US casino industry to soar in next four years

US casino industry to soar in next four years

Monday, January 25, 2016 Totally Gaming
The expansion of online gaming will be one of the driving factors in growth

The US casino sector could be worth $93bn (€86.0bn) by 2020, according to a new paper published by research and advisory company, Technavio.

The market report said that expansion of online gambling, the sector’s contribution to the national economy and advanced transportation infrastructure in the US will play their part in growing the industry by a compound annual growth rate (CAGR) of 5 per cent between 2016-2020.

The figure of $93bn would be 34 per cent higher than the $69.1bn revenue for 2014 as estimated by Statista, and a 63 per cent increase on the $57.4bn of 2010.

The Technavio paper said that online gambling is “the future of the casino market in the US… as exponential growth in this segment is expected to gain further traction with many other states in the US considering legalisation of online gambling in the next four years”.

Faizan Akthar, Technavio’s lead market research analyst for media and entertainment sector, said that diversification of offering at the casinos would help to increase revenues.

“Many casinos are adopting alternate methods to increase their customer base and expand their business in the US,” said Akthar.

“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 customers.”

The report added that it is expected that US states will be keen to open more casinos due to the benefits in tax revenue, tourism and employment, while Las Vegas’ airport capacity and improved infrastructure mean that expansion can continue in the country’s biggest gambling zone.

Akthar said: “The tourism industry in the country has recovered since the end of the economic recession, growing at a CAGR of over 7 per cent 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.”

 

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