Revenue in the casino industry has been inconsistent and unstable due to the impacts of the Covid-19 pandemic. The Global Casinos and Online Gambling Industry market research report announced that in August of 2021, revenue levels had fallen throughout 2020. The website https://top-canadiancasinos.com/real-money-casinos/ and any other gambling facilities that organize and provide wagering and other betting services, including slots machines in addition to hospitality services. The decrease in revenue went down to $202.54 million in 2020 from $265.93 million in 2020, as Statista reports. The market research further shows expected revenue for the year 2021 remained at a middle level between the past two years at $230.86 million, according to Statista.
But, the Gambling Global Market Report 2021 reported that the industry is expected to reach $516 billion worldwide by 2021 and an estimated $674.7 billion by 2025. Here are some of the contributing factors to the expected growth in revenue in the casino industry:
- Rise of esports betting;
- Changing from Las Vegas to Macau as the largest casino market;
- Impacts of legalization of the casino and gambling industry;
- Growth in technology.
Rise of Esports Betting
European Business News, an online news website, reports that crypto casinos and games directly relate to the improved revenue levels. The changing gaming atmosphere in online casinos, especially with “branded online slots games” instead of regular and traditional games, has significantly impacted gambling. Branding has added a customization factor where players can identify with specific themes and thus, increase subscriptions and gaming potential. At the same time, gambling means and habits have also changed and become dynamic, adapting to the changing technologies. In the past, individuals could only play on desktops or visit a physical brick-and-mortar casino to enjoy a few gambling games. However, you can access several gambling options such as esports and sports betting, casino games in totality ranging from table to slots, and live casinos using your mobile phone!
The casino industry game collection and genre are dynamic. The dynamism resulted in e-sports gaming after social distancing and other strict Covid-19 rules came into law enforcement. Since regular sports were no longer practical with the pandemic, the esports industry took over, the fear of infection rates rising; the esports industry took over. PR News, a market research website, reported expected revenues of over $8 billion in e-sports wagers based on the $1 billion earned in 2019. In the United States alone, the revenue is expected to rise to $560 million representing an industry growth rate of 7%.
Changing from Las Vegas to Macau as the Largest Casino Market
Market reports indicate that the overall casino industry worldwide profits are expected to rise to $159.3 billion by 2027. The casino industry contributing the most in terms of revenue to these general profits is the Asia Pacific region at a rate of 4.5% in the coming six years. America will contribute $68.9 billion while Europe and Canada will bring in 3.3% and 3% consecutively. The drop in contributions can be associated with the changes in casino markets over the past few years since 2006, according to Statista.
The Research website reports the continuous rise in commercial gambling centers and increased investment in Macau, China, where legal gambling surpasses Las Vegas. In addition, the reports indicate a thriving tourism industry in Macau. For example, fortune, an online news website, reports that “Tables at Macau’s 41 casinos generated six times the revenue of the 144 casinos in Las Vegas, racking up $36 billion in revenue in 2019.”
As a result, gambling is the main economic activity in the region contributing $54 billion to the city’s GDP, 7% of employment in Macau, which is half a million of the residents of more and tax revenue of 80% going to the governing authorities.
Impacts of Legalization of the Casino and Gambling Industry
“Legal gambling status” is what many online and land-based casinos look forward to in a bid to increase revenue generated. The commercial aspect of the casino aspect has undergone “Tremendous change” in the last few decades, resulting from the continuous legalization in various parts of the world. Therefore, new gambling markets are rising, and revenue is generated periodically. By mid-2020, the revenue generated had been increased to $227 billion, accounting for only online casinos as brick and mortar casinos seem to have fallen a little in revenue.
For instance, flexibility in gambling laws in some states in America has diminished operations by physical gambling sites casinos. However, it has led to increased mobile-based gambling activities, far more reach, and revenue collection. The study resulting in these facts was done in the State of Nevada. In Canada, the gambling laws are more flexible and friendlier to gamers than in the United States. The country classifies gambling as a “Recreational activity,” and players do not pay taxes from winnings.
The law has given leeway to gamblers, leading to increased gambling and revenue generated. In Europe, specific countries are tackling gambling laws independently, with some having strict enforcement of gambling rules and other countries relaxing their rules a little. However, countries such as Italy, Spain, and Germany have legalized online gambling to allow the gambling industry to grow. In the UK, younger people gamble in two ways: playing the latest casino games or as spectators viewing others. These elements have added to the revenue generated using casinos in the country with various specific themes, for example, the Wizard of Oz theme.
Growth in Technology
Technology changes have had an extensive impact on gambling in online casinos. The accessibility of a smartwatch, phone, or tablet has improved gaming online by inducing convenience. Statista reports that over 6 billion people across the globe own or have access to smartphone devices. A total of 8.9% of the entire world’s population owns a smartphone. Thus, online casinos have taken advantage of this fact and optimized the online mobile sites for use on any smart device. For instance, you will find an online mobile application for a specific website. Individuals only need to download the app and install it.
The following process is simplified by creating a mobile casino account, and gaming commences. Plus, there are many mobile-enabled online banking options for any interested parties. Players can make payments or cash out winnings conveniently. Plus, intelligent devices are portable due to their compact nature, and thus, gaming can occur anywhere and anytime.
Casino trends keep changing, and with each change, the impacts on expected revenues can be either negative or positive. In the past few years, the results have been inconsistent as the economy across the globe has been unstable. However, we expect the economy to stabilize shortly.