Slots Play Casinos focuses primarily on the online casino gaming niche. In fact, we have written before about the advantages of online casino gaming versus land-based casino gaming.
So, the latest casino industry news report, that, while the land-based casino market and the online casino market generate large revenues, land-based casino revenues are substantially higher than online casino revenues. This came as a bit of a surprise to us.
So, let’s report the news and see if we can discern the reasons why both the land-based and online casino markets are thriving.
How Much Do Americans Gamble Each Year?
The American Gaming Association reports that land-based casinos not owned by Native American casino groups generated 66.5 billion dollars in revenue last year! The Native American tribes that operate casinos are not required to report their revenues so industry estimates are that they generated at least 50 billion dollars in 2023.
Revenue is Different Than Bets Made
It is very important to note that revenues in land-based casinos can come from many other sources such as bars, restaurants, gift shops, shows, and hotel rooms. So, the vast amount of revenues earned by land-based casinos is a reflection on the overall attractiveness of these casinos and is only partially indicative of how much players actually gamble there.
In addition, gambling revenues reflect only gambling losses from players. If the return to player rate is, say, 90% at land-based casinos, then players bet a lot more than the money that ended up being reported as revenues.
Online Casinos Have Enormous Revenues as Well
Online casino revenues were about 35 billion in 2023. This is about 30% of the overall revenues of land-based casinos. There is one very big difference: revenues from online casinos are almost all the result of gaming and not the other factors we mentioned above.
Casino revenues are expected to grow substantially in the coming decades. What fuels the great rise in casino revenues? How is it that land-based casinos can generate three times the revenues of all online casino put together? What attracts people to travel to land-based casinos at great expense and inconvenience?
And, what will be the effect of the elephant in the room?
What is the Elephant in the Room?
This is legalized and sanctioned sports gambling. Where it has become accepted to refer to playing casino games as gaming, there is no real gaming involved in sports gambling. It is pure gambling.
There is an underlying truism with sports gambling: while no amount of analysis can accurately predict the outcome of one event much less the cumulative outcomes of many sporting events, close analysis of athletes, opponents, and many other factors can give sports gamblers a clear advantage.
Every sports gambler considers himself or herself to be an expert in their favorite sport even if they do no analysis whatsoever.
Sports Gambling and Leagues
Most professional leagues now sanction sports gambling. They receive income from the proceeds of sports gambling. This turns sports betting on its head! We are not so many years removed form when Pete Rose was banned from baseball for life for betting on his team.
He was the manager of the team for some of the time he bet on his own team! He claimed that he never bet on his team to lose, thereby defending his actions as not constituting a conflict of interest.
And, now, professional sports teams are advocating for sports betting! Of course, players and team officials are not allowed to bet but the public is being encouraged to bet on sporting events.
The upshot of all this is that some of the revenues generated by land-based casinos comes from their sports betting room.
What Does the Future Portend?
There have been a couple of elephants in the room in this discussion and here is yet another one: land-based casinos are in the midst of a great comeback from the Covid 19 lockdowns. We don’t know if the massive growth in land-based gaming will continue or if there will be a downturn as gamers rediscover the advantages of online casino gaming.
Before we review these advantages, we should note what players like about land-based casinos.
Some of the Attraction of Land-based Casinos is Caused by Inertia
Scientifically, inertia is the tendency of a body at rest to remain at rest or for a body in motion to continue to be in motion. There were a lot of online casino gamers who were locked out of their favorite gaming venues by the Covid 19 pandemic.
When they were finally allowed back in, they flocked in; gamers in motion so to speak.
Land-based Casinos are Glittery
The people who build land-based casinos spend a lot of money on glitter. The glitter, bells, and flashing lights plus the added attractions of exploding volcanoes and so on are highly attractive.
They represent pure entertainment.
Part of the glitter at land-based casinos is that people are encouraged to dress to the nines. Men may wear a top-grade suit but women dress in their best evening gowns and sexy outfits. All this to play slots or blackjack!
Land-based Casinos are Loud
In addition to the bells and whistles, players at the craps table and roulette table are encouraged to yell, scream, and call on Lady Luck to be a lady tonight (even when it is the middle of the afternoon)!
How Do Online Casinos Get Gamers’ Feet in the Door?
All of these attractions considered, we might wonder why anyone plays casino games at an online casino! Here are some of the many reasons.
- Online casinos are way more convenient. Think about packing, getting to the airport, waiting, waiting, did we mention waiting, or driving versus making a cuppa and walking to the sofa!
- Online casinos are more comfortable. With mobile casino platforms taking the bulk of online casino traffic, that soft and comfortable sofa or bed beckons.
- Online casinos are more romantic. While women may dress to be sexy at a land-based casino, online casinos make romance more about the woman and less about her sexy dress.
- Online casinos offer deposit bonuses. Because of the wagering requirement and the very limited time a player is at a land-based casino, these casinos cannot offer deposit bonuses. Online casino bonuses are often worth thousands if dollars of the casino’s money.
- Online casinos make it easier to set sound time and monetary budgets. Land-based casinos want players to lose track of time so they have no clocks or windows.
- Online casinos encourage gamers to wait until the gaming is over to have a drink. Then you can go to a local pub and enjoy the rest of the evening with friends. Land-based casinos ply players with alcohol since alcohol reduces inhibitions and leads to poor gaming decisions.
- At a land-based casino, a woman dressed in her most provocative dress, may be harassed by a player who has had too much free whiskey. The miscreant may be whisked out of the casino quickly but the unhappy experience of the woman remains.
Slots Play Casinos Remains Steadfast in Extolling the Virtues of Online Casino Gaming
We have made it our goal to bring as much good information about online casino gaming to the public’s awareness as possible. SPC has over 30 casino reviews, dozens of slot reviews, guides to other casino games, and much more helpful information for online casino gamers.
Even land-based gamers can benefit greatly from reading our guides, articles, and reviews.
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