Why non-gaming is the growth engine casinos can’t afford to ignore
In today’s evolving leisure landscape, casinos can no longer rely solely on the roulette wheel or blackjack table to attract and retain guests. The modern casino customer is changing — and so is their idea of entertainment. While traditional gaming remains a core pillar of casino operations, forward-thinking operators are increasingly investing in non-gaming experiences that appeal to a broader, more diverse audience.
With U.S. commercial gaming revenue reaching a record $71.92 billion in 2024, the industry's growth potential is evident. But capturing that growth requires adapting to shifting consumer preferences, particularly among younger demographics who view entertainment through a fundamentally different lens than previous generations.
As Caesars Entertainment put it in their 2023 Annual Report:
“Operators have been focused on expanding their non-gaming offerings, including upgrades to hotel rooms, new food and beverage offerings, and new entertainment offerings.”
This isn’t just a passing trend — it’s a strategic strategic response to changing consumer preferences and market dynamics that are reshaping the entire hospitality and entertainment sector. And one that includes high-energy, social-first concepts like private karaoke rooms.
Non-gaming entertainment: the new revenue driver
The traditional casino model, centered primarily around gaming, is proving insufficient to meet the expectations of modern consumers. Today's casino visitors, particularly those from younger demographics, view casinos as comprehensive entertainment destinations rather than purely gambling venues. They're seeking immersive experiences that combine multiple forms of entertainment, social interaction, and memorable moments that extend far beyond the gaming floor.
Modern casino success increasingly depends on diversified entertainment offerings beyond traditional gambling. According to the 2024 Casino Non-Gaming Insights Report:
- 70% of casino-goers say non-gaming offerings are more important when they visit with family and friends
- 83.9% of millennials said non-gaming activities significantly impacted their decision-making process for a local casino
This shift demands more than just upgraded slot machines — it requires intentional investments in entertainment that resonate with today’s broader, experience-driven audience. Modern casino guests aren’t just coming to gamble; they’re looking for immersive, social, and shareable moments that keep them on-site longer and bring them back more often.
Here’s what the new generation of casino-goers increasingly expects:
- Hotel and room upgrades
- Instagrammable, high-concept dining venues
- Celebrity-chef restaurants and mixology bars
- Immersive live shows and interactive performances
- Luxury wellness offerings, including spas and fitness studios
- Participatory experiences like private karaoke rooms, VR arenas, and boutique bowling alleys
What’s driving this shift?
There are three major forces at play:
1. Changing demographics
Millennials and Gen Z are quickly becoming the dominant consumer groups in travel, leisure, and entertainment. But unlike previous generations, they aren’t as invested in traditional in-person gambling. In fact, several studies show that younger guests are more likely to engage with social, skill-based, or experiential entertainment than slots or table games.
Casinos looking to court this next generation of guests are adding attractions that blend entertainment with interactivity — karaoke being a standout example.
2. Diversification of revenue
Non-gaming revenue has become a crucial part of the profitability equation. It cushions the business against gaming fluctuations and opens up new markets.
According to the American Gaming Association’s 2023 State of the States report, non-gaming revenue accounted for 17.4% of total commercial casino revenue across the U.S. in 2022. However, in destination markets like the Las Vegas Strip, that figure climbs significantly — with non-gaming amenities often generating more than half of total resort revenue.
This includes everything from hotel stays and dining to nightlife, retail, and increasingly popular entertainment concepts like karaoke lounges, immersive games, mini-golf, and themed experiences. These offerings not only appeal to new demographics — including Gen Z and younger millennials — but also help casinos remain resilient and competitive in a shifting entertainment landscape.
3. Social media and shareability
Experiences that are visually striking, fun, and group-oriented drive organic marketing. Karaoke rooms — especially those with modern design and user-friendly technology — generate exactly the kind of content people want to post. A private room with neon lights, curated playlists, and a group of friends belting out ‘80s hits? That’s digital gold.
In other words, the right entertainment concepts don’t just keep guests on property — they help promote it too.
Understanding the Gen Z challenge
Generation Z presents both the greatest opportunity and the biggest challenge for casino operators. This demographic, born between 1997 and 2012, has grown up in a digital-first world where entertainment is personalized, social, and interactive. With 62% of Americans having gambled in the last 12 months, there's clear market engagement, but unlike previous generations who might have been drawn to casinos primarily for gambling, Gen Z visitors are looking for experiences that offer:
- Social connection - Activities that bring friends together in meaningful ways
- Entertainment value - Experiences that are genuinely fun and engaging
- Instagram-worthy moments - Shareable content that enhances their social media presence
- Interactive participation - Hands-on activities rather than passive observation
Research consistently shows that younger consumers are less interested in traditional casino games and more drawn to experiential entertainment. This shift in preferences has prompted casino operators to rethink their entertainment offerings and explore new ways to create engaging, multi-faceted experiences.
Modern entertainment expectations
Today's consumers expect entertainment experiences that seamlessly integrate technology with social interaction while creating memorable, shareable moments. With mobile devices accounting for 70% of online gambling revenue by 2024, it's clear that modern entertainment must be accessible, intuitive, and designed for social media integration.
What modern guests demand:
- Social connectivity - Activities that bring people together and encourage group participation
- Technology integration - High-quality audio-visual systems with user-friendly interfaces
- Shareability - Built-in social sharing capabilities that turn guests into brand ambassadors
- Personalization - Customization options for themes, music, and difficulty levels
- Multi-purpose value - Experiences that attract non-gamblers while providing alternatives for casino guests
The most successful casino entertainment expansions focus on social activities that encourage group participation and create memorable experiences. These offerings deliver multiple revenue benefits: they attract non-gamblers, provide alternatives for casino guests, and drive extended stays with increased spending. Interactive experiences naturally encourage social sharing, turning guests into brand ambassadors, while group activities create opportunities for high-value corporate events and private parties that provide predictable revenue streams.
