Latest industry report on the casino gaming market in the US predicts that revenues across the market in the US would hit USD 93 billion by the year 2020. This means moderate growth is expected in the sector for the time in review.
This recent report from Technavio was centered on the area of growth prospects for the gaming market in the US for 2016-2020. The research took into account, forecast for the different market segments as well as different geographical regions.
The report shows that more casinos are exploring new methods of customer acquisition and business expansion in the US. One of the main methods that they have embraced in the quest for new clientele is going into collaborations with notable luxury hotels to provide entertainment options. They provide the luxury hotels with slot machines that will be placed at restaurants and bars as well as other attractions that will spread the word about their business to potential customers.
Since the economic recession, the tourism industry has grown at a CAGR of over 7% up to 2015. The growth of the tourism industry and the fact that the US is one of the few countries where casino advertisements are allowed has led to an increased interest in casino gambling
The growth of the casino gaming market in the US can equally be traced to other driving forces. These include the proliferation of online gambling, the industry’s contribution to the national economy as well as the high standard transportation infrastructure in the US.
Proliferation of online gambling
Online casino gambling wasn’t allowed in the US until only recently where the states of New Jersey, Nevada and Delaware legalized it in 2013. So apart from new casinos, you can now find brand new gaming hubs around the web offering similar or higher level of entertainment in comparison to traditional casinos. User transactions are more protected in these virtual casinos as they offer multiple verification procedures. This is a segment that grew by more than 212% in terms of pure revenue in 2015 alone and has thus seen experts declare the online gambling scene as the future of casino gaming in the US. The growth in this sector is expected to balloon even further as more states in the US legalize online gambling in the next few years.
Industry contribution to national economy
The US economy is aided a great deal by the casino market as it provides substantial employment opportunities. In 2015, the casino market in the US generated half a million jobs and over USD13 billion in tax revenues. Whilst the average American citizen is taxed at 10%, casinos are taxed at 25%. This trend has made governments at both the state and federal levels to consider legalizing casinos across the country.
Standard transportation infrastructure
The transportation infrastructure has in the US is another strong factor influencing the growth of the casino market. The airport capacity in Las Vegas for example means that more than 20 million visitors can come in every year. The roadways in the state are equally well planned, connecting the cities of Southern California and Arizona. Add the efficient intercity transport system, the monorails and shuttle services and you can better understand the casino gambling market growth and positive outlook for the future.