Despite economic challenges, the US casino industry remains resilient. New land-based casinos are opening in all 50 states and online gambling is expanding. How can these casinos thrive and expand amidst the current economic conditions?
The 2020 Paradox
When everything closed in 2020, the general thought was that every business would have to lose money until it could reopen. This is precisely what happened for most industries; people going out of business was a common theme during these two years. However, the casino industry has experienced a 5% CAGR during this period.
This increase in revenue is explained by two things: the online casino model and its cryptocurrency integration.
The Rise of Online Casinos
Online casinos have evolved significantly in recent years, adopting advanced technologies to provide high-quality platforms. The introduction of HTML5 technology has been a breakthrough in this industry. It has made websites more responsive, easier to develop and packed with more features like bonuses and promotions.
Limited entertainment from 2020 to 2022 drove people to offshore online casinos. This caused illegal gambling and capital outflow. To address this, states legalized and regulated online gambling. This prompted players like Parx to launch compliant nationwide platforms. The accessibility of mobile gambling further contributed to the success of online casinos.
Crypto My Casino
Cryptocurrencies revolutionized global investment and online gambling, with many sites supporting cryptocurrency transactions. Software providers developed Blockchain-based games and some casinos exclusively accept digital currencies.
Crypto-owners with funds in e-wallets found online casinos a convenient way to spend their coins without converting to fiat currency.
Land-Based Casinos Are Back!
They can now resume their usual activities as shops and businesses have reopened. This, in turn, also impacts their entertainment options. Before, land-based casinos were only found in specific locations such as Las Vegas or Atlantic City. But, many states have opened the gates to online gambling. As a result, some states now allow big entertainment groups to open more land-based resorts.
Such is the case of WynnBet, which is now expanding to West Virginia after opening in Michigan and New Jersey. Moreover, NYC has opened three licenses, with two already granted and a third up for bids.
Is The Industry Shifting Back?
The gambling industry is back to land-based operations, but it’s not going backward. Groups like WynnBet, Parx, or Caesars are looking to create ecosystems for players. The goal is to offer resorts and online platforms to extend the experience. The industry is getting more robust in the West.