The competitive advantage of entertainment diversification
Entertainment diversification creates multiple advantages that strengthen casino operations while positioning operators ahead of competitors. As more casinos recognize this importance, early adopters gain significant strategic benefits across revenue, operations, and market positioning.
‘’Non-gaming activities create huge opportunities, even in locations known for their casinos. For example, Formula One has a $1.2B impact on Las Vegas.’’
Revenue & operational benefits:
- Multiple income streams reduce dependence on gaming revenue alone
- Extended facility utilization maximizes space usage throughout different hours
- Higher per-visit spending as guests engage with multiple offerings
- Predictable event revenue from group bookings and private parties
- Peak hour optimization balances facility usage across different time periods
- Compliance flexibility helps navigate evolving gambling regulations
Market positioning advantages:
- Unique differentiation in crowded markets where gaming offerings are often similar
- Broader demographic appeal attracts visitors who might otherwise avoid casinos
- Enhanced customer loyalty through diverse engagement opportunities and emotional connections
- Premium pricing opportunities for exclusive or high-quality entertainment experiences
- Strategic partnerships with entertainment brands and local businesses
- Stronger word-of-mouth marketing from memorable entertainment experiences
Diversifying entertainment also helps casinos stay attractive amid tightening gaming regulations. Strong non-gaming offerings ensure resilience and set venues apart as go-to entertainment destinations.
Private karaoke rooms: a strategic asset
Among all the emerging entertainment formats, private karaoke rooms have one major advantage: they’re already proven to work in nightlife, hospitality, and retail entertainment. From Tokyo to Las Vegas, the karaoke experience has evolved from a cheesy sideshow into a premium, tech-driven offering — one that combines social fun with high revenue potential.
Here’s why karaoke rooms make strategic sense for casinos:
- High ROI per square foot: Karaoke rooms require relatively small footprints compared to large clubs or performance venues, yet they drive strong per-room earnings through hourly bookings, drinks, and food service.
- Modular and scalable: Start with 2–3 rooms or integrate them into a larger entertainment wing. The modular nature of karaoke makes it easy to test, optimize, and expand. Private rooms command premium pricing and encourage longer stays, directly supporting the casino's non-gaming revenue strategy.
- Low operational complexity: Many modern systems such as Singa Business are designed for seamless entertainment management. These systems require minimal staffing, as guests can easily browse, queue, and control songs from tablets or their own smartphones. Venue operators benefit from remote system management, streamlined music licensing, and automatic updates — all of which reduce overhead while delivering a premium and customizable self-service experience to guests.
- Broad demographic appeal: Everyone from Gen Z to Boomers loves karaoke — from bachelorette parties and team-building groups to couples and conference guests. It’s flexible, accessible, and instantly familiar. Group events ranging from corporate outings to bachelorette parties might prefer their own room, making private karaoke rooms ideal for capturing group bookings and events.
- Cross-sell opportunities: Karaoke has proven to increase the average spend on food and beverages by approximately 35%, making it particularly valuable for casino operations that rely heavily on ancillary revenue streams. Venues hosting karaoke nights 2-4 times a month reported even higher spending increases of 42%, suggesting that regular karaoke programming can drive substantial revenue growth.
The data strongly supports private karaoke rooms as a strategic entertainment investment for casinos, offering measurable ROI improvements, enhanced customer spending, and alignment with growing market demand for private group entertainment experiences.
According to LaneTerralever, non-gaming revenue on the Las Vegas Strip jumped 135.1% from 2021 to 2022, reaching 70% of total casino income. Karaoke rooms directly support this shift with a predictable, high-margin revenue model.
A 2023 study by Aalto University also found that karaoke-equipped venues saw a 12.23 percentage point increase in Return on Assets (ROA) compared to control venues.
If the goal is to draw in a younger, more social crowd while maximizing every square foot of the resort, karaoke is a smart, flexible, and culturally relevant play.
The future of the casino is experiential
The trend toward entertainment diversification shows no signs of slowing. With the global casino gaming market projected to grow by $43.3 billion from 2024-2028, driven by increased customer spending, casinos that proactively adapt their entertainment offerings will be best positioned to capture this growth.
Successful casino entertainment strategies focus on creating immersive, social experiences that appeal to diverse demographics while complementing existing gaming and hospitality offerings. The key is selecting entertainment options that align with brand identity, target demographics, and operational capabilities.
For casino operators considering entertainment expansion, the question isn't whether to diversify — it's how to do so strategically and effectively. The casinos that successfully navigate this transition will be those that view entertainment diversification not as an add-on to gaming, but as an integral part of creating compelling, modern entertainment destinations.
Curious how karaoke can fit into your casino’s entertainment strategy?
🎰 Check out how casinos are already winning with Singa: Read the full article here.
Singa Business: a smart bet on entertainment ROI
As casinos expand their entertainment mix, few options offer the same blend of guest appeal and operational efficiency as karaoke. With Singa Business, transforming an underused space into a high-margin, high-engagement experience is easier than ever.
Singa’s turnkey karaoke solution is built for venues that value performance. It offers:
- A massive, fully licensed song library spanning all genres and languages
- A sleek, modern interface your guests will love — no training needed
- Custom branding tools to keep the experience on-brand
- Remote management features that reduce staffing needs and simplify operations
Whether integrated into VIP lounges, private rooms, or shared entertainment zones, Singa makes karaoke a plug-and-play revenue stream that keeps guests on-site longer — and spending more.