It’s common to say the house always wins, which is right most of the times. However, in the casino business, winning is not enough.
Here, well-established casinos are working day in and day out to wipe out new casinos in the market. Although casinos do not lose every day, the total gambling revenue has declined. Investors are becoming understandably impatient, as they seem not to understand the gradual decline in revenue earned. Below are a few reasons for this decline.
Changes in regulations concerning gambling throughout have allowed many casinos to start their activities. There are now casinos everywhere, both in major cities and local towns around the world, and this has led to a major competition between emerging and established venues. Some casinos are not able to survive the break-even period before they are wiped out. Gamblers behaviour also influences a casino’s performance, and convenience is on the top of any preference list.
Large casinos also pose a significant challenge to new casinos that cannot handle the competition. Besides being well established, they can usually feature better offers, such as huge discounts, bonuses and promotions. Also, start-up casinos compete with each other for customer’s attention and loyalty. If a new casino is not strategically placed, not offering a large array of games, promotions, bonuses and attractions, likely it will not be able to attract enough gamblers.
The Rise of Online Casinos
Another threat to the business is the rise of online casinos, even though some of the most well-established land-based casinos have already started to expand their businesses to the online world. Opening virtual versions of their classic brick and mortar casinos have been seen by many as a way to keep up with the times while having another (great) source of revenue, even though some fear the risk of cannibalisation from this practice.
But the rise of online casinos did shake the basis of the sector. The advent of new technologies in the gambling world was responsible for a major readjustment in the industry, and today revenue from online gambling already represents a great proportion of the whole. Online introduced a new generation of players to gambling. Some may see this as bad news to the offline area, with players choosing online for its diversified offers and convenience.
Land-Based is Out of Fashion
Let’s face the fact that the golden days when people pumped coins in physical are long gone. The new generation seeks fun elsewhere, and emptying their wallet into slot machines do not fall in the list. Most people nowadays are tech-savvy, and they prefer playing top online slots. Millennials are always on the move and those who like to gamble prefer doing so by playing casino games on mobile devices.
Adults in this age go for quality experiences delivered in a unique way. To visit a casino, there must be something pleasing to see, such as a chart-topping singer. New casinos are not able to offer such experiences to their customers reducing their capacity to business. This means they lose on the attractiveness race to well-established casinos. This factor has led to some emerging casinos being wiped out entirely, even before overcoming the break-even period.
Visiting a Casino Is Expensive
Long ago, people used to visit casinos to get the full experience. Glamour and style, free buffet, bonuses and great acts to see. If you want to visit a casino nowadays, you have to set money aside, in most cases, for food, drinks, and accommodation. This is costly, even more so if players also have to travel to get to the casino. The full gamble experience is expensive, and people tend to spend their money on different kinds of fun.