We hate spam and only email you when we have something worth sharing.
Technavio Predicts $93B Revenue in US Casino Market by 2020
By Brodey Sheppard - February 02, 2016
The casino gaming market in the United States is looking positive.
According to a recent study conducted by market research firm, Technavio, there will be a moderate growth over the next four years in the US casino market. The study reveals that by 2020, the market will culminate at least $93 billion in revenues.
The report covers the growth potentials and present environment of the casino gaming market in the US for 2016-2020. Included in the study are up to date analysis and forecast for various market segments and all geographical regions.
In a statement, Technavio’s lead market research analyst for media and entertainment Faizan Akthar shared, “The tourism industry in the country has recovered since the end of the economic recession, growing at a CAGR of over 7 percent until 2015.”
According to Akthar, a great number of casinos are resorting to alternate methods of increasing their customer base and expanding their business in the US. He added that to be able to provide entertainment options, there are casinos that collaborate with luxury hotels. Moreover, casinos are reaching out to a larger population of potential customers by placing slot machines at restaurants, bars and other attractions.
Akthar added, “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.”
Online Gambling and Market Growth
Online gambling was legalised in the states of Nevada, New Jersey and Delaware in 2013. However, it has yet to be legalised in many parts of the US. Nonetheless, the legalisation of online gambling in select parts of the country still contributed to the growing popularity of online casinos.
With multiple verification procedures, virtual online casinos provide more protection to user transactions than real casinos. In 2015, the online gambling industry grew by almost 212% in terms of revenue. With many other states in the US considering legalisation of online gambling, forecasters predict an exponential growth within the next four years.
Transportation Infrastructure and Economic Growth in the US
The growth of the casino industry in the US is influenced by several factors, but advanced transportation infrastructure is one of the biggest contributors. In a year, 20 million visitors go to Las Vegas’ airports while intercity transport between Southern California and Arizona are quite efficient. Monorails, buses and shuttle services provide convenient transport for individuals who are interested in gambling.
Following these factors that contribute to the growth of the casino gaming market, the industry has provided several employment opportunities. About half a million jobs were generated by the US casino market and it has produced more than USD13 billion in tax revenues. An average American citizen is taxed at 10% whereas the tax for casinos are 25%. With larger tax revenues and employment opportunities, the US government is encouraged to legalise casinos across the country.