Undoubtedly, the iGaming industry has brought a whole new ball game to the casino world. More and more casino providers continue to launch new platforms, with cutting-edge technologies and an overall experience that mirrors that of a land-based casino. The prizes are great, the game selection is extensive, and the bonuses are even better. That said, what does this mean for land-based casinos?
In this section, we’re going to take a closer look at some of the statistics across the globe. If we look at the UK market, land-based casinos were surpassing the online gambling industry back in 2017.
The UK Gambling Commission reports that revenue of the gambling market increased by almost 3% to £13.82 billion between October 2015 and September 2016. The Euro 2016 contributed to some of this, considering remote betting shot up to nearly 10% to £1.7 billion and exchange betting increased by £170 million. As for online casinos, it held a staggering £2.4 billion in revenue. That said, this only represented 3% of the population. In fact, online bingo lessened to £149m and pool increased by 16%.
Moving on to 2018, the UK saw a decrease in revenue. Rank Casino, one of the country’s most popular venues, saw just a 1% rise, pre-tax took a hit by 7% and total gaming revenue fell 3% year-on-year. Similarly, the Ritz Casino suffered a few losses in 2017, after they managed to garner $11.64 in profits in 2016.
While Las Vegas, the home of the casino world experienced growth between 2009 and 2017, this all changed in 2018. The city experienced poor revenues since January values were down to 8.9% to $554.8 million, while those in the first quarter of the year fell to 6.1%. Overall, the revenue dropped by 1.9% by the end of the year. Arguably, this might be due to the continuous growth of the online gambling market, but the Nevada Gaming Control Board argued that this was due to Baccarat not being played so often.
A new emerging scene for online gambling has recently appeared in New Zealand. You can find further information about the online casino market in New Zealand through this iGaming guide: https://www.thecasinocitynz.com/
Living in the Digital Age
So, what does this mean for online casinos? Undoubtedly, online casinos are becoming more popular as the years go by. Whilst it may seem that change is evident now, huge companies like Microgaming have been striking a chord with avid online players since 1996. Ever since they launched their first ever video slots and table games, they have been completely untouchable. More advanced technologies were introduced to the scene, and eventually, players could enjoy a better gaming experience.
Whilst the online gambling scene didn’t necessarily start on good note since there were huge debates whether or not such providers tried to scam people, there has evidently been a change in tone. Although it is still prohibited in a number of countries and states, it is very much legal and regulated in countries such as the UK, some parts of the States, France, Spain, Malta, Sweden, Belgium and the Netherlands.
Mordor Intelligence reports that online casinos are expected to reach a staggering $87.75 billion in revenue by 2024 and a growth rate of 8.77% per year. That’s just four years from now, so who knows, the number might be even bigger by then. Since the European market is already well established with top companies like Ladbrokes and Paddy Power Betfair, an up and coming market like North America is expected to experience the largest growth.
The main reason for this is due to the fact that gambling is not yet legal in all states. The same applies to countries like New Zealand. Whilst some states still allow players to play online casino games at overseas platforms, casino providers are not allowed to operate from that particular state. That said, this can all change in just a few years’ time.
Perhaps, there is some truth in land-based casinos taking a hit in revenue when compared to the online gambling market. If we look at the sports industry, it is more convenient to just place your bets online rather than going through the effort of showing up to a venue.
The introduction of more online casinos is inevitable, but land-based casinos will still make their mark on the world. You’ll still find plenty of players who enjoy making a night out of their casino night. Additionally, some people enjoy a more tactile experience, were you can actually spin the reels of a slot machine and also mingle with people and the dealer. Considering their history, both the US and UK markets, they simply cannot be replaced.