Rosy days ahead for the casino gaming market in the United States.
A new study by market research firm Technavio forecast that the U.S. casino market will see a moderate growth rate over the next four years, culminating in revenues that could reach at least $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, in a statement.
Akthar said casinos in the United States have already started adopting alternate methods to increase their customer base and look beyond the country for expansion. According to the analyst, casinos are collaborating with luxury hotels to offer entertainment options, placing slot machines at restaurants, bars and other attractions that are within reach of potential customers.
“The U.S. is one of the few countries that allow advertisements for casinos, thus encouraging local level marketing by casinos. This strategy has increased the number of tourists interested in gambling in the country,” Akthar noted.
The study also credited the growth of the casino gaming market to three driving forces: the expansion of online gambling, immense contribution to national economy, and the advanced transportation infrastructure in the United States.
Online gambling has yet to be legalized in many parts of the U.S., except for Nevada, New Jersey and Delaware. Still, the legalization of online gambling in these states have contributed to the popularity of online casinos in the country.
“This [virtual online casino] segment grew by almost 212 percent in terms of revenue in 2015, indicating a trend that is set to make online gambling the future of the casino market in the U.S.,” Akthar said. “Virtual online casinos provide more protection to user transactions than real casinos offer because they offer access after multiple verification procedures.