Online casinos are positively impacting the revenue of land-based establishments in the US – EKG

Consulting firm Eilers and Krejcik Gaming (EKG) conducted a study on the impact of online casinos on the revenue levels of land-based gambling establishments. The report commissioned by iDEA (iDevelopment and Economic Association) indicated that the effect of iGaming was positive.

In the course of the study EKG analyzed data from casinos, regulators and regional governments for 16 years. Six states were selected to determine the impact of iGaming on gross land-based gaming revenue (GGR): Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia. EKG compared the cumulative quarterly GGR growth rates of land-based casinos before and after the implementation of iGaming. In each of the states, the advent of online gaming resulted in positive changes for traditional establishments.

Land-based casinos in West Virginia had the highest rate of gross revenue growth at 6%. This market peaked in 2012 and gradually declined until the launch of iGaming in June 2020. The report noted that 2023 could be the best year ever for West Virginia land-based establishments.

As for the other five states, after the introduction of iGaming, the gross revenue of traditional casinos also increased:

Michigan – by 4.89%.

Delaware – by 1.94%.

New Jersey – by 1.28%.

Connecticut – up 0.34%.

Pennsylvania – up 0.14%.

The EKG study also found that land-based and online casinos attract different categories of players. The source of this data came from Golden Nugget Online Gaming’s presentation to investors in JunThe report says that a visit to a platform is usually measured in minutes, whereas a visit to a land-based establishment is likely to last more than an hour.

As part of the research, EKG conducted a survey among operators representing both areas of gambling business. 20% of respondents noted that the emergence of iGaming led to a moderate increase in the GGR of land-based casinos, but the rest of the interviewees did not notice significant changes.

Note: Macau’s gross gambling revenue in February may exceed 19.8 billion patacas.


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