Revenues from Online Gambling Sites Skyrocketing, Boosting In-House Gaming
According to yStats.com's Global Online Gambling and Betting Market 2014, after New Jersey legalized online gambling in November 2013, companies generated $1 million per month, but today, that figure has jumped to $10 million to $12 million per month from online sources. Hundreds of thousands gambling accounts have been registered. Currently, Delaware, Nevada and New Jersey have allowed online gambling, but many other states are planning to follow suit. Companies, such as Harrahscasino.com, are benefiting from this increase in gambling, which, in turn, is benefiting casino's corporate bottom lines.
Mobile gambling is expected to reach 40 percent of gambling revenues by 2018, the publication reported. An estimated hundred million people are expected to be online making bets when mobile gambling hits its peak. In addition to mobile gambling, the increasing use of Bitcoin currency is pushing more people to begin gambling through social gaming sites, another source of the trend of increasing revenues. Besides the United States, the growth of online gambling is exploding worldwide where many countries are allowing it.
Online Boosts Revenues for Casinos
The University of Nevada Las Vegas Center for Gaming Research has been tracking the trend for years. Researchers believe that as online gambling increases, so will revenues will rise for casinos.
“I think, to an extent, they are boosting numbers. Certainly in the heyday of online poker in the mid-2000s, revenue at brick-and-mortar casino poker rooms increased,” said Dr. David Schwartz, director of the center.
As long as people are willing to play games online, the trend for higher revenues exists, Schwartz added. Unless people all of a sudden decide to stop playing, the revenues will remain stable as they have since the early days of online gambling.
Gaming Industry Taking Off
While online gambling has increased steadily in the last 10 years, the gaming industry in general has been on the rise. Casinos are earning one-third of their revenues from nongambling assets, such as food and beverage, entertainment, retail shopping and more. The industry is becoming a great part of the U.S. gross domestic product and a large employer in many states, according to Beyond the Casino Floor: Economic Impacts of the Commercial Casino Industry, a report compiled by the American Gaming Industry.
Twenty-five years ago, casinos operated in Nevada and New Jersey. In 2010, 566 casinos are in 22 states and employing thousands of people. The public perception remains that casino companies make most of their money through gambling, the report found this perception to be faulty. The industry has created 820,000 jobs and creates $125 billion in consumer spending. It represents 1 percent of the $14.5 trillion GDP.
Casino gambling has made a secondary impact on the U.S. economy. For example, the industry spends $76 billion on supplies and goods needed to run and service the casinos, the report found. These businesses provide another 470,000 jobs with salaries and benefits totaling $25 billion. The average salary for people in the gaming industry is surpassing those in other areas of entertainment, and the commercial casino industry is on par with similar-sized industries for producing jobs and in per employee expenses.
The report also found the impacts extend far from the casino floors. About one-third of the $125 billion in total spending reported by casino industry in 2010 comes from countries outside the United States. This mirrors findings from Global Online Gambling Market 2014. Both reports have noticed a fast-paced increase in other countries regarding gambling revenues and expenditures. In the last 20 years, consumer spending on the gaming industry surpassed any other entertainment industry and continues a trend upward, Beyond the Casino Floor found.
State Revenues Off
Not everyone has benefited from the growing demand to spend money at casinos and through online gambling. States that have legalized online gambling expected a large influx of revenues from the industry. As outlined in this page, Delaware and New Jersey have reported lower than expected revenues from online gambling. Their economists do not predict an upward trend. State officials believe the lower-than-expected revenues is due to the early stages of the online gambling industry. Administering the new regulatory programs have strapped state budgets, offsetting the revenues generated from gambling, officials said. They remain optimistic that the trend will change in the coming months as more people go online to make bets.
What This Means For Casinos
Companies, such as Harrahscasino.com, are reaping rewards of the growth in consumerism online. They are seeing an increase in revenues from people betting online, and that increase is spilling into the brick-and-mortar properties. They are getting more revenues from outside sources that is attracting people both online and in-house. Thus, online gambling has been a boon for companies and the time is ripe for action online and more revenues.