Casinos Missing Out On iGaming Convergence Opportunities

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Wednesday, May 11th, 2016 | Written by Shane Larson

Online gaming is becoming more and more popular as people increasingly use their smartphones, tablets and computers to access gambling websites and social media games when they’re on the go. In the U.S., online gambling for money is only legal in three states; however, there are over 1,500 regulated and licensed casinos operating across more than 40 U.S. states that are using online gaming to drive their business. The problem is that most of them are not using their platforms to the fullest because they are failing to capitalize on convergence.

That is the conclusion of an interesting article posted recently on gamblinginsider.com, and as Itsik Akiva, the author of the piece, then explains, when a gambling operator employ an interactive model primarily focused on producing profit from its social gaming products, it is beneficial to run that business separate from its land-based business. However, when the intention is to leverage the opportunities presented by its internet and brick-and-mortar business, then the operator should subsequently focus upon converging the two activities.

How Casinos Are Using Online Gaming

Currently, casinos are using online gaming on social media and websites where casino games are played without real money in two different ways:

– As a Revenue Generator. Caesars Interactive (CIE) and Churchill Downs Interactive are two examples of casino operations that are using online gaming to generate revenue. This can be done through in-app purchases and fees to play, or get perks rather than through making money from gambling losses.

– As a Marketing Tool. The majority of casinos who are involved in online gambling use websites with free casino games and daily fantasy sports betting as a way to strengthen their brand, promote their land-based casinos and bring more customers through the door.

What Is Convergence?

Convergence is a fancy term that basically means the sharing of player data between land-based casinos and online gaming platforms. While the technology exists to link up the information gathered from casinos and their hotels, restaurants and spas, and the data collected on online gaming platforms concerning player spending habits and play at casinos, the truth of the matter is that casinos rarely take advantage of the information.

How Convergence Benefits Operators

Casino operators who are ignoring convergence are missing out on the opportunity to truly benefit from the marketing potential of online gaming. With proper convergence, online play can be linked to in-casino rewards programs, so players accumulate points that they can only redeem for rewards if they visit a casino’s brick-and-mortar location. Convergence also makes it possible for casino staff to acknowledge top online players, and that recognition can work toward encouraging brand loyalty and keeping gamblers visiting the same properties again and again. Plus, with proper convergence, casino operators can sell online gaming to gamblers, hotel guests and even restaurant patrons by inviting them to download the gaming app when it’s discovered that they don’t already have an account.

Why Convergence Is Largely Ignored

It’s not because of a lack of technology that casinos are overlooking the opportunities presented by convergence. While there would be some costs associated with converging systems, they would likely pay for themselves quickly. The problem lies rather in a lack of vision with operators unable to understand just why convergence is beneficial. In some cases, the blame doesn’t even fall on the operators themselves but on customer relationship management companies that fail to recommend convergence.

Conclusion

In conclusion, casinos must go to greater lengths to ensure that their customers are offered a joined-up experience between their land-based product and online gambling offerings. A good starting point is by implementing a professional integration of its technology, and then ensuring that the data it acquires is properly used to gain insights about the habits of their customers, and to use the data to then leverage its gambling products. As Itsik Akiva, an online gaming expert with more than ten years experience in the industry, then concludes in his informative piece:

“This can be achieved by adjusting the organizational structure, embedding the new vertical across all customer-facing functions, and providing training and ensuring staff are knowledgeable about the online offering, and thus better equipped and motivated to promote it to their guests.”