Why the casino industry has huge growth potential
With new markets emerging, the U.S. commercial gaming industry will continue to grow. Regional casinos are facing declining revenues. Three significant trends to watch in 2015 are:
- Continued market expansion
- Partnerships between states
- Diversification beyond the gaming floor
Market expansion will be a key area to observe in the future. State legislatures still believe that the gaming industry can help overcome budgetary gaps. Partnerships between states are becoming more important. States are working to lobby for the overall growth of the gaming industry.
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The above chart shows how the gaming market has grown over the years—especially in the Asia-Pacific region. The gaming industry is expected to grow rapidly in the future. As the industry continue to evolve, casinos, resorts. and game developers are presented with a growing number of opportunities to expand their existing channels. They can pursue new domestic and international avenues.
Legislation is usually a market barrier within the gambling industry. Companies like Las Vegas Sands (LVS), Wynn Resorts (WYNN), Caesar Entertainment (CZR), and Boyd Gaming (or BYD) have implemented flexible and adaptive programs to take advantage of each new challenge. They have the ability to adjust in the future. Laws will change and markets will develop.
Exchange-traded funds (or ETFs) like the VanEck Vectors Gaming (BJK) and the Consumer Discretionary Select Sector SPDR Fund (XLY) track leisure companies. The introduction of wireless technology and online opportunities are continued growth avenues.
“There is no doubt the commercial casino industry is a significant and vital part of nation’s economy. The industry generates and supports economic activity that stretches far beyond the communities that host casinos and into the greater American economy” said Frank J. Fahrenkopf, Jr. He’s the President and CEO of the American Gaming Association.
The development of gaming entertainment can create tens of thousands of jobs. It can generate substantial amounts of tax revenue. Gaming can attract massive amounts of foreign investment. It can also create tourist destinations. The market is expected to grow in the future. New technology and regulatory approvals help traditional gaming suppliers capitalize on global online, interactive, and content opportunities.