US Casino Market To Be Worth $93BN By 2020January 26, 2016 1:08 pm
Bright days lie ahead for the USA’s casino market, which is set to experience moderate growth over the next few years and reach around $93 billion in revenues by 2020. This is the conclusion of a new report produced by Technavio, with the market research company’s lead analyst, Faizan Akthar, highlighting the impressive compound annual growth rate (CAGR) experienced by the country’s tourist industry over the past few years, of which the gambling industry is closely connected. As he explains:
“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.”
The USA casino market, and specifically Las Vegas, has also benefited from a looser visa policy that was introduced towards the end of 2014 and has made it easier for Chinese tourists to enter the country by applying for a 10-year multiple-entry visa.
The Technavio report identifies a number of factors driving forward expansion of the US casino gaming market, including the country’s advanced and efficient transportation infrastructure, as well as the incentives produced from huge revenues generated by the industry for the country’s economy. The debate surrounding online gambling, with the industry having already been legalized in Nevada, New Jersey and Delaware, has also contributed to the increasing attraction of online casino gambling in the US, and as Akthar explains:
“This 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.. Virtual online casinos provide more protection to user transactions than real casinos offer because they offer access after multiple verification procedures.”
According to the American Gaming Association’s (AGA) most recent results, the US casino industry generated $81 billion in 2014, of which $67 billion was derived purely from gambling activities. Accounting for much of the growth that year was online gambling, together with limited stakes slot machine gambling in venues such as restaurants and taverns.