It seems that in tough times, wherein world markets are suffering, gambling can always be counted on to thrive. According to a new report from Global Betting & Gaming Consultants (GBGC) on the global gambling market, land-based gaming businesses may suffer in the coming years but online gaming will continue to grow.
The 1,000-page report is entitled “Change is on the Cards” and analyzed the gaming markets in the face of the current global financial crisis. Land-based casinos and gambling establishments are predicted to have some difficult times ahead, especially in Europe and the United States, though the market in Asia should continue to grow and not experience that same downturn. The ongoing growth of Macau, the prospects of two massive casinos in Singapore, and the hope of having a legal casino in Japan within the next five years signal that Asia will be the exception to the rule.
According to the GBGC, which is a special consultancy dedicated to the gambling industry, the negative slide for land-based businesses will primarily be a result of higher energy costs, rising fuel costs, smoking bans, and the ease and cheap cost involved in establishing an internet connection and gambling online.
GBGC Chief Executive Warwick Bartlett commented, “The slowdown in the USA will hit the pockets of Americans and Las Vegas will feel the effect of that along with high energy costs and a transportation system reliant on road and air. The US has not invested sufficiently in high speed rail and destination resorts going forward will suffer as the cost of carbon-based fuels continues to be an issue of cost and supply.”
The UK will also suffer as the country has missed opportunities to attract more gamblers to their country. As well, governments throughout Europe have been slow to realize the revenue possibilities that can come from gaming. All the while, gambling overall, primarily online, is predicted to grow from $345 billion in 2007 to $433 billion by 2012.
Bartlett continued, “People are leaving their cars in the garage, playing online bingo or watching a match on TV and placing a bet from the comfort of an armchair. The land-based businesses are going to find it hard to compete with the value on the internet and with as much as 30% of gambling revenue now leaving the UK and going offshore the government should take note.”