Casinos are struggling to attract Gen Z customers due to their outdated image reminiscent of traditional gambling establishments.

The latest endeavor for casino operators: Transform their image away from traditional casinos.

Recent constructions, including a project by New York Mets owner Steve Cohen, emphasize outdoor areas and premium amenities. Existing gaming venues are being redesigned to incorporate natural light, high-end eateries, and communal spaces like bowling alleys.

These new attractions aim to dispel the conventional, dim, and smoke-rich associations of local casinos. They are particularly appealing to a generation of newly legalized gamblers accustomed to placing bets effortlessly from the comfort of their homes through clicks and swipes.

Despite Gen Z’s higher likelihood to gamble compared to their Gen X parents and baby boomer grandparents, they tend to shy away from physical casinos and sportsbooks, as indicated by a 2025 survey from TransUnion. Instead, they favor digital betting options.

Online sportsbooks have rapidly increased in popularity. According to a survey by the Siena Research Institute, half of men aged 18 to 49 in the United States hold accounts with platforms like DraftKings Inc. or FanDuel, not to mention those betting through prediction markets such as Kalshi or Polymarket.

A gathering place

This shift has prompted casinos, especially those in smaller and mid-sized markets, to join the “experience” movement. “It must offer more than what you can access on your device,” remarked Jennifer Weissman, chief marketing officer at Penn Entertainment Inc., which operates casinos nationwide. “Younger audiences seek a more social and community-focused experience when they step outside their homes.”

The company invested $360 million to revitalize an old riverboat as the Hollywood Casino and Hotel Aurora, located about 35 miles west of Chicago. The sportsbook has been designed to serve as a “local gathering spot.” If the new celebrity chef Giada De Laurentiis appeals too much to the traditional crowd, there’s also a food hall offering street-style tacos and spicy chicken sandwiches. Local artists have painted the murals adorning the walls, and the first comedian on the fall lineup is occasional Fox News guest Ben Bankas.

Other operators are abandoning the “grimy and smoky” aura in favor of a more polished appearance with amenities beyond the gaming floor, according to Jordan Bender, a gaming equities research analyst at Citizens. These entertainment options serve as “mouse traps”—incentives for customers to spend more, whether they are gambling or not.

This approach is fundamentally traditional. For years, casinos have utilized building designs to encourage spending, whether by eliminating clocks and windows to disorient gamblers about time or allowing smoking to discourage patrons from taking breaks outside. Moreover, big-name entertainment has proven beneficial for casinos since Elvis performed at the International in 1969.

Dopamine rush

The notable change now lies with the consumer. For instance, when Gen Zers visit Las Vegas, they are less inclined to gamble and more likely to enjoy shows compared to older generations, as reported in a 2025 study commissioned by the city’s convention and visitors authority.

“It’s not about ‘Let’s go gambling,’” stated Nathan Peak, president of HBG Design, which has worked on numerous major casino renovations across the US since 2020. “It’s more about, ‘What can we do tonight to have a great time?’”

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Lakin McLaughlin, 28, shared that she visits the Hard Rock casino in Bristol, Virginia, about once a year when she catches up with her best friend because it’s “one of the only activities in” the small town.

They spend time together, enjoy cocktails, and as the evening progresses, McLaughlin might find herself putting a couple of $20 bills into a slot machine — but no more than that. While older patrons sit “zoned out” at the machines for extended periods, she mentioned that her peers are less driven to gamble.

“We have so many different activities that provide that dopamine rush in our generation, that I don’t think pursuing that specific feeling is particularly appealing,” she explained.

Increased concerts, decreased smoking

Historically, the gaming floor accounted for approximately 60% of a regional casino property, according to HBG. Currently, it may only represent around 40% — or even less.

At Metropolitan Park, Cohen’s proposed Hard Rock casino and entertainment complex adjacent to Citi Field in Queens will see the gaming area constitute merely 10% of the property. The design materials showcased on the project’s website highlight 25 acres (10 hectares) of public park land and athletic fields, modern buildings with floor-to-ceiling windows, a live music venue, and a food hall featuring local vendors.

Gregg Pasquarelli, who played a pivotal role in the project’s design team at SHoP Architects, expressed that the aim was to create “an authentic sports and entertainment district, rather than a casino complex situated in a parking lot.” He noted that visitors might first come for a concert or dinner and then decide to try their luck at the roulette table afterward.

Smoke-Free Environment

A number of venues are transitioning towards Vegas-style resort renovations, integrating luxury wellness features. Last year, the Gun Lake Casino Resort in western Michigan unveiled a spa, pools, a swim-up bar, and a 16-story hotel. A new atrium allows natural light to cascade into the lobby.

Moreover, gamblers can breathe easier: Many casinos have either banned smoking indoors or drastically reduced their smoking sections in recent years. Some of these changes were prompted by state regulations, while others were influenced by pandemic-related mask mandates that fostered expectations for smoke-free indoor spaces.

For Penn, non-gaming amenities like food and hotel accommodations have increasingly contributed to the company’s revenue over recent years, as shown in regulatory filings.

This week, the company announced intentions to move its New Orleans riverboat casino to a land-based location, a $195 million development that will incorporate an existing hotel while adding a sportsbook and several dining options.

With the rise of online platforms, younger individuals are increasingly becoming interested in gambling, Weissman noted. This means the company must reevaluate who its primary customers are and who they will be in the future.

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