The narrative surrounding online gaming and its impact on traditional casinos has taken a positive turn, according to a recent study. Conducted by Eilers & Krejcik Gaming (EKG) on behalf of the iDevelopment and Economic Association (iDEA Growth), the research reveals that online gaming may actually bolster the revenues of brick-and-mortar casinos rather than detract from them. Jeff Ifrah, the founder and general counsel of iDEA Growth, highlighted the findings, noting that online gaming acts as a growth stimulant for the casino industry, not a threat.
Revenue Growth from Online Gaming Integration
The study titled “Comparing Online and Land-based Casino Gaming” brings to light the financial benefits of integrating online gaming into the casino market. In the six US states where iGaming is regulated, there has been an observed average quarterly revenue increase of 2.44%. This suggests that the adoption of online gaming platforms can lead to significant financial gains for traditional casinos. EKG’s investigation into these states showed that the presence of online gaming correlated with improved revenue outcomes compared to states without such offerings. Matt Kaufman, Managing Director of EKG, observed that online gaming has the potential to revitalize casino markets that have been experiencing declines, marking a shift towards stability or even revenue growth.
The comprehensive analysis spanned over 16 years and provided insights into the dynamics between online and traditional gaming venues. One key finding is that online gaming often attracts a younger audience, looking for quick and accessible gaming experiences, while land-based casinos appeal to a wider age range, offering more immersive experiences. This differentiation in customer base suggests that online gaming can introduce new demographics to the casino industry, potentially expanding its overall market.
Moreover, the study’s findings challenge the concern that online gaming would lead to a reduction in physical casino visitations. Instead, it posits that online gaming platforms and traditional casinos cater to distinct player profiles, each contributing to the industry’s growth in unique ways.
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