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US Casino Industry Outlook 2020
More Than Just Gambling
“The casino market in the US is considered to be one of the largest entertainment market in the world,” according to a press release by Research And Markets in February 2016. A key reason for this possibly is the fact that you don’t simple visit a casino in the United States, you visit a resort, that is complete with various other recreational facilities, along with hospitality, fine dining and much more.
What the casino industry in the nation then caters to is complete entertainment. Little wonder then that analysts at Fitch Ratings Service predict a stable year for US gaming operators in 2016. In fact, according to the Las Vegas Review Journal, the planned openings of a few casinos through the year could tip the scales in what is being considered a saturated market.
Casino Openings in 2016
The United States has two major casino openings slated for 2016. First, the Lucky Dragon Hotel & Casino is scheduled to open in August 2016, according to a May 2016 article on Casino New Daily. This will be an Asian themed boutique hotel and casino, estimated to cost $373 million and located on the Las Vegas Strip. PENTA Building Group, the developers of Lucky Dragon claim that it would offer an authentic Asian gaming experience.
The second casino slated for launch in the latter half of the year is the MGM National Harbor, said to the worth $1.3 billion. This would mark the sixth gambling venue in Maryland. Penn National Gaming also intends to open the Hollywood Casino Jamul, worth $390 million, near San Diego in July 2016. With such high value openings in store, it could only mean good things for the gaming industry in the country.
According to a report titled Casino Gaming Market in the US 2016-2020, published in January 2016, the US casino market is expected to grow at a CAGR of 5% during 2016-2020. “Casinos are seen as a luxury source of entertainment and are often a primary attraction of a city. Many casinos are adopting alternate methods to increase their customer base and expand their business. Associations with the hospitality sector is one method that casinos have adopted, integrating prominent luxury hotels with their gaming businesses.
Slot machines are often placed at restaurants, bars, and other attractions,” the report stated. Another study by Technavio, also published in January 2016, predicts that the US casino market would see “moderate growth” during 2016-2020, with revenues rising at least to $93 billion by 2020. “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,” said Faizan Akthar, Technavio’s lead market research analyst for media and entertainment.
What is Fueling Growth?
Akhtar went on to say that US-based casino had already begun to adopt alternate methods to increase their customer base, while also looking to expand beyond the country. With casinos collaborating with luxury hotels to offer a variety of entertainment facilities, such as the placing of slot machines in bars and restaurants, they were attempting to give easier access to potential customers. Also, with US being among the very few countries that allow casinos to advertise, local marketing campaigns were possible and had proven to be effective in attracting tourists.
According to a press release on Business Wire in January 2016, this industry makes a significant contribution to the nation’s economy. In 2015 alone, this market generated more than $13 billion in tax revenues, as well as half a million jobs! This trend has been motivating the government to legalize casinos across the nation. The transportation infrastructure also plays a significant role in promoting the growth of this sector. Apart from easy air connectivity, the well planned roadways connecting Las Vegas to Arizona and Southern California make it convenient for vacationers to travel to the gambling destination, say experts at Panorama Tours, Inc. In fact, intercity travel as well as travel across cities in large groups is quite pleasurable, adding to the holiday experience.