Due to the global Covid pandemic, people were forced to stay indoors and find new ways to approach what previously was a daily habit. The world shifted to the online space, finding paths to digitalise every action. Amidst this crisis, the casino industry has boomed. The shift to the online realm has increased profits by over $231 billion and now employs over 1 million workers. However, recent events have created disturbances in several markets.
So, nearing the end of Q2 of 2022, the question that is on everyone’s mind is, “Have these occurrences changed the casino industry, or will it remain intact and grow more?”
Here is what we know so far.
Global Outlook of the Casino Industry
The online casino “craze” has spread among the whole world. Countries that previously regulated only the land-based section of this industry now had to find new ways to incorporate online gaming.
Today, most countries have cleared this problem, while others are nearing their final stage. Naturally, the financial success of this recreational activity (online and land-based) has not been the same in every region. Let’s look at several markets and the income they’ve created from the casino industry so far.
The current market size of the casino industry in Australia is around $3.8 billion. Compared to previous years, this amount has significantly dropped. Namely, between 2017 and today, the market has seen a 9.9% reduction. The reason for this is simple – global events.
The Aussie casino industry has huge income from foreigners. Due to several consecutive lockdowns in the country, tourism in the last few years has dropped. This in turn means a lower in the revenue for land-based casinos. Moreover, the strict legal frameworks concerning online casinos have stifled industry growth with much potential.
Yet, there are projections for the current number to increase by 8.6% by the end of 2022. As stated by Jack Harris of CasinosHub, there is a high chance for this to occur, considering the world is now in its post-pandemic stage.
Following the same path as the Australian market, Asia’s casino industry saw a significant decrease in revenue. For example, the Macau government has announced a reduction in the $16 billion forecast for 2022 GGR due to the outcomes of the pandemic, reports GGRAsia.
On the other hand, Japan is amidst reinstating the role integrated resorts (IRs) had in tourism revival. South Korea also noted a significant reduction in the revenue in many of its gaming-oriented casinos. Namely, Grand Korea Leisure Ltd. disclosed an 80.6% decrease in the April casino sales.
Interestingly enough, unlike the previous markets, the West has held its ground. The casino industry managed to grow double the amount by 2020 despite the Corona pandemic coupled with the following inflation.
According to the American Gaming Association (AGA), casinos in this part of the world managed to reach $53.03 billion in 2021. In March 2022, AGA also noted an increase of $5.3 billion, with the top revenue-bringing states being Arkansas ($147.4 million), New York ($996.6 million), and Florida ($182 million).
The overall casino industry in the US is worth around $230.85 billion, thus holding 25% of the global casino sector.
This market is particularly turned to the online section of the casino industry. For this reason, the events from recent years had a positive impact on the revenue gathered from it. The most important internal markets are South Africa and Nigeria.
The first has had a continuous increase in GGR from 2011 up to 2021 and even today. What started with 20 billion ZAR ($1.259 billion) has grown to more than 34 billion ZAR ($2.140 billion).
Back in 2019, George Akume, Nigerian Minister for Special Duties and Intergovernmental Affairs stated that the casino industry in this country had reached over 250 billion NGN ($607 million).
The casino industry is regaining its former glory as the world slowly eases out of the pandemic. The Australian market, in particular, is expected to start climbing back to the top.
The US still remains the vanguard in this realm, with Vegas as a top destination for avid gamers. With the growing power of technology, Africa is set to expand in this area, especially targeting the online gaming industry. On the other hand, the Asia-Pacific region is expected to grow to an impressive $34.6 billion by 2026. It’s left to us to see whether these predictions will come true.