written and last updated by
Sam Smith at
16 Feb 2024
Journalist, Editorial Department
The consulting firm Eilers and Krejcik Gaming (EKG) has conducted a study examining the impact of online casinos on the revenue levels of brick-and-mortar gaming establishments. The report, commissioned by the iDevelopment and Economic Association (iDEA), indicates that the effects of iGaming have been positive.
In its research, EKG analyzed data from casinos, regulatory bodies, and regional governments over a span of 16 years. To assess the influence of iGaming on gross gaming revenue (GGR) from land-based casinos, six states were selected: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. EKG compared the cumulative quarterly growth rates of GGR for land-based casinos before and after the introduction of iGaming. In each of the states studied, the emergence of online gaming resulted in favorable changes for traditional establishments.
West Virginia's land-based casinos recorded the highest growth rate in gross revenue at 6%. This market peaked in 2012 and gradually declined until the launch of iGaming in June 2020. The report notes that 2023 could be the best year yet for West Virginia's brick-and-mortar venues.
As for the other five states, the introduction of iGaming also led to an increase in the gross revenue of traditional casinos.
The EKG study further revealed that land-based and online casinos attract different categories of players. This data was sourced from a presentation by Golden Nugget Online Gaming for investors in June 2020. Among online casino users, 55% are male, with an average customer age of 40-45 years. In contrast, the audience for land-based establishments is 51% female, with an average age range of 50-55 years. "Land-based and online casinos attract different clientele because each product offers fundamentally distinct experiences. For instance, a visit to an online platform is typically measured in minutes, while a trip to a physical venue is likely to last several hours," the report states.
As part of the study, EKG conducted a survey among operators representing both sectors of the gaming industry. Twenty percent of respondents noted that the emergence of iGaming has led to moderate growth in GGR for land-based casinos, while the remaining participants did not observe any significant changes.
It is also worth noting that gross gaming revenue in Macau could exceed 19.8 billion patacas in February.