In the casino business, we spend a lot of time working on improving revenue and profitability in our gaming operations. Usually, this means squeezing more productivity out of our staff, investing in better technology and developing new revenue streams. Of course, all of these are important. For me, though, this means making sure that every square inch of my casino floor produces as much money as possible. In my experience, this is the most overlooked aspect of operations – and often the difference between the good organizations and the great ones.
Over 75 percent of a casino’s revenue is derived from 20 percent of its gaming space, so it’s essential to optimize your casino floor. Here are the key things to keep in mind, in no particular order:
- Knowing your market. Guests in some places prefer certain games and experiences to others. Customers decide on a game within 30 seconds of their first step on the gaming floor, and up to 70 percent of your guests will never venture into less-prominent areas – so it’s critical to cater to what they want. In the New Orleans casinos I managed, Asian table games like Pai Gow and Baccarat were really popular. In contrast, Detroit casinos had a large Blackjack and Craps presence. You see a lot of poker rooms in Las Vegas. In rural places, slots and blackjack – more traditional games – tend to do well. A well-organized layout with clear sightlines and enticing games is critical to capturing their attention quickly.
- Tailored promotions. I always devote a small percentage of space to promoting the games I put on my floor. The promotions we run depend on two primary factors: 1) which games are in which spaces; and 2) the kinds of guests we want to bring into our casino. To the latter, middle-aged people and older tend to spend more money with us – so if we know they’re coming on certain days or times, we can cater to them accordingly. Or if we’re seeing more people in their 20s and 30s, we tie things to the kinds of games they enjoy because we know they’re visiting us more to be entertained than to throw around big sums of money.
- Devoting space to virtual reality and iGaming. iGaming revenue exceeded $60 billion in 2023, and projections show that number doubling by 2030. In the most successful casinos, these emerging technologies are blended seamlessly with legacy and traditional game options. Certain titles can bridge the gap between the two, and they can be used both to transition between the technologies on the floor and signal to guests that something new is ahead. The rapid adoption of iGaming and virtual reality allows us to reshape how people interact with gambling, especially among the younger generation.
- Non-gaming traffic and revenue drivers. Can you put in a restaurant that people really like? Can you attract popular entertainers? Devote space to things and experiences that will get people in the door and help them enjoy their time with you. Besides, slots or table games located near restaurants, bars or bathrooms experience 25 percent more playtime on average.
- No wasted space. Are the games and entertainment options that produce the most revenue put in the highest-traffic places on your floor? Are the items that need the most power positioned where you need them? Can you move things around based on hours of the day, day of the week, etc. to cater to certain guests when you know they will visit? And based on those traffic patterns, how do you staff your floor? These are just some of the considerations that help me determine exactly what I put where. After all, unused space can reduce revenue by at least 10 percent.
- Proximity to amenities. Half of poker players engage in other forms of gambling either during or after their poker session, so place high-energy and high-excitement games nearby to give them a convenient change of pace. If you have a popular/exclusive restaurant, tuck it away from the main entrances. If you have a hotel, you should make it so your guests have to walk a ways – and they see/engage with an array of things – before they get there. These are just some examples of how your amenities may influence how you lay out your floor.
- Sports betting. This activity increases casino visits by 25 percent, allowing casinos to bring in sports fans who may not typically visit a casino. Often once on site, they’ll engage in other gaming or non-gaming activities. As such, it’s a good idea to reserve space for a race/sportsbook.
We have all seen casinos where these considerations aren’t top of mind – and usually, not coincidentally, those places are the ones that are struggling financially relative to their competition. Don’t be one of them.
