Casino Revenue Growth Rate
- Casino Revenue Growth Rate 2019
- Casino Revenue Statistics
- Casino Revenue Growth Rate Calculator
- Casino Revenue Growth Rate Formula
LONDON--(BUSINESS WIRE)--Technavio’s latest market research report predicts the casino gaming market in the US to reach revenues worth USD 93 billion by 2020, posting a moderate growth rate over the next four years.
Simultaneously, younger casino-goers are ditching traditional games and looking for new, more social types of entertainment. Owners and operators who haven’t adapted by finding their niches in the market and employing a Revenue Strategy to better attract and retain gamers are suffering. But there’s still time. The home of Atlantic City has seen casinos close as its casino revenue has dropped from $5.2 million in 2006 to $2.5 million in 2015. New Jersey legalized online gambling in 2013 after the.
In this report, Technavio covers the present scenario and growth prospects of the casino gaming market in the USfor 2016-2020. This market research report also includes up to date analysis and forecast for various market segments and all geographical regions.
“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,” says Technavio’s lead market research analyst for media and entertainmentsector, Faizan Akthar.
“The tourism industry in the country has recovered since the end of the economic recession, growing at a CAGR of over 7% until 2015. The US is one of the few countries that allow advertisements for casinos, thus encouraging local level marketing by casinos. This strategy has increased the number of tourists interested in gambling in the country,” adds Faizan.
Some of the other driving forces behind the growth of the casino gaming market in the US are expansion of online gambling, immense contribution to national economy, and advanced transportation infrastructure in the US.
Expansion of online gambling
Online gambling was not legal in the US until the states of Nevada, New Jersey, and Delaware legalized it in 2013. Virtual online casinos provide more protection to user transactions than real casinos offer because they offer access after multiple verification procedures. This segment grew by almost 212% in terms of revenue in 2015, indicating a trend that is set to make online gambling the future of the casino market in the US. The possibility of exponential growth in this segment is expected to gain further traction with many other states in the US considering legalization of online gambling in the next four years.
Immense contribution to national economy
The casino industry in the US helps the economy by providing substantial employment opportunities. In 2015, the US casino market generated half a million jobs and more than USD13 billion in tax revenues. Casinos are taxed at 25% whereas the tax for an average American citizen is 10%. This trend is encouraging the US government to legalize casinos across the country.
Advanced transportation infrastructure in the US
One of the primary factors influencing the growth of the casino market in the US is its transportation infrastructure. For instance, Las Vegas has an airport capacity of more than 20 million visitors annually. The state's roadways are also well planned and connect the city to Southern California and Arizona. The intercity transport system is also very efficient, and features monorails and bus and shuttle services which further conveniences travelers interested in gambling.
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Indian gaming revenue in Arizona grew by 3 percent in 2012, even though no new facilities came online and the number of games in the state actually declined that year.
The numbers were included in a recent report by Casino City Press, which said revenue at Arizona’s 22 tribal casinos grew by about $50 million, from almost $1.75 billion in 2011 to $1.8 billion in 2012.
That was a faster growth rate than the average for the nation, where tribal casinos saw a 2 percent increase in revenues, rising $500 million to $28.1 billion in 2012. Arizona was sixth among states for overall revenues in tribal casinos and 14th for the rate of growth, the report said.
Calls to the Arizona Indian Gaming Association and to several tribes with gaming facilitates in the state were not returned. But other experts pointed to several possible factors behind the increase.
Bob Ellsworth, an instructor for gaming management at the University of Nevada, Reno, said it could be that “the head count … either that has increased or … how much each player spends – puts at risk – has gone up. Or it’s a combination of both.”
Ellsworth said those changes could have led to the decrease in the number of games: From 2011 to 2012, the number of machines in Arizona tribal casinos fell by 1.4 percent, and the number of table games fell nearly 5 percent.
Rick Medina, assistant director at Arizona Department of Gaming, said the 15 tribes that manage casinos in the state may have cut less-popular games to focus on those where players were risking more money.
“Every square foot of their establishment is … important to them,” Medina said. “Casinos don’t want to have games on the floor that people aren’t playing.”
Ellsworth said the number of people playing one machine or table game will affect revenue, since the number of wins per unit per day tends to drive up the amount of money players bet at that unit.
Casinos are also replacing some machines with “multidenomination machines” that let players change the amount of money they play, Ellsworth said.
“For example, a video poker machine could be played as a 5-cent machine, a quarter machine or a dollar machine,” he said. “The casino can offer multiple-denomination games with less machines on the floor.”
Casino Revenue Growth Rate 2019
Alan Meister, an economist with Nathan Associates Inc. and author of the Casino City Press report, said casinos might also be able to increase revenue while cutting the number of games by offering more multiplayer than single-player games.
Medina said confidentiality agreements between the state and the casinos prohibit him from releasing details on exact reasons behind the higher revenue.
Whatever the reason, more money for the casinos means more money for the state. Medina said a casino pays the state 1 to 8 percent of its revenue, on a scale based on the facility’s revenue in a given year.
In 2012, tribal casinos contributed $84.9 million toward the state budget, according to the governor’s Office of Strategic Planning and Budgeting.
Casino Revenue Statistics
Casino Revenue Growth Rate Calculator
Casino Revenue Growth Rate Formula
Medina said the tribes plan to announce next week that this summer they expect to reach $1 billion in contributions to the state budget, stretching back to the approval of tribal casinos in 2003.