by All About Games in

The advent of online casinos in the mid-1990s brought forth a new era of remote gambling. Over two decades later, web-based betting sites have grown exponentially while profoundly disrupting brick-and-mortar casino industries along the way. As profits decline for many land-based venues, they must adapt quickly or face further revenue loss to their online counterparts at Roll XO Casino.

Accelerated Online Gambling Growth

Online casinos provide a convenient alternative to location-based establishments. Players enjoy the flexibility to wager from home on internet-connected devices without time, dress code, or sobriety restrictions imposed in live settings. These favorable dynamics support meteoric iGaming growth.

Market researchers tracked a compound annual online jetx winning strategy growth rate exceeding 11% from 2017-2021. Over that same period, land-based casino revenues flat lined or regressed in most jurisdictions. Experts forecast the global internet gaming sector will be valued at over $127 billion by 2027 as virtual venues attract new players and siphon existing patrons from traditional casinos.

Table 1: Key Online v Land-Based Gambling Metrics

201720212027 (Projected)
Online Gambling Revenues$46.9 billion$67.7 billion$127.3 billion
Land-Based Gambling Revenues$261 billion$258 billion$252 billion
Online CAGR+12.7%+11.3%+13.5%
Land-Based CAGR+1.12%-0.5%-0.5%

Declining Land-Based Casino Profits

This online gambling growth directly impacts brick-and-mortar establishments’ bottom lines. While overall betting volumes expand, internet casinos assume an increasingly larger market share percentage. Land-based operations face flat or declining revenues even as total gambling spend rises across most jurisdictions.

In the United States, commercial and tribal casinos generated over $43 billion in 2019 before the COVID-19 pandemic disrupted operations. That figure represented a mere 2.7% increase from 2014 totals. Alternatively, legal US online gambling grew over 1000% in that same five-year stretch. Though starting from a smaller base, web-based betting expanded rapidly at land-based gaming’s expense.

The patterns hold true worldwide. Total casino gross gaming revenue (GGR) in Macau dropped from $37 billion to below $30 billion from 2013-2019 with baccarat tables emptying as VIP players transitioned play to online venues. Australia’s land-based gambling spend declined by 15% over the past decade as internet casinos gained traction. The trends signal that most brick-and-mortar establishments face grave revenue challenges from their online counterparts for the foreseeable future.

Forced to Adapt Offerings

Facing declining foot traffic and lower profits, many land-based casinos must quickly adapt their entertainment offerings to retain and gain back patron interest. Virtual betting sites provide round-the-clock action across thousands of gaming titles that brick-and-mortar venues have difficulty replicating at the same scale.

Some establishments now partner directly with internet gaming operators to offer hybrid online/on property experiences. Eldorado’s Caesars Palace offers its online real money gambling apps that players can access anywhere nationwide. Guests can even redeem loyalty program rewards to fund these internet casino accounts.

Other land-based operators add new dining, accommodation, retail, and entertainment offerings catering to younger and more diverse demographic groups. Attracting these patrons with non-gaming amenities may drive increased casino visitation and reverse declining gambling revenue patterns tied directly to internet gaming growth.

Ongoing Disruption Expected

Most industry analysts expect online casinos to continue gaining market share at the expense of land-based establishments in the coming years. Already profitable internet gaming operators utilize data and technology to refine user experiences and target expanded player acquisitions. With lower operating expenses than brick-and-mortar venues, their margins expand further even amidst rising marketing costs.

These digital betting sites should have little issue funding the latest promotions, gaming innovations, and responsible gambling initiatives expected to drive additional registrations. As internet casinos grow, legacy land-based operators must either adapt quickly or continue ceding ground. With reputable analysts forecasting over 13% annual online gambling growth for the next five years, the trends show no signs of reversing course.

Though once dominant, legacy casinos now face grave threats from rising internet gaming competition. Their survival depends on adopting modernized offerings and amenities to cater to evolving consumer preferences in the digital age. For many, the online casino disruption has already profoundly impacted their profit equations, with further declines lying ahead.

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