With the gaming industry constantly evolving and expanding, it is crucial for casinos to break into target market segments currently untapped for growth opportunities. For many casinos, that market is the second largest demographic in the United States: the Hispanic market.
Currently, Hispanics account for 20 percent of all casino visitors and are among the fastest-growing segments in the industry. If looking at properties specifically located in high Hispanic regions, that number of players is upwards of 40-50 percent in some cases. While we know the population exists, and we know they make and spend money, just how lucrative is this market for casinos? Do they have a strong ADT? Do they have frequent trips? Are they a loyal customer base? What drives them initially, and what keeps them from moving to other properties? All relevant questions with promising answers.
Hispanic spending and gambling habits
According to Scarborough Research 2022, Hispanics spent $14.4 billion on entertainment. Hispanics over-index on experiences. This demographic values how they spend their time.
Music isn’t just a pastime; it’s a core component of the culture. Food isn’t just for something to do on Friday and Saturday nights; it’s an event where groups go and spend time together. So, does providing the right food offering and some Spanish concerts do the trick? It’s a start. Then what? How do we measure a market that doesn’t like using player cards? How do we drive additional trips if their redemption for offers is lower than in non-Hispanic and Asian markets because of tracking? Possible? Of course.
We know 48 percent of Hispanics express interest in gambling, and we know that of the Hispanics who do gamble, 45 percent go to the casino at least once a week, and 12 percent visit more than three times per week, which is in line with non-Hispanic gamblers.
Once on-site, what do Hispanic guests play? Seventy-five percent play slots, and 25 percent play table games, primarily blackjack. Females make up the majority of slot play, while Hispanic men play tables.
Preference for casino hotels
Furthermore, a significant portion of Hispanics (47 percent) are more likely to choose a hotel that has a casino attached to it. This preference highlights the importance of offering a casino experience as part of the overall entertainment package for Hispanic consumers. In fact, Hispanics are just as likely as non-Hispanics to plan a casino destination vacation, with 24 percent expressing interest in doing so.
Preferred amenities
When it comes to casino amenities, Hispanics have specific preferences. The top three appealing amenities for Hispanics are bars, clubs, and buffets. By catering to these preferences, casinos can attract and retain Hispanic customers. Casinos today make one major mistake: Having Spanish concerts and saying you reached the Hispanic market is like saying you brought one country artist and reached all English audiences. As you know, it does not. Knowing which artists bring out different Hispanic audiences matters.
When you analyze the results of your current Hispanic initiatives, you likely ask questions like, which audiences will be first-time attendees because the artist is strong?
Which loyal customers are we keeping as an amenity to offer them so we don’t lose them?
Which audiences are we getting an additional trip from?
Which genres bring more guests to slots and/or tables, which brings more alcohol and food sales?
And what are we trying to drive with each show and/or promotion we offer to this audience segment?
Do our pre- and post-formas for promotions and events outline our projected results by audience, and do those projections match results?
Hispanic strategies go beyond language ads and Spanish entertainment. The opportunity is in revenue, but it isn’t from ad strategy. It’s creating a relationship with the market as a strategy.
The Hispanic market presents a huge opportunity for Native casinos. By recognizing the unique preferences and spending habits of Hispanic consumers and blending the cultural implications that drive behavior, casinos can attract a new, loyal customer base and drive revenue growth.
The key lies in understanding the needs and preferences of this market segment and tailoring offerings to meet those needs. With the Hispanic market accounting for a significant portion of casino visitors and showing a strong interest in gambling, now is the time to tap into this lucrative market segment.
Written by Sara Mendez, MBA
Owner of Mendez Media Marketing Inc. – Hispanic Marketing and Data Strategy Company
