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Regional Casinos Shrinking Gaming Floors to Chase Non-gaming Revenue

Regional casinos are adding dining, entertainment, and outdoor amenities as online betting shifts younger customers away from casino floors
Regional casinos are adding dining, entertainment, and outdoor amenities.
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State of Play’s TL;DR

  • Casinos are creating more space for dining and entertainment.
  • Gaming is no longer the main draw.

US casino operators are devoting more space and capital to dining, entertainment, and outdoor attractions as younger gamblers increasingly favor online betting over traditional casino floors.

That shift is reshaping regional casino strategy, with operators including PENN Entertainment and Hard Rock treating gaming as one amenity among many rather than the main draw. The trend matters for the broader gambling industry because it links the rise of digital sportsbooks and online wagering habits to changes in how land-based properties are built, renovated and marketed.

PENN and Hard Rock projects show the new regional casino model

At Hollywood Casino and Hotel Aurora outside Chicago, PENN spent $360 million on a renovation that added a food hall, murals by local artists, and a sportsbook designed like a neighborhood bar, according to Propmodo.

PENN also announced a $195 million landside relocation of its New Orleans riverboat casino, with plans for a sportsbook and multiple dining concepts.

In Queens, the planned Hard Rock casino tied to Steve Cohen’s Citi Field project would dedicate just 10% of its footprint to gaming. The broader proposal includes 25 acres of public park space and a live music venue.

Architect Gregg Pasquarelli described that project’s goal as creating “an authentic sports and entertainment district.”

Elsewhere, Gun Lake Casino Resort in western Michigan added a spa, pools and a 16-story hotel last year.

Why operators are shifting space away from gaming floors

The business case is tied to how younger customers now gamble. A 2025 TransUnion survey found that Gen Z gamblers are more likely to bet than older generations but prefer online gaming to physical casinos. The same report said half of U.S. men ages 18 to 49 hold accounts with platforms such as DraftKings or FanDuel.

According to a 2025 report, Gen Z visitors in Las Vegas attend shows more often than they gamble.

Jordan Bender, a gaming analyst at Citizens, called these added amenities “mouse traps” designed to keep customers on property longer and increase spending on food, lodging, and entertainment whether or not they place wagers.

That change is also visible in casino layouts. HBG Design said gaming floors now account for 40% or less of regional casino properties, down from 60% in prior decades.

Many casino properties have eliminated or reduced indoor smoking areas, another operational shift aimed at changing the customer experience.

Based on reporting by Propmodo.

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Ian St. Clair

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Ian St. Clair is a lover of words, vocal or written. Naturally, that makes Ian a great communicator and leader. Ian is curious and driven, always looking to improve, and always welcomes a challenge. Ian is authentic, possesses high-level emotional intelligence, and knows just when to crack a joke. A University of Northern Colorado graduate, Ian is now an expert in the US online gambling field, where he's been for over 5 years. Ian also has over a decade of journalism experience covering college and professional athletics, as well as the symphony and theater. Ian's a lover of history, news, and bacon. Oh, and tacos.

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