According to Technavio, a leading global tech research and advisory company, U.S. casino gambling has the potential to grow into a $93 billion dollar market by the year 2020. The report covers the growth of four years, between 2016-2020, that includes analysis and forecasts of the different markets and regions. Faizan Akthar, lead market research analyst at Technavio stated,
Many casinos are adopting alternate methods to increase their customer base and expand their business in the US. For example, casinos are collaborating with prominent luxury hotels to offer entertainment options. Slot machines are often placed at restaurants, bars, and other attractions to reach out to potential customer.
With the country getting back from a recession has helped, as well as the fact that casinos can legally market themselves, which has helped drive up gambling tourism.
Driving Factors for Growth
There are other factors that have helped in the growth of the casino market, including online gambling, economic wealth, and even the transportation infrastructure.
Online Gambling will be Huge
The online gambling market has been expanding rapidly despite the fact that it was only legalized in Nevada, New Jersey, and Delaware in 2013. It has grown by 212% by 2015, which is a strong indication of what will happen when other US states legalize and license the online casinos, and that is what they predict will happen by 2020.
In New Jersey, this segment has continuously grown, while the brick-and-mortar locations struggle. It grew 21.2%, $148.88 million in 2015, compared to the $122.88 million in 2014; consequently, its revenue in January rose to $14.6 million, a 26.5% increase from the same month last year.
Economic Wealth through Taxes and Jobs
Casinos are big money, not only for themselves but for the states that house them. They bring in large contributions to the state in the form of taxes, as well as a way of generating new jobs. Last year they created half a million jobs and paid over $13 billion in taxes. The average tax percentage is 25% for most casinos, with a few exceptions where some states will make deals to get a fixed amount of tax revenue during a period of time.
Easy Access is Key
With the improved transportation infrastructure, the casino market can grow more rapidly. Having a good road plan, or even an airport that has a high capacity is what really helps. Las Vegas is the perfect example, as their airport can get over 20 million visitors each year, and their road system has access to Southern California and Arizona, bringing in locals, as well as out of state visitors.
Most casinos, as they plan to build, they make it a project to work with the host city/state in order to improve access, which is one incentive many have of approving their construction.
Land-Based Casino also Expanding
It isn’t only the online gambling segment that wants to grow, as we can see how in certain areas casinos owners and operators are trying to expand into different areas. As Atlantic City struggles, they have already created a proposal to expand into other areas of the state. Las Vegas and their major operators have also been expanding to other states. U.S. casinos have an overall economic impact of $240 billion, and that number will continue to grow.
