The latest report compiled by a reputable firm provides details about the condition of the gambling sector on a global scale and emphasizes on the key factors that would take the gambling industry to new heights.
According to market experts, the three main issues that deserve gambling officials’ attention are the revenues generated on the mass and VIP gambling markets and the capital returns to shareholders.
According to statistics the report contains, the global casino revenue for 2014 totaled $423 billion. Although there are various methods for participating in gambling activities, traditional brick and mortar casinos still play a key role in generating stable revenue.
Data shows that they formed 35% of the above-mentioned amount of $423 billion or $146 billion. As for lottery games, they managed to generate $121 billion. Online gambling activities formed 9% of the total revenue and that was attributed to the fact that these are still considered illegal in a number of countries.
US-based casinos generated $67 billion, Asian and Australian gambling sector generated $61 billion and as much as $18 billion was generated by venues based on the other continents.
According to the market analysts, the casino industry worldwide has to deal with complicated issues related to attracting more mass market players, the shrinkage of the VIP market and last but not least, the capability of gaming companies to meet shareholders’ expectations and get their investment back.
As far as the construction of casinos is concerned, most investors believe that players will be instantly attracted to the new property and the widened variety of gambling facilities. However, casino resorts seem to be more appealing because of the hotel accommodation they offer.
However, it is important to note that the effect sought by casino investors will not be achieved if the market is oversaturated. Saturation can be avoided by diversification of the non-gambling opportunities and implementation of stricter rules and regulations.
As far as the VIP gambling market is concerned, market analysts say that it is well-developed in Asia, and in Macau and Singapore in particular. However, it is a common knowledge that the anti-corruption campaign in Macau is a key reason for the economic slowdown in the administrative region. What is more, it is believed to be the major factor for the decline in the VIP gambling revenue by 8% YOY.
As already reported, the neighboring countries are to benefit from the anti-corruption campaign and the latest statistics show that they are luring VIP players quite successfully by offering higher commissions and attractive credit promotions.
