Global Casino Industry Set to Reach $153.2 Billion by 2026, Report Predicts
A recently released report on the “Global Casinos Industry” by ReportLinker predicts that the global gambling market across offline and online casinos will reach a value of $153.2 billion by 2026 expanding at a compound annual growth rate (CAGR) of 3.7 percent over the forecast period from a size of $123.4 billion estimated for the Covid-19 struck year of 2020.
The report projects a CAGR of 4.1 percent for the Gambling Machines segment and revenues to the tune of $77.4 billion in 2026, while the segment of Gambling Tables is expected to grow at a CAGR of 3.5 percent. Slots show as the most popular type of gambling machines and their rising prominence is attributed mostly to the easing of regulatory regimes by various governments around the world.
In terms of geographical distribution, the U.S. boasts a prominent position with a market size estimated at $70.1 billion in 2021. Canada, with a projected CAGR of 3 percent, and Europe, with a prognosis CAGR of 3.3 percent over the analyzed period, are also worth mentioning.
The Asia-Pacific region is expected to grow at an ever higher compound annual growth rate, estimated by ReportLinker at 4.5 percent to reach a market value of $34.6 billion by 2026. The report gives special attention under several headings to the high growth potential of the online casino India market, which has not gone unnoticed by top European players who are keen to tap its potential.
Key factors that influence casino spending and gambling market growth include the health status of an economy, the levels of employment and the disposable income of the population. The effects of the Covid-19 pandemic have also been considered by the ReportLinker analysts.
Online Casino Gaming is the Major Driver of Market Growth
The increasing popularity and adoption of online casino gaming have turned it into the major driver for market growth on a global scale. Nowadays, the casino play user experience offered by cyberspace platforms is so enhanced that it attracts even professional gamblers.
The wave of advances in technology, including developments in online security and digital payments, cryptocurrencies and non-fungible tokens (NFTs), artificial intelligence and machine learning (AI & ML), virtual and augmented reality (VR/AR), and others, have provided the global online casino industry with the opportunity to continuously improve their offerings.
Ongoing Popularity of Gambling Destinations Back Up Growth
The continued popularity of world-famous gambling destinations is another factor backing up the growth of the global casino market. The rising attractiveness of Asia-Pacific gambling havens such as Singapore and Macau is expected to make a significant contribution to the projected high growth rate in the region.
American Las Vegas continues to shine bright on the global scene drawing casino goers attendance from the whole world. With the easing of Covid-related restrictions in the West, a number of recent large investments attest the restored faith in the potential of the Las Vegas Strip.
In one of such deals, MGM Resorts International acquired the right to operate the Cosmopolitan, a luxury casino and hotel complex on the Strip, for an initial cash payment of $1.63 billion and a lease agreement for 30 years including three 10-year renewal options. The annual rent price has been set at $200 million with yearly increases between 2 and 3 percent depending on inflation rates, making the total value of the deal roughly $5.65 billion.
“This is a big moment for our company and for the Las Vegas Strip. The Cosmopolitan of Las Vegas has already established itself as one of the Strip’s premier resorts with an iconic brand, well-curated experiences and a loyal customer base,” Bill Hornbuckle, MGM president and chief executive officer said in a statement.
The ownership of the real estate itself was acquired by the Cherng Family Trust, Stonepeak Partners and Blackstone Real Estate Income Trust (BREIT) for a price exceeding $4 billion.
Another key investment in the Las Vegas Strip was recently announced by Wynn Resorts who undertook a multi-million total renovation of their Wynn Tower Suites in “the most extensive design evolution ever made to the venue” including all 2,674 guest rooms, the lobbies, the corridors and the escalators.
“Although individual touches have been created to suit differing room layouts, the most notable changes include a reconfiguration to the washroom in the standard guest room to introduce separate vanities and double the storage space; an expanded dressing area with mirrored walls and upgraded closet with new wardrobe; and an extended multi-purpose table in the main living room for working and dining. Additional power and data ports and advanced touchless in-room technologies complete the project,” the official statement by the company elaborated.