When you step inside the Luxor or Mohegan Sun, you’re greeted by bright lights and blaring sounds. The pulsating atmosphere is meant to distract you from the fact that you’re spending money, often blindly and without paying attention to how much you’ve lost or how many rounds of drinks you’ve had. There’s no clock in the casino, because management wants you to lose track of time and keep pressing your luck.
Gambling is a common pastime in America, and although it can be addictive for some, most people who walk into a casino feel it’s perfectly OK to throw hundreds or thousands of dollars away based on the roll of the dice, spin of the wheel, or draw of the cards. The reason is the sunk cost fallacy, a psychological principle that says you shouldn’t stop spending money after you’ve already invested in something.
Casinos are highly competitive businesses. Like a hit movie or hot consumer product, a new casino can quickly make money, but only until someone comes along and does it better. To keep their profits high, casinos are constantly tweaking their business model and offering promotions to lure in customers.
Aside from gaming, casinos are also known for their lavish hotel offerings, cutting-edge technology, and luxurious event spaces. To attract and keep a large audience, it’s essential that casino marketers understand what makes their venue unique to their target market. Demographics are helpful, but they’re not enough.