According to a study by a research consulting company Brainstorm Research, the casino tourism industry is predicted to grow from $290.7 million in 2023 to nearly $492.22 million in 2030, representing a Compound Annual Growth Rate (CAGR) of 6.7%. However, the question is, what forces are driving this burgeoning growth? What trends are in play when it comes to shaping the future of casino tourism? Well, in this article, we delve deeper into the casino tourism sector, its rapid growth, market size, key trends and industry dynamics.
Growth Dynamics of Casino Tourism Industry
So, what is pushing forward the gambling industry?
- Relaxation of Gambling Laws: Over time, the legalization and deregulation of gambling in various regions unlocked new casino markets and boosted tourism in these regions. Let’s take the example of Las Vegas. The city has experienced a spike in visitors after the legalization of online gambling in neighbouring states, with 38.8 million visitors in 2022 (20.5% more than in 2021).
- Rising Disposable Income: In recent years, disposable incomes have been on the rise globally, primarily in emerging economies. Real disposable household income per capita in 37 countries, which belong to Organization for Economic Cooperation and Development, increased by 0.9% in the first quarter of 2023. As a result, this translates to an increase in spending on leisure activities and casino visits included. Today, people are travelling not only due to their passion for travelling, but also to explore the casino atmosphere in their destination of choice.
For example, Asia Pacific. The market is projected by Orion Market Research (OMR) to reach $1 trillion by 2030 due to the rise of disposable incomes and urbanization. Also, leisure spending in emerging economies is expected to grow by 5.5% annually between 2023 and 2027, something that will contribute to the growth of the casino tourism scene.
- Change in Consumer Preferences: Most travellers go beyond traditional sightseeing. As we’ve researched from Short Term Rentalz, 85% of families are into “experiential” trips as compared to traditional sightseeing holidays. So, with the integrated resorts that come with casinos, travellers can play poker, roulette or baccarat while enjoying their visits to different destinations.
- Integration of Technology: Virtual Reality (VR) gaming and mobile gambling applications are enhancing the casino experience. Millennial Magazine says that Millennials and Gen Z are the most active demographic in the casino tourism market, with more than 60% of them prefer mobile gaming options as well as simplicity and the ability to quickly withdraw money to your account. Additionally, according to research by P&S Intelligence, a consulting firm, mobile gaming is a fast-growing segment, with an estimated CAGR of 12.2% between 2023 and 2030.
Casino Tourism Market Size, Landscape and Regional Variations
Casino tourism is a profitable venture for both tourist destinations and casino operators. This industry creates job opportunities, increases tourism revenue and attracts more visitors to the area.
According to Mordor Intelligence™ Industry Reports, Asia Pacific is the biggest area for casino tourism, making up about 45.6% of the market. And this market is growing at a CAGR of >6% over the next 5 years. Countries like Singapore (4% of the Asia Pacific market) and South Korea (2%) countries are growing fast and help a lot in this industry.
Next is North America, with 32.4% of the market, mainly because of big gambling cities like Las Vegas and Atlantic City. They bring in millions of visitors every year. Europe is third, with 17.5% of the market. Countries like Monaco and Switzerland are popular for attracting people who bet big money.
Trends Shaping the Future of the Casino Tourism Industry
The casino tourism scene is interestingly evolving due to the advent of new technologies and trends including the following:
- Rise of Mobile Gaming and Esports Integration: The rise of mobile gaming and esports contributes to the increase of opportunities meant to attract tech-savvy travellers and younger demographics, and also bridge the gap between online and offline gambling. For instance, mobile apps offer casino games, access to loyalty programs, and betting options. On the other hand, Esports tournaments present opportunities like hosting esports events and integrating esports betting platforms, not forgetting virtual reality gaming whereby travellers can experience casino gaming sessions through VR technology.
- Focus on Integrated Resorts: An integrated resort is a big hotel complex that has a casino, meeting spaces, shows, theme parks, fancy shops, and nice restaurants all in one place. For example, around 70% of new casino establishments in Asia Pacific feature five-star hotel accommodations that offer dining options and other activities for a broader audience.
- Incorporation of Artificial Intelligence: Casinos now incorporate Artificial Intelligence to improve innovative gameplay while maintaining regulations and enhancing customer experience. The statistics from Artificial Intelligence show that casinos using AI-powered personalization tools report a 20% increase in customer retention and satisfaction. The leveraging of data analytics and AI is to tailor recommendations such as suggesting games, dining options and entertainment based on individual preferences. Additionally, using AI to create targeted loyalty programs and offers boosts player engagement and communication. This increases customer commitment and spending, helping the industry grow.
- Implementation of Responsible Gambling Practices: With initiatives like age verification, identification checks, awareness campaigns, educational resources, self-exclusion programs, and employee training on responsible gambling practices, it becomes easy to mitigate addiction risks, foster a safer gaming environment and build customer loyalty and trust.
In summary, driven by factors such as the relaxation of gambling laws, emerging trends, rising disposable income and shifted customer preferences, the casino tourism industry is poised for continued growth and evolution.