A comprehensive analysis by the Analysis Group has recently illuminated the evolving landscape of online and land-based gambling, charting a potential increase in market size as digital platforms become increasingly integrated. The analysis drew from a broad survey involving 2,389 current and “prospective” gamblers, providing a wide-ranging assessment of industry trends and gambler behaviors.
The investigation into this economic shift reveals that upon the advent of online casino options in states such as Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia, revenues for on-site casinos rose by approximately 1.9%. Notably, the Analysis Group did not specify which physical casinos the customers patronized nor delved into brand loyalty metrics.
Highlights from the survey detail how online casinos catalyze a higher frequency of gaming involvement, could funnel tax revenue currently lost to out-of-state or offshore entities back into home states, and potentially expand the overall gambling market due to existing loyalties. This expansion could see patrons from sectors like sports betting, migrating to online gambling avenues.
A key insight emerged, emphasizing the distinct experiences on offer at land-based casinos, which continue to draw different demographics, leading to a market complement rather than direct competition. This observation was underscored by survey participants who expressed a preference for the ambiance and varied entertainment options available at physical casinos. Personal testimonies included positive remarks about the experience of using licensed online apps but also highlighted the unique appeal of visiting a real casino, suggesting an additive rather than subtractive impact on the traditional gambling establishments.
Further probing revealed notable crossover in online gambling practices. Of those who participated in online gaming or sports betting within the last year, at least 64% had ventured into other forms of online wagering. The diverse pool of survey participants included individuals from both current and potentially future legal online gambling jurisdictions, all over 21 years old and with recent gambling experiences.
The Analysis Group went beyond its survey to evaluate the potential market in states anticipated to legalize online gambling, including Illinois, Louisiana, Massachusetts, New York, and Virginia. Projections point to a potential expansion of revenue from $5.9 billion in 2025 to an impressive $10.4 billion by 2029.
Revealing the habits of gamblers in areas where online gaming is already legal, the study found that nearly half of the respondents maintained their visitation frequency to land-based casinos post-online gaming legalization. Additionally, some even reported increased visits and spending, further dispelling concerns over online gambling cannibalizing traditional casino revenues.
The analysis offered a multifaceted approach, deploying a “unique model” predicated on the connection between sports betting and online gambling revenue, considering the parallels between the two. It also presented a thorough examination of the history and past studies of the igaming industry where legal, utilizing data from eight distinct sources to substantiate its projections and conclusions.
Concluding with a clear pronouncement, the study asserted, “This study reinforces the empirical evidence regarding the market-expanding effect of igaming on the overall gaming market and the complementary nature of igaming and land-based casinos.” This affirmation suggests a robust coexistence between online gaming platforms and venerable brick-and-mortar casinos, promising an era of growth and mutual reinforcement in the world of gambling.
