Casino Gamblers’ Spending Prognosis Expected to Bump by 3.5 Percent Through 2020
Posted on: December 14, 2016, 03:00h.
Last updated on: December 14, 2016, 01:34h.
Casino consumer spending is ready for takeoff. According to a study titled “Gambling: United States” conducted by Freedonia Focus Reports, an Ohio-based market analytics firm, gambling will grow in the United States at an annual rate of 3.5 percent through 2020.
Due to increased consumer spending, domestic casinos should see their revenues and bottom lines bounce upwards 2.9 percent during the same period, if Freedonia’s projections come true. It’s promising news for gambling companies and industry operatives who might be concerned that the US has become oversaturated with casinos.
Freedonia points to an increasingly permissible gaming landscape in numerous states, as well as casino patrons having more disposable income due to a resurging economy.
“Casino hotels are expected to see above-average growth, as many of these establishments offer gambling as part of a diversified entertainment strategy,” the report states. “Efforts to offer the Las Vegas casino experience closer to home will also boost revenues.”
Bearer of Good News
There are only a dozen states remaining that don’t have either commercial or tribal gaming. That’s why some are understandably worried that there are simply too many slot machines and table games in the US.
But directly on the heels of a national recession, the casino players that know best are making substantial investments. Steve Wynn is building a $2.1 billion resort in Boston. MGM Resorts recently opened the $1.4 billion National Harbor outside of Washington, DC, and is working on a $950 million facility in Springfield, Massachusetts.
Two of the most well-known and respected gaming companies aren’t scared of competition, and along with Freedonia, another market research firm supports the notion that there’s more money up for grabs for casinos.
Spectrum Gaming Group, a consultancy company in New Jersey that analyzes gambling markets, says in its 13th annual list of gaming trends that casinos will adequately adapt to a changing environment.
“States will attempt to overcome stagnating gaming receipts by proposing new forms of, or locations for, gaming such as retail gaming, satellite casinos, and slots at airports,” Spectrum predicts. “More casinos in Las Vegas and Atlantic City will stage eSports events and contests, while Atlantic City will attempt to reposition itself as an eSports hub.”
Casino revenue has stabilized on the Las Vegas Strip, after falling from $6.8 billion in 2006 to $5.7 billion in 2010. Total gross gaming receipts came in at $6.3 billion in both 2014 and 2015, but will eclipse $6.4 billion this year.
Many believe eSports is a key area that Vegas needs to tap into. The emerging world of competitive video gaming was a major talking point at the Global Gaming Expo this fall. ESports is an area highly popular arena with the millennial, a demographic that hasn’t seemed to keen on playing games of pure chance common on casino floors.
For now, the older generations are providing a rebound to overall revenues in Vegas. Paired with the prospect of bringing new customers to casinos with eSports, gaming companies remain optimistic in Nevada and throughout the country.
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