain, they’ll get an alert on their app: Fire Mountain has a Rock Shop full of Hard Rock gear. The notification might direct you there for an exclusive merchandise offer or to the Hard Rock Cafe for a dessert deal,” or information on where to get the latest ‘craft’ cocktail or where there are no lines, said Cohen.
It’s an act of personalization that will be used to differentiate between the different gaming companies. “We’ve only got a few gaming companies left in 2020. How are they going to differentiate? They all spend millions a year on Google and advertising, it’s not that far from spending it on app technology.”
He added, “Whether you are talking about Gen. Z, or the Millennials, we need to interact with them how they want to be interacted with. If we start to think of it as a way to drive business, then we start to make money and it’s not just a marketing expense.”
