Tino Magnatta, host of Casino Update, held an Interview on LinkedIn with Marc Oppenheimer, CMO of Parx Casino. Oppenheimer shared his perspectives on land-based casinos and online casinos going into 2025. He appears to be cautiously optimistic about the state of the casino industry for the year to come.
Economic recovery boosting customer confidence
Pennsylvania is showing great numbers with online gambling and sports betting which are both growing. However, the land-based casinos in PA have been struggling a little. Other markets like Atlantic City also didn’t see a peak this summer.
However, the latter months of 2024 have seen some positive economic trends such as a reduction in inflation rates and stabilizing of the stock market. Consumer prices are still high, but people are feeling more comfortable about spending discretionary income again. An online casino counts on consistent consumer spending on casino games. Consumers are feeling better about where economic policy is going and will therefore tend to spend more.
Adapting marketing strategies
Parx Casino’s marketing strategies are evolving. They are taking consumer behavior and individual spending patterns into account. Strategies must stay adaptive to keep up with changes in spending habits. For example, there are more people streaming sports and playing online casino games than ever before. This offers them convenience and flexibility on how and when to place their bets. They can even use their mobile phones to play casino games and place sports bets.
Integrating AI into marketing is changing how casinos analyze data and personalize the customer experience. AI-powered chatbots and messaging apps are providing instant solutions and personalized experiences. This helps casinos build more authentic relationships with players, so they can gain their loyalty and retain them.
Data privacy is under increasing scrutiny, and casinos must ensure they adopt robust data privacy practices. Players are increasingly unwilling to play online without ensuring their safety.
Labor market challenges and opportunities
According to Oppenheimer, a focus on the labor market will be essential in the years to come. Unemployment rates may be low, but finding qualified employees at management and executive levels is often challenging.
Oppenheimer said that successfully filling line-level roles and allowing for career advancement at higher levels is a sign of a healthy industry. Parx Casino adjusted its wage structure to address rising labor costs post-pandemic. However, Oppenheimer believes that moving into 2025 the casino will return to a normal raise cycle.
Emergence of skill-based games
Oppenheimer stated that there are more skill-based games in Pennsylvania than licensed slot machines. There are currently between 60,000 and 80,000 skill-based games located in venues such as convenience stores and bars across Pennsylvania. Legal battles and regulatory issues surrounding skill-based games are still not resolved.
Some operators believe skill-based games are legal. They aren’t games of chance like slot games. Others believe they fall into a gray area. These games are profitable for small businesses, and they often rely on income from them.
The problem is that they have the potential to draw lower-level gamblers away from casinos. Some regulatory clarity on this issue will be essential in the year to come. Both defenders and detractors of skilled-based games are adamant about their positions and don’t want to budge.
Cautious optimism
Various factors are driving growth in the online casino industry. There is growing acceptance of it and regulatory changes in many markets. Technological advances continue to make it more accessible and entertaining.
Marc Oppenheimer has a cautiously optimistic outlook for the casino industry in 2025. This is supported by factors such as growth in the US economy and adapting marketing strategies to take consumer behavior and spending patterns into account. As operators gear up for the year ahead, they will need a combination of labor readiness, consumer-friendliness, and clarity about regulations for growth in the casino sector.