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How the Casino Industry is Expected to Shape Up in the Next Few Years
How Las Vegas has Fared
For years, Las Vegas enjoyed the status of the entertainment capital of the world, without facing much competition. According an article published in the Forbes Magazine, it witnessed great spells of profits, generating as high as $6.83 billion in 2007. However, this number declined to $5.55 billion during the recession, two years later.
Ever since then, Las Vegas has not been able to recover completely from the crisis and is still trying to match its previous levels, collecting around $6.50 billion in 2013. Given the increase in the spending capability of people not only in the United States but in most parts of the world over those six years, this cannot be considered such a great number.
The numbers are still below their peaks due to two main reasons. Firstly, states like Pennsylvania are legalizing table games and blackjack in casinos to generate revenues, which has led to an increase in tourism, according to Panorama Tours, Inc. Secondly, Las Vegas seems to have failed to adapt to the changing trends in the world of gaming.
Factors Affecting a Change in the Gambling Industry
- Fast Games: Gone are the days when players would sit at the table for two to three hours, waiting for their turn in their expensive tux or gown. The new generation is always on the move and for the gaming industry to survive, it will have to come up with alternatives that give the same experience without wasting so much time.
- Less Skill, More Entertainment: What sort of game did the older generation prefer at home? Monopoly. What do we prefer at home? Candy Crush. This choice is visible even in the casinos. While the 80s and 90s saw card games as an art, the millennials prefer to head to the slot machines, without wasting too much time. They don't value skill, they want action, and with such preference, skill-based games will be fighting for their existence in the market in the foreseeable future. According to Global Gaming Business Magazine, the millennial generation is all about connectivity, entertainment and immediacy.
- F&B Choices: The casual nature of people is not limited to gaming alone. It has started to become evident in their selection of food and beverages too. They don't walk to the bar and say, “A dry martini. Three measure of Gordon's, one of Vodka, half measure of Kina Lillet. Shake it well until its ice-cold, then add a large slice of lemon peel. Got it?” It isn’t “cool” anymore and, moreover, it's expensive. People want value for their dollars, which they are getting in the restaurants outside the casinos. It won't be enough to serve good quality F&B in the coming days, the casino bars will have to combine their offerings with the right price, value and speed of service.
What Does the Future Hold in Store?
Only a few years ago, people would go to a theater to watch a movie or buy a DVD. Today, they have Netflix and much more, at a comparatively cheaper price and all the comfort and convenience of staying at home. This is a trend that could take over the gambling and casino market soon. According a report published by Statista, land-based casinos across the globe generated around US$317 billion from gamblers in 2015. With Las Vegas being the center of activity, 41 million people visited the city in 2014 alone.
According to Technavio’s 2016 report, titled Casino Gaming Market in the US 2016-2020, the casino gaming market in the country is expected to achieve revenues of US$93 billion by 2020. In fact, BusinessWire quoted Technavio’s lead market research analyst for Media & Entertainment, Faizan Akhtar, as saying, “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.”