The advent of online casinos, known as iGaming, has profoundly disrupted the gambling industry. Over the past decade, iGaming has exploded in popularity, offering convenience, variety, and accessibility traditional land-based casinos struggle to match. But how exactly has the rise of online gambling impacted classic brick-and-mortar establishments?
Rapid Growth of Online Gambling
Since the first online casinos emerged in the mid 1990s, iGaming has undergone exponential growth. In 2021 alone, the global online gambling market grew by nearly 11% to reach $92.9 billion in value. Experts predict it will be worth $127.3 billion by 2027 as more countries regulate and tax online gambling activities.
Several key factors have fueled the meteoric rise of internet casinos and betting sites, like Lucky Hunter Casino:
- Convenience – Players can access online casinos anywhere, anytime on their computers and mobile devices. No travel or dressing up required.
- Anonymity – No need to interact with others in person. Many players prefer privacy.
- Variety – Online platforms offer 100s more games than even the largest brick-and-mortar venues.
- Bonuses & rewards – iGaming sites provide generous signup bonuses and loyalty programs rarely seen in traditional casinos.
With Covid-19 lockdowns, online gambling revenue surged by 42% globally from 2019 to 2020. Being able to cater to customers digitally became an enormous advantage with land-based establishments closed.
Declining Revenue for Physical Casinos
In contrast to record profits for iGaming firms, traditional brick-and-mortar casinos have faced falling revenues and foot traffic for years.
From 2012 to 2015, gambling revenue for American commercial casinos declined from over $37 billion to $34 billion. The trend continues today.
| Year | Commercial Casino Revenue (US) |
| 2021 | $32.7 billion |
| 2020 | $30.2 billion |
| 2019 | $43.6 billion |
Table 1: Declining casino revenue in the US over the past 3 years
The numbers speak for themselves. Land-based gambling revenue dropped precipitously during the pandemic with temporary closures. But while the industry has bounced back somewhat, ongoing cultural shifts towards online entertainment threaten classic business models.
Closures & Consolidation
Thousands of traditional gambling venues have shuttered across the US over the last decade, unable to stay solvent. Atlantic City alone saw 5 major casinos close between 2014-2016. Established brands like Caesars Entertainment have resorted to bankruptcy protections and mergers to survive, acquiring William Hill in a £2.9 billion deal.
Industry consolidation allows companies to pool resources and better compete with iGaming. It also gives them an entry point to transition business online through established betting sites. Without an omnichannel approach, classic casinos cannot thrive long-term.
Future: Coexistence or Extinction?
While ominous for legacy gambling institutions, the rise of online casinos does not necessarily mean the end for brick-and-mortar venues. The two experiences appeal to different demographics and psychographics. Those seeking a social night out will always flock to Vegas.
However, adaptation is critical. Modern casinos must embrace technology to attract younger crowds. Features like skill-based gaming, virtual reality, and interactive experiences make physical spaces feel cutting-edge. Customer loyalty programs should also be integrated with online betting platforms.
The pandemic may have accelerated changes that were long coming to the gambling world. Ultimately online and land-based casinos will likely find an equilibrium – though there will be more closures and consolidation first. Companies unwilling to evolve run the risk of going extinct. For smart establishments, coexistence with iGaming provides a path into the modern digital era.
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