Behavioural economics and strategic design

Lea Hogg June 4, 2024

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Behavioural economics and strategic design

Stephan Crystal, a seasoned expert in the casino industry and founder of SCCG Management, recently delivered a keynote speech at SiGMA Asia 2024. Crystal, who began his career in the heart of land-based gaming in Las Vegas and now specializes in iGaming, shared his insights on the future of casino design, particularly in emerging Asian markets.

Crystal explained the pivotal role of behavioural economics in casino design. This field of study significantly influences player engagement and is crucial for leveraging new market potentials and enhancing player satisfaction. He highlighted the emerging markets in the Philippines, Japan, and Thailand as offering vast potential for growth and innovation.

The future of casino design in Asia, according to Crystal, hinges on continuous adaptation, cultural sensitivity, and leveraging technological advancements. For instance, Mohegan Sun’s expansion in Asia, marked by the grand opening of INSPIRE, exemplifies successful behavioural economics and strategic design in South Korea’s casino market.

“Brick and mortar casinos are dear to my heart“
Stephan Crystal

Convergence of physical casinos and iGaming

Crystal discussed the convergence of physical casinos and iGaming, which enhances player engagement and builds community. This convergence is facilitated through personalized notifications, digital leaderboards, live dealer games, and achievement badges. He cited the Philippine casino industry’s rapid growth, driven by favourable government policies and strategic investments. Resorts World Manila, for example, uses data analytics to tailor rewards for different player segments, thereby increasing satisfaction and loyalty.

New opportunities in Japan and Thailand

Crystal also touched on recent legislative changes in Japan and Thailand. Japan’s recent legalization of integrated resorts (IRs) opens new opportunities for the casino industry. Behavioural economics strategies will play a key role in designing these resorts to cater to local cultural nuances, ensuring a positive impact on player engagement.

In Thailand, the House of Representatives voted to legalize casinos on 28 March, 2024, aiming to boost tourism and attract foreign investment. MGM Resorts International has expressed interest, positioning Thailand as a significant player in the regional casino industry.

Effective casino design leverages key elements to influence player behaviour. These include layout and spatial arrangement, game placement and variety, lighting and sound, and reward systems. Crystal pointed out that understanding and respecting cultural differences is crucial for designing casinos that resonate with local players.

The Asian market

In his speech, Crystal noted that every Asian nation, from the Philippines to Malaysia and Cambodia, provides something a little different for its customers. “There is differentiation in the market in Asia due to the design elements used,” he said. “When people go to a casino, they know they are going to lose money but the challenge is how to get them to spend more and have a good time while doing it.”

In Asia, digital signage is at the next level and loyalty programmes have been successfully exported from the US to Asia. “Casinos embody local customs in Asia but also connect their environment through the use of technology today,” Crystal concluded. This insightful speech underscores the importance of understanding local cultures and leveraging behavioural economics in the design of future casinos.