Business

Why Casinos Are an Important Part of the Gaming Industry

Top 5 Best Casinos To Throw Your Money At
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In 2020, online gaming revenues worldwide peaked at $18 billion – and they continue to grow. While land-based casino revenue doesn’t factor into this figure, online casinos do, which makes them a particularly important part of the gaming industry.

In the US, the casino gaming market revenue in 2019 was $79.42 billion. That figure represents the revenue created by the 465 commercial and 524 tribal casinos operating throughout the US, and despite a drop in visitors in the last couple of years, physical casinos are bouncing back again.

Online gaming sites like Megaways casinos represent part of the £7.7 billion that had been contributed the UK economy in 2019, with around 17% of the UK population using online gaming sites.

All About the Money

Revenue is a crucial factor for any business, and casinos are no different.

When considering a casino, we immediately picture the Las Vegas Strip with all the accompanying glitz and glamour, but in the last couple of years they have seen a huge dip in revenue, losing billions in comparison with 2019. However, Vegas is not the biggest casino revenue generator any more – Macao in China has overtaken them, with $36 billion.

Land-based casinos, even on the Strip, are struggling to compete with the accessibility of online gaming and are finding it difficult to attract millennials into their establishments. Whether this is because millennials aren’t into gambling or they simply have other things to spend their money on, keeping the casinos open and attractive to players is something that a lot of money and research is going into.

Moving forward, brick-and-mortar casinos need to take advantage of a few things to make them more attractive to players (and increase their revenue):

  • Embrace technology, allowing for contactless payment options on the floor and at the machines
  • Use datamining software to present customers with tailored offers and incentives
  • Trade off the exclusivity and glamour associated with the big-name establishments to make visiting a casino a destination activity

Going back to the UK, according to an EY report in 2019, the betting and gaming sector was responsible for creating approximately 61,000 jobs, and indirectly responsible for creating a further 58,000. This increase in employment is a reason that is often quoted as why casinos are important to the economy. Reducing unemployment, especially in the younger generation, makes financial sense and has a beneficial effect on the income of the local and national government.

Remote and online casinos and betting are an important part of the tax revenue for the UK, with more than £3.8 billion coming from players online, whether that is those taking part in the lottery or playing slots at one of the online casinos. Betting shops, casinos, and online gaming operators have paid more tax on their profits than some other corporations.

Decentralised Casinos

There is a point to be made about the negative impact that decentralised online casinos can have on the economy and on player experience.

A decentralised online casino is based on the blockchain and offers players the opportunity to buy into games using cryptocurrency like Bitcoin or Ether. While licensed and regulated online casino operators must abide by local law and legislation, including verifying customer details and providing fraud security, the decentralised casino does not.

While this might make accessing the online casino easier in places where it is prohibited by law, it also means that players are not protected in the same way, both finances and personal details are more at risk, and the protection of players from damaging behaviours is non-existent.

Aside from this, regulated online casinos help the economy on a local, national, and even global scale – and decentralised casinos only line the pockets of the organisation that runs them.

A Global Growth

The gaming industry has been experiencing growth and has more confluence with casinos and betting than ever before.

eSports are becoming more popular to play – and to bet on, too. Sports betting has exploded since most states in the US made it legal, and now skilled players of games like Fortnite, Rocket League, or League of Legends can not only play in high-stakes tournaments, but other people can bet on the results just like they would on a soccer game or a horse race.

Internationally, the real key to casino growth has been the technological advancements that has seen an explosion in mobile gaming, and major land-based casino companies are diving right in to make the most of the trend.

Online Casinos

When the first online casino game was developed in 1994, land-based casinos would not have understood what an impact this would make on the industry.

Online casinos provide simple access to an astonishing number of games without players having to leave their house. They don’t need to get dressed or pay for peripheral things like travel and food to get the adrenaline-fuelled fun that they are looking for – instead, they can play from the comfort of their own home.

Mobile access has made this even easier, with apps and better network connections allowing players to spin the roulette wheel while they are waiting for a bus or play a hand of poker on their lunch break.

The downside to this? Revenue might increase, tax takings from the creators of these casinos might grow, but it might be responsible for the loss of jobs and the decline of casino-centric places like Las Vegas and Macao.

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About the author

Saman Iqbal

Saman is a law student. She enjoys writing about tech, politics and the world in general. She's an avid reader and writes fictional prose in her free time.







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